163086AB7 Filings — Chefs’ Warehouse, Inc. - FilingSpy
163086AB7
Chefs’ Warehouse, Inc.
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A distributor of specialty foods and premium proteins that supplies more than 55,000 restaurants, hotels, and country clubs with everything from artisan cheeses to center-of-the-plate cuts. The company grew out of a family butter-and-egg business started in New York in 1956, and its pivot to high-end ingredients came after co-founder Chris Pappas played professional basketball in Europe and discovered specialty foods American chefs couldn't easily find. Its name reflects that mission: a warehouse built for chefs.
Organic specialty case growth held at 6% and gross margin widened to 25.1%, but operating cash flow fell 23% on working capital consumption.
held its pace — specialty case count rose 6% for a second straight quarter. rose 11.4% to $1.06 billion and widened 0.5 points to 24.3% as pricing stayed ahead of costs, lifting 69% to $17.4 million. The cash cycle tightened again, pulling down 23%, so the earnings gain has not yet reached the balance sheet.
Key takeaways
Organic volume growth was the quarter's defining feature: specialty case count rose 6.0% and center-of-the-plate pounds rose 8.8%, while the Italco acquisition added 0.7% to the .
widened 0.5 points to 24.3% as effective pricing and product cost management in an inflationary environment more than offset input cost pressure.
rose 68.8% to $17.4 million, or $0.40 per diluted share, amplified by a 45.7% increase in and lower .
Section summaries
Management's Discussion and Analysis
Net sales rose 12.9% to $1.17B in Q2 FY2026 on 6% specialty case growth, 8.8% center-of-the-plate pound growth, and inflation.
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Q2 FY2026 grew 12.9% to $1.17B, with contributing 12.2% and the Italco acquisition adding 0.7%.
margin expanded 49 to 25.1%, driven by effective pricing in an inflationary environment and product cost management.
fell 22.8% to $38.3 million as and supplier payment timing consumed , while declined 17.9% to $30.6 million.
The company repurchased $10.0 million in stock and prepaid $5.0 million of term loan debt, reducing to $346.3 million; a 100-basis-point rate increase would now reduce after-tax earnings by $2.2 million annually, down from $2.4 million last quarter.
SG&A as a percentage of improved 70 to 20.0%, reflecting fixed-cost on the higher sales base despite increased compensation, facilities, and costs.
What changed
Organic specialty case growth held at 6.0% in Q2, essentially unchanged from the 5.7% pace in Q1, suggesting the acceleration flagged last quarter was not a one-time comparison benefit.
widened to 24.3% from 23.8% in Q1, as the center-of-the-plate compression that narrowed margins in Q1 reversed; the filing attributes the improvement to effective pricing and product cost management.
fell to $38.3 million from $49.6 million in Q1, as the consumption that was flagged as a risk last quarter materialized through and supplier payment timing.
declined to $346.3 million from $359.3 million in Q1, and the earnings sensitivity to a 100-basis-point rate move fell to $2.2 million from $2.4 million, reflecting the $5.0 million term loan prepayment.
What to watch
Whether organic specialty case growth sustains near 6% in Q3 or reverts toward the 3–4% range seen through most of 2025, given that the Q1 and Q2 pace is the fastest since early 2025.
Whether the 24.3% holds if inflation moderates, given that an estimated $38.7 million of Q1 came from price inflation and the filing cites effective pricing as the margin driver.
The trajectory of against the raised capital expenditure of $45–$55 million for fiscal 2026, given the $30.6 million result in Q1 and the -driven consumption that persisted into Q2.
The impact of any Federal Reserve rate decisions on earnings, with $346.3 million in and each 100-basis-point move now affecting after-tax earnings by $2.2 million annually.
Specialty category organic case count rose 6.0% and center-of-the-plate organic pounds sold increased 8.8%, with inflation adding 4.0% and 6.4% to respective category sales.
as a percentage of improved 70 to 20.0%, reflecting despite higher compensation, facilities, and costs.
increased to $96.7M for the first half of FY2026, aided by sales growth and a prior-year strategic pull-forward of purchases.
The company extended its $100M program, bought back $10M in stock, and expects FY2026 of $45M–$55M.
Quantitative and Qualitative Disclosures About Market Risk
Interest Rate Risk Our exposure to interest rate market risk relates primarily to our long-term debt. As of June 26, 2026, we had aggregate indebtedness outstanding of $315.5 million that bore interest at variable rates. A 100 basis point increase in market interest rates would…
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Interest Rate Risk
Our exposure to interest rate market risk relates primarily to our long-term debt. As of June 26, 2026, we had aggregate indebtedness outstanding of $315.5 million that bore interest at variable rates. A 100 basis point increase in market interest rates would decrease our after-tax earnings by approximately $2.2 million per annum, holding other variables constant.
We are involved in legal proceedings, claims and litigation arising out of the ordinary conduct of our business. Although we cannot assure the outcome, management presently believes that the result of such legal proceedings, either individually or in the aggregate, will not have…
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We are involved in legal proceedings, claims and litigation arising out of the ordinary conduct of our business. Although we cannot assure the outcome, management presently believes that the result of such legal proceedings, either individually or in the aggregate, will not have a material adverse effect on our condensed consolidated financial statements, and no material amounts have been accrued in our condensed consolidated financial statements with respect to these matters.
There have been no material changes to our risk factors as previously disclosed in Part I, Item 1A. included in our Annual Report on Form 10-K for the year ended December 26, 2025. In addition to the information contained herein, you should consider the risk factors disclosed in…
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There have been no material changes to our risk factors as previously disclosed in Part I, Item 1A. included in our Annual Report on Form 10-K for the year ended December 26, 2025. In addition to the information contained herein, you should consider the risk factors disclosed in our Annual Report on Form 10-K.
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