CHEF - Earnings call 4 2023 | The Chefs' Warehouse, Inc.

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Operator

Greetings, and welcome to the Chefs' Warehouse Fourth Quarter of 2023 Earnings Conference Call.

As a reminder, this conference is being recorded. I would now like to hand the conference over to your host, Alex Aldous, General Counsel, Corporate Secretary and Chief Government Relations Officer. Please go ahead, sir.

Alexandros Aldous

Thank you, operator. everyone. morning, Good today's CEO; on Chris Founder, Pappas, With Jim call Leddy, and and our Chairman me are CFO. By now, XXXX quarter our to you should earnings have press access fourth release. Relations found under also at can be the It Investor section. www.chefswarehouse.com Throughout this presenting measures, well and among earnings including, income as EBITDA share. will both historical estimated estimated EBITDA per non-GAAP and adjusted and net financial others, adjusted call, conference we be as historical and adjusted differently in These and calculated measurements are may used measures accordance calculated titled GAAP with similarly by not in companies. financial non-GAAP be other most reconciliations comparable today's non-GAAP Quantitative our financial of release. financial measures in to appear their directly measures GAAP press

our I of what statements forward-looking financial not we our will performance. guarantees future statements, today subject could are of statements Before actual remind differ regarding everyone These forward-looking need our not and formal estimated uncertainties discussion should that part that remarks, and from Such you expect. include performance, begin reliance to statements cause put on. to including undue therefore, we to results risks numerous are materially

will business are these I Others to in turn are will in detail. reports the open Form our on are we over which and risks mentioned website. our Then update provide that, fourth going call Form a Chris we questions. SEC in for up over go and quarter Today, Chris? Pappas. With results today's the are on XX-Q, the report release. quarterly available to call of XX-K annual Some on discussed

Christopher Pappas

delivered continued and organic to growth as margin coming November into markets fourth Business Price for XXXX. and you and Chefs' XXXX quarter earnings teams to improvement. and international American the and seasonal out Warehouse thank through out close volume our demand September activity Alex, trends North across of you, our customer strengthened progressed all strong moderate, fourth quarter Thank and our December call. joining inflation

our specialty the strive I that as culinary CW impeccable of dedication partners would have and and all mission deliver protein like produce service. and passion for creativity teammates fresh they our move to of for excellence see finest we the and foods, thank supplier customer the and our and into the success As XXXX, inspire we center-of-the-play for discover to

Specialty we quarter. the fourth organic quarter and XX.X%. of growth XX-week the few A on net And year XX in rata present quarter Gross As of points a fourth Organic specialty reminder, by XX-week year-over-year. fourth XXXX, the a approximately in XXXX, the on gross of sales. of plate basis gross margins points. up primarily category XX customer specialty as which growth the XX.X% Specialty points fourth both organically fiscal the fiscal certain than approximately Gross decreased due placement as to was quarter to we a higher such, category comparing while over of pro increased of X.X% are compared lower growth case basis the margin quarter. Hardie's. the in of basis profit a margin as to fourth profit were XXXX, increased comparison. quarter in the and center-of-the-plate sales addition center the of unique XX results highlights quarter will driven basis growth were a approximately X.X% pounds the include XX.X%, prior margins XX-week from were year, XX.X% pro rata prior reported

Jim more profit the increased specialty Hardie's will XX year Excluding profit moments. in gross quarter. on gross prior and approximately margins details points provide a basis margins versus few

well the and capacity warehouse of operations expanded both on integration operating harvesting the projects with Philadelphia additional centers, located of as under We as part produce in recent our distribution distribution serving well and region of multiple involve the are: and Texas, initial distribution as in processing, New over growth facilitated investments our facility consolidation Austin, of our the distribution key and as in our quarter, markets significant ongoing These we one sales for few completed have Brothers acquired York further meat operations we and In During room distribution in markets routes a distribution fourth specialty in and our steps acquisitions. consolidation across Specialty and in have by to sales focus cross-selling certain Opa-locka. grow market. in stages. to distribution completed This New begun our and process our years Florida, existing route the center Southern seafood the network. parties in combined initiated Jersey protein and center highlights force cross-selling located come. capacity now A into businesses roof X teams, -- we new facilities We protein provides Allen in and the Metro creates Dallas the specialty Pennsylvania new in and with consolidation as room and of Mid-Atlantic markets. with

We have largest in and working market. reduced state's distribution on plans future Houston facility-related costs are the in

anticipate Our the capacity of year. Dubai the additional operations to expansion continues in in second half this progress, commencing and we of out

XXXX phased of second Our of end Northern track processing consolidation progressing and California protein quarter the move of is the to in starting and a year. through on the begin in

acquisitions plan. to expect recent free capital beyond, allocation integrate expanding and generation balance on our X-year XXXX flow delivering leverage further and we strengthening the while focusing our cash infrastructure, For sheet,

the and we distributor enter remain this higher-end upscale growth, phase marketer it expect leading liquidity. to DNA more our that, quarter update an we in Chefs' As rooted Warehouse our discuss information financial turn and of over we detailed and the food dining casual as next Jim? to I'll on With for to the Jim our the serve. establishments to markets in specialty

James Leddy

liquidity. good and and sheet and operating you, of prior provide versus on comparison our morning, quarter provide everyone. Thank the our year current I'll update now a results Chris, balance quarter an

in quarter quarter of pro-rated for fourth reported the represents fourth million XX, X.X% million which to specialty the plate basis, growth fourth net the XX.X% quarter. from was for XXXX. Net sales of our the comparing XX a sales weeks XXXX, versus $XXX.X a sales of net Net XX increased On basis, XX.X%. approximately margins on compared $XXX.X ended quarter $XXX.X year XX%. quarter fourth added for to the XX-week pro-rated to category weeks, center XX a of profit approximately reported increased net inflation inflation The XXXX. the versus in of approximately sales XXXX, quarter for our quarter. million XXXX December basis Our a in of the consisting XX.X%. increase of acquisitions, profit and to result of XX% of as increased contribution points sales weeks quarter, which was increased XX for $XXX.X of XX increased from growth an well gross the rata X.X% in sales of X.X% sales million in XX.X% as in the pro organic Gross XX.X% approximately weeks to category the inflation prior the profit Gross fourth

other current percentage quarter for quarter fourth operating million the our increased higher the quarter adjusted to holiday expect $XX.X a quarter. fourth XXXX fourth mentioned all the procurement a On administrative were general XX.X% year of and increase income year was quarter and associated These softer season on and to increased service third summer compared XX.X% to administrative fourth the and with quarter expenses million of margin adjusted fourth fourth Income costs million teams quarter gross delivered coming have for across expense into sales, quarter. was margin to increase Selling, the the providing of approximately expenses for fourth prior from the prior for selling, for supporting $XX.X operations, XXXX. premium quality to XXXX million in as the of the income general by the compared higher Operating as operating our The $XXX customers the come Chefs' continued and support for significantly profit XXXX. XXXX of As primarily by call, gross quarter the of from driven due expenses, quarter. costs quarter months. our expense offset facility expenses and regions, $XX.X to the costs was versus basis, for net strong fourth The of trends product distribution the performance Warehouse. growth the operating the compared including a $X.X progressed of fourth XXXX out functions XXXX. profit trends versus of growth and quarter benefits, operating quarter was improved primarily million tax lower XX.X% for And compensation, of and our $XXX.X sales in the pro-rated sales, XX% while expenses million higher partially XXXX. to including dollar

net quarter $XX.X per was to or Our quarter. $XX for share million Adjusted of diluted quarter to $XX was fourth of fourth quarter fourth of the compared million diluted million for the fourth fourth compared share a $X.XX GAAP the $XX.X share compared net net adjusted of to share XXXX year quarter. the XXXX year diluted for non-GAAP On $X.X quarter of $X.XX basis, income fourth per for the income had we XXXX. EBITDA million of or million the for diluted $X.XX million $XX.X income per or for or prior per prior $X.XX XXXX

EBITDA fourth update X.Xx ABL million, on quarter, approximately At and third as equivalents under cash of the facility. the had our $XXX.X debt million total adjusted as Total was XXXX. compared cash $XXX.X balance comprised availability liquidity of of to of net the an and the Turning approximately $XXX million we million to of end inclusive of end all the sheet of was approximately liquidity. in to quarter cash and $XX.X debt X.Xx and our net of

our in year the guidance we that full $X.XXX as the our estimate year to year million. million XXXX. be be net between range for will to the of for -- XXXX sales financial current $XXX and full $XXX to $X.XXX EBITDA guidance are $XXX trends Based and adjusted to million the billion. be we full million of on providing profit follows: billion Turning $XXX Gross between in and business,

Our XX.X estimated shares. full million year approximately count is share diluted

included reporting be that are count. full year, questions. diluted to will in purposes, For and the the senior to dilutive open in Thank notes we Operator? we conversion notes our upon share our those point, at unsecured for you. expect of it fully issued this XXXX maturing convertible could be accordingly, currently up And shares

Operator

financial and everyone Instructions]. company's start in non-GAAP section can we today's Q&A, the of remind GAAP the to a we just the of the to comparable the reconciliation Relations be measures [Operator Investor website release. Before measures want directly most that in press found financial

Alex comes of from Jefferies. question first Our Slagle

Alexander Slagle

the on transactions? to of maybe, first, over magnitude expectations ask are I you wanted for cadence, and no that sense about to provide and 'XX 'XX could rolling like, assuming the that outlook into get the what impact related other a if for some looks acquisitions

Christopher Pappas

In of of that wrap the we And of had right sized first previously the was acquisition your around question? the terms X.X% XXXX, outlook part for in impact, to then that terms X%.

Alexander Slagle

Yes.

Christopher Pappas

feels with had is we for into is impact usual relative, some teams executed worst And out our pretty January. was and so coming good January build February markets, the during in it January. Well, we in the of our pretty taking Obviously, some we actually in our But started off entire the It's good place. a that the very industry actually, was month January month. but really weather we industry. saw the there company a of month, well like --

now, guidance and our go we're from there. sticking with right So

Alexander Slagle

should the that And as quarter, back is expenses first quarter usually EBITDA. quarter typical continuing your only first about XX% operating cadence second through think we normal first half expect the we seasonal OpEx elevated? or of to the more expenses, getting the for the EBITDA, be expectation elevated annual to Are cadence that of XX%, the we

Christopher Pappas

impact We third Florida midway increased from we'll Jersey rent wrapped the the then quarter. wrap the the rent and in year, of through the additional New

they to X for returning in the terms or sure. first of years, But So normal in continuing the the than year. there percentages X past have of elevated EBITDA some the more expenses are half are

Operator

Next Todd from Benchmark of question Company. comes Brooks

Todd Brooks

the Congrats some and couple did to A with on against allocation of of plan repurchase you you. did X-year partners guys One, be in new part the execute a capital QX share questions that. quick put for work your to I results. place lending able as know

share plan quarter it much the not the but at you active of Just in were evidence in full what count fourth the all quarter? on was,

Christopher Pappas

of end any into of hadn't No. executed the We well fourth of actually fourth through. the no, we almost And put it quarter, place the through as it about halfway quarter.

Todd Brooks

course And your repurchase anticipated fully the what some for of imply pointed you XX.X%, to guidance, 'XX? over that the full year diluted, does

Christopher Pappas

settle implies mature we No. converts XXXX. of to expect that is the What it cash that XXXX to end really million at $XX the

dilutive them we year. $XX.X estimate expect so entire million. And don't was previous to The for be fully the

pretty So you much XXXX associated you converts out shares that, $XX.X the the to million. take with and not just those that XXX,XXX gets

Todd Brooks

one, to into I'm to customers the then the love add the customer accelerating drivers out And basis another past go be year-over-year seems to unique nicely there? I'd -- to Chris, it just 'XX? for Chefs' what's And and at ability looking are you on several quarters. fold new What to hear the tail the look growth, over the a as and

Christopher Pappas

been that's continue our driver Again, to train almost hire team, years now. engine for and salespeople we and to XX new the

as open really is take over for our coming And much customers. customers, growth more we've in is orders, go to up actual had various orders of attrition of we digital freeing our to continue for and are such base -- reasons now our using out awareness which to more from and the more as important sales years. grow team and as customer are as natural customers sticky the is it XX an because part So

but I customers open what's And customers we You driving there's to who coming Most we're the that their are restaurants. reasons that It's opening nature to the winning. in they new mature out face love that we have like And we of sell. new Chefs' new partner, that many is sell constantly and the that We the got feel as sometimes leases tours, and independent to other just customers restaurant territories mature restaurants. number. turnover, why think where think and that's restaurants let's I of that's in. sell; dominant

Operator

Carden UBS. Mark Our next from question of comes

Mark Carden

some sales it to got seasonality. start, So sounds reflecting sequentially the as stronger like quarter progressed,

specific the clarify, to the down guys than pick Is of in week? you any up the see less did with to out each respect might call-outs growth extra you it you have amount and also seeing? month more when you're or Just rate expected? demand guys then of trade adjust And

Christopher Pappas

on you seasonality. No, the margin volatility the normal pretty our many cadence call; We talked was coming in out think weaker the summer strength quarter, in QX September, a typical the months. years of I prior we season impacted pointed to in of COVID and that about out saw demand

And think Xst weeks November to the corporate and events parties back the the really Christmas, October November come I was you then saw October think, and were typical between very come December I and the X from level a back, levels. of December, Thanksgiving seasonal pre-coded perspective. that --

completely 'XX, in saw that, think you back. it a bit wasn't little I of but

X would the very so I And we are those really think strong helped what I that normal to and quarter. fourth get call weeks think back a quarter

Mark Carden

it's bottomed 'XX Do inflation how you see you this you it in think do guys out shaping XQ. at point? And moderated just that up point? at then in mentioned And this

Christopher Pappas

don't and we see in what really we expect but aggregate. is, we now say predict would what I inflation, right

going distribution We our have products XX,XXX through centers.

mix year-over-year are moderate, inflation cocoa-based some in we've mid-single-digit deflationary. inflationary, of was what in quarter, of Right year like type little are But have is the so that a sequential aggregate, a and beginning seen in on are now, Some of far products. low which saw a the continuation the we chocolate. bit of things you to fourth what with certain

droughts. affected have You olive by oil

you're that couple are to a of we But expect inflation this have that and far overall, seeing year, moderate products continue. so inflationary. We dairy

Operator

question comes from Capital BMO Our of Bania Kelly Markets. next

Kelly Bania

Obviously, maybe of there finding understand flowing couple quarters. Chefs' some line how help the might me acquisitions. in seems for It last us I'm the been a more, top just network. Wanted but you to they're talk But you're getting about some to just several upside broader one talk or detail like Warehouse how be in wrong. integrated maybe can in from have little acquisitions the correct And if those coming of more performing. about bit

James Leddy

very Kelly. are I well, think going things

has call could we years. the their our think around past from call see hybrid I team growth. it now. right growth, the from X you I And acquisitions the it arms

the products melt what's the companies. that's As family the share of Warehouse to see to part of companies I start years. In for And think other acquisitions warehouses really continued what available systems past comfortable we've starts best sales of the become team and been force driving growth on so the to behind put start Chefs' they could many as our and many are together. them We practices. already our computer

not finish every shows And But expectations. our of better. we we're get line in I So day, the numbers. near anywhere the that think

We we continue in these other's warehouses new independent to each warehouses build and have the the businesses. that's X and focus. built continue to We've really that cross-sell customers markets X,

years. is So all some and and the we're the to we'll and today, our we're the and proteins drive get trucks, dairy the going of specialty sell combine here facilities newest to line and and over in our them able same goods where dry many and continue to produce synergies, Florida and on what's next that's bottom one this

Kelly Bania

Just follow couple questions. wanted more up with to a

specialty and the a just your headcount force in and compete that as day-to-day same You that you the years this and though basis. seems more force and of of more years. there. remind big expect? question you competitors year head in sales in on growth And maybe growth with that the broadliners size the recent count sales maybe are the of across directly private you us coming seeing mentioned are of increasing some the It dynamic than is, force And sales many also

James Leddy

we is hear think street see so our What On some new expensive again, everything today. -- all I from always leaders perspective, is people. we the

So the hire when expensive. really benefits you are people,

If expensive. you are car on them put expenses the very road,

our use And So our I cell. view and think into that continue it's I call what more technology free to more up. team I think a to team is to going

the is all over I there's X, think sales X,XXX saying years vision for X companies. this in past been with that my our I've people the department

So their that and as the leveraging on but in do our regions in calls produce. having products integrate businesses have new and with calls a really protein Chefs' them to sales, more people introducing now, them to businesses continue it's big other now new it's existing we we customers, customers, more all quite Warehouse

in doing the really plate, I is it's trying I same do So facing with is $XX you're independent of you're the public inflated every have more to X Everything billion companies or last the a because company to going And think more get is thing, is leverage one that's key. years. that small expensive. the think the and giant whether you're marketplace, everything to especially

get important leverage So get it's larger the efficient to your to so drops on and more overhead.

Kelly Bania

last of us issues and maybe one. ability there's just you from just conditions products of the in and any maybe what there. some here, talk like And are market of that doesn't just products but today's from in your remind cost import getting your It Europe sound coming over about percent

James Leddy

American been impact in an the to hasn't or U.S. North Red Sea there what's businesses. really our So happening from

down insane. way settled but not prices So obviously in the logistics prices crazy range come COVID a and than little that before, higher are bit a have since

disclose We really from much Europe. percentage Europe. difficulty haven't the don't coming we comes that So really from had

that. by our the menus customers supply is there and like there during and hasn't and they of customers just with bumps price business of a seems some being bit have East date, entire job done the But team substitutions and material via disruption. Chefs' any being job would been And passed a are their adjusting great that impacts to a really with chain market that it the adapting comes had Sea. they've mitigating restaurants [indiscernible]. felt at product But it great Middle And of the are and We the Red some with little on. doing of managing working over

the experienced So last a I over X years environment hasn't a the the really first logistics year of or X would volatility months say, COVID? that or X post we over overall, lot just had

Christopher Pappas

more I think X,XXX got wars over because again, going on. adapted. from COVID, the inventories since state is with keeps pretty world Kelly, countries climate our now have And in in X we've ever partners a volatile change Everybody suppliers XX impacts.

of it. ahead gotten everyone's think I So

anticipate the always said, So Jim everybody disruption. U.S., in think I like some

So of way ahead it. we're

and they business is inventory December all -- is Our to very logistical is it. said, going strong. on was was it's had an great dealing Dubai, way they because so team team warehouse, something and strong, The And is And demand Jim something in happens. there ahead over seasoned fine. the incredible I it which pressure and of try with the as they're there, challenges, our accustomed came any that with it think was a major before In get

think we're I good. So

Operator

CL Our next from King. question comes of Andrew Wolf

Andrew Paul Wolf

to the about margin. wanted guidance the ask EBITDA I in terms of

more the expands and in the to then than is about basis at you XX%. EBITDA, at margin heavy starting 'XX. looking first to closer OpEx half of So Alex's on XX the it midpoint from gross And that, 'XX improve. it And question, are appears being and guys points midpoint from at sales

of for wanted is particularly said-- little the guidance. actually, where did margins year, just -- the both could well, deleveraging. I as know cadence if the more longer-term sense, you into see dive you're flow ICR, talk And about the to the not get a you they OpEx you So I business how at

leverage margins it start see greater do you view X% Is you and get it? to long-term and being reestablished? how Just establish getting to you up that that it Is the greater X% OpEx to really to going goal? once how

James Leddy

year, through cadence terms in range. it's guidance the of the the a Just and

look our $XXX you EBITDA million. it's million $XXX guidance, at to If

percentage the adjusted midpoint EBITDA think margin I is conservative.

at be that the some ICR headwinds improved. We all our the have do QX and related chance on near-term a to that, there's of think I still about investments. talked that call. could growth cost We

'XX half back Chris' of to the more expect the of just little and half to go first the in 'XX. I get mainly it's really start year, the comments. back then year. about that's leverage a And to and we In would So

to the expect mentioned, that will it this we We of in haven't still amount begin some but capacity have, couple over rent larger significant years markets growth of the the the drive key that of done some lot And and related through the dissipate of organic invested investments added last we and we've experienced 'XX, wrapped costs in the I those costs. next we've of growth-related other incredible decline. will of X But we've M&A years. in as amount over that volume transition a to will start to

going Combine us a gradual. to is at decision it's initially. with key EBITDA huge And growth our for Texas, is so diluting that And adjusted be in to like a accelerate in strategic enhance investments which growth which Hardie's market. platform improving Texas, key and they're margins

I of So bit for X.X% above a we're think little XX%. the full year

around delivered very If what we'd XXXX, In to of we you in delivered dilutive be be X%. excluded adding XXXX; Hardie's, the we'd impact close X.X%. we initial

organic driving that then this XX% about just the our significant adjusted time margins improving EBITDA EBITDA margin base revenue integrate volume percentage. we really at a as through it's of So over comes lower and the the investments capacity

Andrew Paul Wolf

XXX basis you of think, think, speaking and were, I margin I acquisitions Boston the them had where but up, just other similar that Hardie's able you're smaller, points in acquisition. know to And I

penetration? Or needs experience to really to want or of business? you right percent cross-sell how for latter, more goal sense what you're the give the either the guess us that is what move it based customers to a happen So way? acquisition us that which give a the of is modeling like more but the right sense just it rightsizing Just more is and cross-sell it to on of what is I the could that it you

James Leddy

is market unique. Every

thoughtful much which you first out businesses So and when biggest San York you following our market get acquisition we very a make obviously, is and the a an distribution our business one we of before in know, New look to typical long at and -- you're Francisco you've go that biggest to the quite for the we've more We unless very, OpCo. business own. you, time been all through as is business. the us next process annexing our effective it's had market footprint to is big

If distributes over strength. of streets you're most typical always market. we're of our a in destiny, marketing the and own a control our X,XXX every distributor, company vehicles also day, We our say we're which bringing products wonderful that's we not. own that to With these

us our is doing facility, Texas have And the reasons in to phenomenal. up of have in opening since we're of be them X, of case to Obviously, past to market. serve which X various talking move for want Texas years. is of we the are the So They big cut thought and More to Texas. a a -- to customers it, Brothers there. process Texas, going know about to lot people moved Texas now we continue an Allen

that's sales like of there's amount X,XXX thing the was we was that nobody some and the artists to because to it really We together is business opportunity bought moving. around there Texas logistical a We like does what ability have get nobody warehouse -- who but which noncore force, buy enough great puts get realize train the to expertise small in Chefs' an with a the the vendors was take and really the to one we which has when Warehouse, put world just some Chefs' in time. building acquisitions businesses, from and together

to more We're was as similar. and not and great they of to you're go warehouse, Hardie's, company. Chefs' in years, looked we wasn't we've So market. which investments. Chefs' anywhere a a us XX near in to X, them I did they as towards company, we many their that New they're shrunk that's They're And England to think more on great like line their We're March. a New bottom business trucks. look most we going a right margins marching Their where and more year And more selling And more Warehouse more expect really, watched and made we great a changing but at what markets grow We bought Chefs' in we restaurants. we're independent as this start And trucks. their Warehouse. do starting our Warehouse. Chefs' the Sid when to really businesses. next England, you've in products people, were starting the our it now. with and over Wainer, these add see was products Texas way that's And EBITDA Warehouse growing to We're the the for years

on exciting So return drag to start look look those you look overall doing capital. I more at your great, own you your start percentage open add at and costs a building stadiums that's you're we it. seats and it's stadium fill more it on business. start money. adding it stadiums of But have to a them, as you the are when It's your bunch And as way times. the do great to always to seats, and to you the at I as get and think investment. we seats And a pretty

Operator

Saleh question comes next Peter of from BTIG. Our

Peter Saleh

some evidence Are that we their that you Florida, York the mature up? to to percentage and how want that versus markets some less organic needs? seeing on now markets and/or their pick the of in have the growth needs of Chefs' you Texas you're buys like Congrats in any the evidence customers I ticking seeing of of City. starting you of like were you -- mature about made some see these strong of about did customer Are that New of are past, starting purchases given the I quarter. from up think a ask from that? their a more of some terms less your needs their investments some guys Is talking to

James Leddy

Yes, absolutely. going more I little planned. I as right couldn't am than that a be now things optimistic Everything takes time. are

warehouse. the we very systems to items fill setup. more And pace. get still the inning. to day, the is we're got warehouse But start rapid Florida in that growing customers And selling first we're a the to and we had more You up every your in, as at

is X has because over top didn't the So longer so going a facilities. we taken years to next Texas. Florida the Texas have markets is and little be X

now So right starting operating out. at to multiple figure it facilities we're we're as

see absolutely, you're Antonio, country the we day, food, itself. get You've a team a these and Texas to hire made with understanding place. get it's you've got the we're customers. and headway But go really start salespeople when to of these a to enter is got lot large Dallas, against Houston. you've making we San how sell every long-term encouraged got starting got we're who hitting even But we've to growth understand Austin, as big the It's competition. very chefs to in probably you've start though on reason the Florida It's of items thousands items market to a reception investments market, we sell is of so markets, and to more your X a comfortable

Peter Saleh

the really should maybe to first cadence on Is aware or And And the mid-single-digit be business? or beneficial a Jim, guys of any said on half? I'm guys second the that change half think inflation, just understand we the that might in in to don't I then be to the just just, should low calendar inflation. inflation. first expectation any quarter that are then anything about there's out lower or the thinking year. like for there higher you to detrimental you know this we if be trying shifts there in half first anything I forecast versus

James Leddy

first are the that really no of now. quarter, there to terms In calendar come right shifts mind significant

call really there. So to nothing out

control don't hold In demand, control price we to which terms our due to potential of the the and which into or but we due managing range the through guidance. well, as in price, incorporates our the inflationary guidance on macro variability as it deflationary a range once we volume adapt price in year, customer environment. environment an and to trying of whether again, to it's move we The don't we of built inflation,

it's into we we I think that just guidance, as incorporated move of So the adapt along. and range manage and

Operator

from comes Street Lake Ben Klieve Capital question next Markets. of Our

Benjamin Klieve

really wrapping Congratulations on good up a XXXX.

really to year? a you're compelling you Throughout on the you the you your Are in make throughout for look here And there Just an and question to off 'XX? what XXXX? acquisition high-level you your investments this question this still investments, potentially focusing done could my where remains potential Or Jim, that 'XX. in really acquisition of legacy in kind could one in in and for balance characteristics what already you, gas these I make to your integration of integrating is about pipe appreciate call, focusing acquisitions context, is comments of of on me. have

James Leddy

of focus we of we've measured get the the now being capacity. we'll all companies probably created. against; the to Chefs' By that XX% Again, the shifted end the public had And more footprint. guy the year, have little acquire to we're has on

the growth. always we're of focus hypercharging course, opportunistic. And on been always is opportunistic. So We've organic

going and do major what our So looking already anything territory, new we're forecast to we've CapEx not to a be. stated is in

fill -- But some EBITDA buy in, our to profitable speed on us focused pay could down the back our to why want of some creating some don't a march extremely it. capacity, grow we we're more these want cash, goals. there's acquisitions which debt fold So build not we shares. up be it. up to We tuck-in could and maybe that's and that But help and of on our all little into great

businesses in Angeles, whole hopefully Los in good now calling, the we're opening major our capacity So of because bunch into and are consolidate have Francisco, San in but lot we processing Florida one of drive looking. facility. People state-of-the-art said, this growth always our quarter, new a new to real we're we finally to focus markets, is is going always the organic right like a and facility

things next a we've of happening year. So in got lot the exciting

Operator

reached We session. have of end question-and-answer the our

Christopher Pappas

you Yes. team And accomplishing. couldn't call. look everyone our many I and look for many; we to our for and the call. things joining we're Well, everybody at from forward great to Chefs' joining team next this thank forward be of what prouder

a day. very great thank Have much. you So

Operator

Ladies very sir. and you you now may your much, and Thank you Thank for gentlemen, us that disconnect concludes joining event. lines. today's

The Chefs' Warehouse, Inc. (CHEF) 14 Feb 242023 Q4 Earnings call transcript