Shares of Chefs' Warehouse (CHEF) surged 5% in pre-market trading on Wednesday following the company's impressive second-quarter results and upgraded full-year guidance. The premier distributor of specialty food products exceeded analyst expectations on both the top and bottom lines, demonstrating robust growth and improved profitability.
For the second quarter ended June 27, Chefs' Warehouse reported adjusted earnings per share of $0.52, significantly beating the analyst consensus estimate of $0.46 and marking a 30% increase from $0.40 in the same period last year. Revenue for the quarter rose 8.4% year-over-year to $1.035 billion, surpassing the analyst forecast of $1.016 billion. The company's performance was driven by strong unit volume and unique item placement growth across its network.
In light of the strong results, Chefs' Warehouse raised its fiscal 2025 outlook. The company now projects net sales between $4.0 billion and $4.06 billion, up from its previous guidance of $3.94 billion to $4.04 billion. Additionally, it expects adjusted EBITDA to range from $240 million to $250 million. This positive revision reflects management's confidence in the company's growth trajectory and operational efficiency. Investors are responding favorably to the enhanced outlook, contributing to the stock's pre-market rally.