The specialty food distributor posted a 10.5% increase in net sales to $1.14 billion for the final quarter of 2025, supported by organic volume growth and acquisitions. Despite the revenue gain, GAAP net income declined year-over-year due to an $8.0 million impairment charge on intangible assets.
The Chefs’ Warehouse, Inc. (NASDAQ: CHEF) reported net sales of $1.14 billion for the fourth quarter ended December 26, 2025, marking a 10.5% increase over the $1.03 billion recorded in the same period the previous year. While top-line growth remained robust, GAAP net income fell to $21.7 million, or $0.50 per diluted share, from $23.9 million, or $0.55 per diluted share, in the fourth quarter of 2024. On an adjusted basis, which excludes certain non-cash items, the company reported an increase in profitability, with adjusted net income rising to $29.9 million, or $0.68 per diluted share.
Fourth Quarter Performance Affected by Impairment Charge
The fourth-quarter results were impacted by an $8.2 million expense in other operating items, compared to income of $2.3 million in the prior year quarter. This shift was primarily driven by an $8.0 million impairment charge related to a non-core customer relationship intangible asset. Additionally, the company’s volume metrics were affected by the strategic exit from a non-core commodity poultry program, which contributed to a 2.4% decrease in organic pounds sold within the center-of-the-plate category.
Financial Performance Driven by Higher Organic Sales
Total organic sales increased by $99.9 million, or 9.7%, while acquisitions accounted for $9.1 million of the growth during the quarter. Gross profit rose 10.2% to $276.6 million, though gross profit margins contracted by 8 basis points to 24.2%. This margin performance reflected a 45-basis point improvement in the specialty category that was offset by a 50-basis point decline in the center-of-the-plate category. Selling, general, and administrative expenses increased 8.9% to $225.2 million, driven by higher compensation and benefits to support growth, as well as increased depreciation from facility and fleet investments. Adjusted EBITDA for the quarter climbed to $80.3 million from $68.2 million in the prior year period.
Net Sales and Profit Guidance for 2026
Management issued financial guidance for the full fiscal year 2026, projecting net sales in the range of $4.35 billion to $4.45 billion. The company expects full-year gross profit to be between $1.053 billion and $1.076 billion, with adjusted EBITDA forecasted between $276 million and $286 million. The company’s ongoing strategy focuses on capturing market share through organic volume growth, the acquisition of new customers, and increasing unique item placements across its domestic and international markets.
Consistent Demand Drives Specialty Food Growth
Performance during the fourth quarter was supported by consistent demand within the upscale-casual and high-end dining segments, which management identified as a healthy environment for the company’s core customer base. Revenue growth was influenced by a combination of increased sales volumes and price inflation. As a premier distributor of specialty food products, the company currently serves more than 55,000 customer locations across the United States, the Middle East, and Canada.