The Chefs’ Warehouse Delivers Record Revenue in Q4 2024
- Hardik Shah
- Feb 12
- 3 min read
TLDR
Record-breaking revenue: Net sales surged 8.7% to $1.03 billion, marking the company’s first-ever billion-dollar quarter.
Operational growth: Expanded market share with a 12.3% increase in unique item placements and a 4.5% rise in customer acquisitions.
Strategic initiatives: Enhanced digital adoption and cross-selling strategies contributed to margin growth and efficiency gains.
Financial Results
The Chefs’ Warehouse (CHEF) is a leading distributor of specialty food products across the U.S., Canada, and the Middle East. The company primarily serves upscale casual to fine dining establishments, country clubs, hotels, caterers, and specialty food retailers. With a portfolio of over 88,000 products, CHEF has built a strong reputation for delivering high-quality, niche food ingredients to a diverse customer base.
CHEF delivered robust financial performance in Q4 2024, setting new records across key metrics:
Net Sales: $1.03 billion, an 8.7% YoY increase (Q4 2023: $950.5 million).
Gross Profit: $251 million, up 9.8% from $228.6 million in Q4 2023.
Operating Income: $46.5 million, reflecting a 21.7% increase YoY.
Net Income: $23.9 million, up from $16.0 million in Q4 2023.
Adjusted EBITDA: $68.2 million, a 15.6% growth YoY.
“Business activity and demand remained consistently strong through the fourth quarter amidst a healthy environment for our core upscale-casual to higher-end dining customer base.” - Christopher Pappas, CEO
Operational Performance
CHEF’s operational expansion fueled its strong Q4 performance. Key highlights include:
Market share growth: The company saw a 12.3% increase in unique item placements and a 4.5% increase in new customer acquisitions.
Category expansion: Specialty sales rose 11.5%, driven by organic case growth of 6.1%, while center-of-the-plate protein sales increased 3.6%.
Digital transformation: Online orders now account for 56% of specialty product sales, up from 48% in 2023, improving efficiency and customer engagement.
Market Insights
The specialty food distribution sector remains resilient despite economic uncertainties. CHEF continues to benefit from:
A growing high-income consumer segment supporting upscale dining.
Increased adoption of digital ordering and automation to drive efficiency.
Supply chain stability, despite inflationary pressures in select categories such as chocolate and eggs.
“Net inflation was 3.8% in the fourth quarter, with specialty category inflation at 5.1% and center-of-the-plate inflation at 1.8%. We have historically navigated such fluctuations through strategic sourcing and pricing adjustments.” - Jim Lenddy, CFO
Strategic Initiatives
Management outlined several key initiatives to sustain long-term growth:
Facility expansions: Investments in distribution centers in Texas, Florida, and California to streamline operations and drive efficiency.
Cross-selling strategy: Integration of specialty and protein categories, particularly in Texas, which has driven 15% growth in revenue per case.
Cost optimization: Leverage automation in warehouse operations and supply chain management to improve margins.
Acquisitions: Targeted acquisitions to strengthen market positioning and expand product offerings.
Forward Guidance
For FY 2025, CHEF provided optimistic guidance:
Net Sales: $3.94 billion – $4.04 billion
Gross Profit: $951 million – $976 million
Adjusted EBITDA: $233 million – $246 million
The company remains committed to improving operating leverage and expects incremental EBITDA margin improvements of 20-25 basis points per year over the next four years.
The Bottom Line
The Chefs’ Warehouse delivered a standout quarter, marking its first billion-dollar revenue period while maintaining robust margin expansion. Its strategic investments in digital ordering, supply chain efficiencies, and targeted market expansion position the company for sustained growth.
Christopher Pappas summed up the company’s trajectory:
“We are building a total solution company in every market we serve. Our focus on operational excellence, product innovation, and market expansion ensures that The Chefs’ Warehouse remains the partner of choice for the world’s best chefs.”
With a solid growth trajectory and strong financial health, CHEF is well-positioned to navigate market challenges and capitalize on future opportunities.
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