Company: CHEF
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0001628280-25-036589
Chunk: 52

Company: Chefs' Warehouse, Inc.
Filing Date: 2025-07-30
Form: 10-Q
Item: Item 8
Chunk 52
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 our center-of-the-plate category decreased 4.0% compared to the prior year quarter, primarily due to our exit from a non-core commodity poultry program in fiscal 2025. Estimated inflation was 5.0% in our specialty category and 10.8% in our center-of-the-plate category compared to the prior year quarter.

Gross Profit

20252024$ Change% ChangeGross profit$254,339 $229,002 $25,337 11.1 %Gross profit margin24.6 %24.0 %

Gross profit dollars increased primarily as a result of sales growth and price inflation. Gross profit margin increased approximately 59 basis points. Gross profit margins increased 59 basis points in the Company’s specialty category and increased 56 basis points in the Company’s center-of-the-plate category. 

Selling, General and Administrative Expenses

20252024$ Change% ChangeSelling, general and administrative expenses$213,750 $194,834 $18,916 9.7 %Percentage of net sales20.7 %20.4 %

The increase in selling, general and administrative expenses was primarily due to higher costs associated with compensation and benefits to support sales growth, higher depreciation expense driven by facility and fleet investments and higher self-insurance expense. Our ratio of selling, general and administrative expenses to net sales increased 30 basis points due to the higher costs, partially offsetting our sales growth.

Other Operating Expenses, Net

20252024$ Change% ChangeOther operating expenses, net$373 $301 $72 23.9 %

Other operating expenses, net increased by $0.1 million primarily due to a higher loss on asset disposals in the current quarter compared to the prior year quarter, almost entirely offset by lower third-party deal costs incurred in connection with business acquisitions and financing arrangements.

Interest Expense

20252024$ Change% ChangeInterest expense$10,715 $11,690 $(975)(8.3)%

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.

18

Provision for Income Tax Expense

20252024$ Change% ChangeProvision for income tax expense$8,260 $6,653 $1,607 24.2 %Effective tax rate28.0 %30.0 %

The Company’s effective tax rate was 28.0