Chefs' Warehouse Stock Gains As Q2 Results Smashes Estimates

Chefs' Warehouse Inc CHEF reported second-quarter FY21 sales growth of 111% year-on-year, to $423 million, beating the analyst consensus of $355.02 million. Organic sales increased by 106%.
Gross profit increased about 120.8% Y/Y to $95.9 million, and the profit margin expanded 101 basis points to 22.7%.
Selling, general and administrative expenses rose 32.6% Y/Y to $90.4 million. Operating expenses as a percentage of net sales were 21.4%, versus 34.0% last year.
The operating margin was 1.1%, and operating income for the quarter rose to $4.7 million.
The company held $146.9 million in cash and equivalents as of June 25, 2021.
Adjusted EBITDA for the quarter was $17.2 million, versus negative $(13.7) million last year.
Adjusted EPS of $0.04 beat the analyst consensus for a loss of $(0.32).
"As the quarter progressed, our customers benefited from in-door and out-door capacity growth, strengthening consumer demand and the initial stages of menu expansion," said Chairman and CEO Chris Pappas.
The company did not provide guidance for 2021 at this time, citing continued uncertainty regarding the pace of broader economic recovery and the timing of event and travel related business activity.
Price action: CHEF shares are trading higher by 14.2% at $30.42 on the last check Wednesday.

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