The Chefs’ Warehouse, Inc. shares rose Wednesday after the company delivered stronger-than-expected third-quarter results before the market opened.

The company posted quarterly adjusted earnings of 50 cents per share, topping analysts’ expectations of 42 cents by nearly a 39% increase from 36 cents per share a year earlier.

Revenue rose 9.6% year over year to $1.02 billion from $931.5 million in the third quarter of 2024, exceeding the consensus estimate of $985.3 million.

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Gross profit margins increased approximately seven basis points to 24.2%, while adjusted EBITDA totaled $65.1 million for the quarter.

Operating income increased to $38.94 million from $31.88 million in the same period last year. The increase in operating income was driven primarily by higher gross profit, partially offset by higher selling, general and administrative expenses.

The company’s effective tax rate was 32.6% and 30.0% for the third quarters of 2025 and 2024, respectively. The company ended the quarter with cash and cash equivalents of $65.06 million.

Outlook

The company raised its full-year 2025 sales forecast to a range of $4.09 billion to $4.12 billion, up from its prior outlook of $4.00 billion to $4.06 billion, and above the consensus estimate of $4.06 billion.

The company expects gross profit to range between $987 million and $995 million, with adjusted EBITDA projected between $247 million and $253 million for the full year.

CEO Commentary

Christopher Pappas, Chairman and Chief Executive of the company, stated, “Business and demand trends improved sequentially through the third quarter and momentum in demand and market share gains continued into October.”

“Our operating divisions across domestic and international markets delivered strong growth in revenue and gross profit dollars; as well as continued progress increasing relevance with our customer base with strong year-over-year growth in unique item placements.”

Price Action: CHEF shares were trading higher by 5.41% to $61.78 at last check Wednesday.

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