The Chefs' Warehouse — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net sales increased 11.2% year-over-year to $1.14 billion for the third quarter of 2026, compared to $1.02 billion in the third quarter of 2025.
• Organic sales increased 10.3% ($105.4 million), while acquisitions contributed 0.9% ($8.7 million) to sales growth.
• GAAP net income rose to $29.6 million ($0.67 per diluted share) from $19.1 million ($0.44 per diluted share) in the prior year quarter.
• Adjusted net income per share was $0.66 for the third quarter of 2026, up from $0.50 in the third quarter of 2025.
• Gross profit increased 15.0% to $284.3 million from $247.2 million, with gross profit margins expanding 84 basis points to 25.0%.
• Selling, general and administrative (SG&A) expenses increased 12.1% to $233.4 million, representing 20.6% of net sales compared to 20.4% in the prior year.
• Operating income grew to $51.5 million from $38.9 million, with operating margins improving to 4.4% from 3.8%.
• Interest expense decreased to $9.0 million from $10.5 million due to lower debt principal and interest rates.
• Adjusted EBITDA increased 26.3% to $82.2 million from $65.1 million.
• Cash and cash equivalents increased to $164.7 million as of September 25, 2026, from $120.9 million as of December 26, 2025.
• Long-term debt, net of current portion, decreased to $696.8 million from $720.3 million at the end of the prior fiscal year.

Guidance and Future Outlook:

• The Company raised its full-year fiscal 2026 net sales guidance to a range of $4.56 billion to $4.61 billion.
• Full-year fiscal 2026 gross profit guidance is set between $1.130 billion and $1.140 billion.
• Full-year fiscal 2026 adjusted EBITDA guidance is raised to a range of $317 million to $321 million.
• Management noted momentum continued into October heading into the busy holiday season.

Business Segments and Product Lines:

• Organic case count in the specialty category increased approximately 6.1% year-over-year.
• Organic pounds sold in the center-of-the-plate category increased approximately 6.6% year-over-year.
• Unique customer placements increased 7.2% and unique customers increased 4.4% compared to the third quarter of 2025.
• Gross profit margins increased 63 basis points in the specialty category and 137 basis points in the center-of-the-plate category.
• Middle East operations continued to operate effectively in a challenging environment, with recent revenue trends at approximately 100% of the prior year.

Market and Competitive Landscape:

• Revenue trends displayed typical seasonal cadence, building from summer months into September with strong year-over-year growth.
• Food-away-from-home activity in the Middle East is supported by local residents and expatriates returning from the summer off-season.
• The Company serves over 55,000 customer locations across the United States, the Middle East, and Canada.

Risks and Challenges:

• Forward-looking statements cite risks including general economic conditions, consumer discretionary spending, and low business margins sensitive to inflationary pressures.
• Potential risks include rising costs for commodities, ingredients, packaging, distribution, and labor, as well as fuel cost volatility.
• Risks associated with acquisitions include the ability to identify new targets, integrate recent acquisitions, and realize anticipated synergies.
• Supply chain disruptions, labor shortages, and third-party supplier compliance issues (including food safety) are identified as potential risks.
• The Company faces risks related to substantial indebtedness, currency movements, and international trade disputes.

Management Commentary and Tone:

• Christopher Pappas, Chairman and CEO, highlighted excellent execution across markets and product categories driving strong growth in revenue and gross profit dollars.
• Management expressed confidence in the company's relevance with its customer base, citing solid growth in unique item placements and customers.
• The tone was positive regarding the holiday season outlook and the dedication of teams across sales, procurement, and operations.

Other Key Points:

• The effective tax rate for the third quarter of 2026 was 30.3%, including a discrete tax benefit related to the vesting of stock awards.
• The Company reported $10.0 million in common stock repurchases for the thirty-nine weeks ended September 25, 2026.
• Capital expenditures totaled $25.4 million for the thirty-nine weeks ended September 25, 2026.
• Cash paid for acquisitions, net of cash acquired, was $0.3 million for the thirty-nine weeks ended September 25, 2026.
• The Company hosts a conference call for investors to discuss these results.