Chefs' Warehouse (CHEF) stock plummeted 5.14% during intraday trading on Wednesday, following the release of the company's fourth-quarter fiscal 2025 financial results.

While the specialty food distributor reported adjusted earnings per share of $0.68, beating the analyst consensus estimate of $0.63, and quarterly sales of $1.143 billion, surpassing the $1.098 billion estimate, investors focused on concerning aspects of the report. Operating income for the quarter was $43.2 million, down from $46.5 million in the prior-year period. This decrease was primarily attributed to a $10.5 million increase in other operating expenses. Furthermore, the company's gross profit margin declined by approximately 8 basis points to 24.2%.

The market's negative reaction suggests investor concern over profitability pressures and rising costs, overshadowing the top-line sales beat and earnings outperformance.