Company: CHEF
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0001517175-25-000008
Chunk: 42

Company: Chefs' Warehouse, Inc.
Filing Date: 2025-04-30
Form: 10-Q
Item: Item 8
Chunk 42
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6 basis points in the Company’s specialty category and decreased 83 basis points in the Company’s center-of-the-plate category. 

Selling, General and Administrative Expenses

20252024$ Change% ChangeSelling, general and administrative expenses$202,763 $190,321 $12,442 6.5 %Percentage of net sales21.3 %21.8 %

The increase in selling, general and administrative expenses was primarily due to higher costs associated with compensation and benefits, facilities and distribution to support sales growth and higher depreciation expense driven by facility investments. Our ratio of selling, general and administrative expenses to net sales decreased 50 basis points due to sales growth combined with certain benefits derived from our investments in our facility and distribution operations.

Other Operating Expenses, Net

20252024$ Change% ChangeOther operating expenses, net$497 $3,112 $(2,615)(84.0)%

Other operating expenses, net decreased by $2.6 million primarily due to lower employee severance charges incurred in the current quarter compared to the prior year quarter.

Interest Expense

20252024$ Change% ChangeInterest expense$10,253 $13,244 $(2,991)(22.6)%

Interest expense decreased primarily due to lower aggregate principal amounts of debt outstanding and lower interest rates in the current quarter compared to the prior year quarter.

16

Provision for Income Tax Expense

20252024$ Change% ChangeProvision for income tax expense$2,194 $828 $1,366 165.0 %Effective tax rate17.6 %30.0 %

The Company’s effective tax rate was 17.6% and 30.0% for the thirteen weeks ended March 28, 2025 and March 29, 2024, respectively. The effective tax rate for the thirteen weeks ended March 28, 2025 reflects the annual effective tax rate estimated for the full fiscal year, adjusted for a discrete item related to a tax benefit from the vesting of stock awards during the period.

LIQUIDITY AND CAPITAL RESOURCES

We finance our day-to-day operations and growth primarily with cash flows from operations, borrowings under our senior secured credit facilities and other indebtedness, operating leases, trade payables and equity financing.

Indebtedness

The following table presents selected financial information on our indebtedness: 

March 28, 2025December 27, 2024Senior secured term loan