Company: CHEF
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001517175-25-000021
Chunk: 62

Company: Chefs' Warehouse, Inc.
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 8
Chunk 62
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9 %

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 decreased 10 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$1,000 $3,385 $(2,385)(70.5)%

The decrease in other operating expense, net was primarily due to lower employee severance charges during the thirty-nine weeks ended September 26, 2025 compared to the prior year period, and non-cash credits of $0.7 million for changes in the fair value of our contingent earn-out liabilities in the prior year period. 

21

Interest Expense

20252024$ Change% ChangeInterest expense$31,503 $36,677 $(5,174)(14.1)%

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

Provision for Income Taxes

20252024$ Change% ChangeProvision for income tax expense$19,707 $13,522 $6,185 45.7 %Effective tax rate28.0 %30.0 %

The Company’s effective tax rate was 28.0% and 30.0% for the thirty-nine weeks ended September 26, 2025 and September 27, 2024, respectively. The effective tax rate for the thirty-nine weeks ended September 26, 2025 reflects the annual effective tax rate estimated for the full fiscal year, adjusted for discrete items related to a tax benefit from the vesting of stock awards during the period, partially offset by a discrete charge related to a return to provision adjustment on the 2024 tax return.

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: 

September 26, 2025December 27, 2024Senior secured term loan$252,750 $260,000 Convertible senior notes287,500