CHEF - Earnings call transcript Q1 2024 | The Chefs' Warehouse, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to The Chefs' Warehouse First Quarter 2024 Earnings Conference Call.

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

Alexandros Aldous

Thank you, operator. Good morning, everyone. call Leddy, Pappas, our today's CEO; Chairman on Jim and CFO. me are Founder, Chris and With By now, you quarter XXXX should have access press to release. earnings our first section.Throughout www.chefswarehouse.com It and non-GAAP presenting estimated both and adjusted including, and income the found EBITDA, also historical measures, call, adjusted at adjusted others, share. EBITDA can Investor will net be financial Relations earnings historical estimated this among be as conference we as under per and well with GAAP used These may not measurements in accordance titled measures are differently calculated financial similarly by and in calculated be companies. non-GAAP other of to formal our including will include GAAP press comparable non-GAAP performance. everyone I reconciliations statements Quantitative in we discussion today regarding release.Before our remind financial of remarks, their most today's part statements, appear financial measures measures forward-looking need directly estimated our our begin to financial that guarantees not put performance, are undue statements on therefore not them. reliance forward-looking of you should future Such and cause These statements to to and from numerous differ risks are that subject we actual materially results what expect. could uncertainties

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

Christopher Pappas

thank and for Alex, quarter call. you, Thank earnings our you all joining first XXXX

as increased in out January business XXXX steadily revenue seasonal activity March. trends and quarter displayed coming cadence First typical February of

to quarter trend like Chefs' the great thank the supporting XXXX. for placement domestic, start a customer and low-single-digit range.I inflation to operations for continued our functions all international to new units, in and business price growth all teams and first during the aggregate strong delivering sales and Warehouse would to Our delivered

flexible customer quality the customer points. of driven Organic by net our few specially recognize also approximately were I into include: X% X.X%. case rest As which products, and and pounds of year, from was approximately profit our unique increased platform.A placement their support in of X.X% quarter.Gross were growth center-of-the-plate prior the of the growth in than XX.X%; growth growth sales higher year year, XX%; -- first and X.X% to we margins the head for up the quarter XX prior specialty specialty unchanged year-over-year. the category like in Gross the XX supplier the distribution and of the margin approximately organically in first center-of-the-plate gross in our of highlights second sales; XXXX, specialty and would partners diversity category while confidence margin was and over basis compared quarter increased quarter to high-touch, first as organic points people, basis

consolidation the international teams platform and loading operation to protein our This Massachusetts our of to consolidation California, during during in Foley second Allen distribution specialty our of work Richmond the domestic completed operational second processes our operations our selection technology-driven progress. We are few initiating expenses years, half few consolidate quarter engaged enhancements with facility past to Northern processes the continual customer-facing our and quarter, the our across XXXX first processing consolidation phased-in XXXX. well and markets. product margins Boston the made gross and harvesting impact project located facility the provide the distribution profit minutes.As gross multiple overhead will anticipate of Jim our Excluding the quarter. and specialty England.In improved basis profit XX on of continues phase Bedford, focused of ] increased have more Fish reduces on new few operations the operation. we margins growth, key investments in approximately points and routes and our new year next move the into opportunities in we we highlights a in our are: centers, include in digital of continued move as versus Hardie's, implementing prior improvement streams facilitates the These markets.A into detail [ seafood New and produce Brothers into during quarter, in platform with distribution our cross-sell as

distribution specialty We in in expect Texas, operations majority forward. operational integration efficiencies continues the the of see to of our to starting XXXX.In Hardie's and move emerge

our initiating and efficiency, Houston. are optimization In addition on in improvements to progress making teams driving cross-sell in opportunities operational capacity

we as to the customers continuous represent suppliers building ingredients, thousands to will not organic as specialty and forward.These this all the business that, over teams more of detailed expect and Greater and internal growth our customers market are a ever-evolving our update in operational at reduced operate.With focused Jim Warehouse value-add with in transfer as it We growth in and liquidity. turn our Houston provides on brand facilitate costs for an aimed proteins artisan and within platform that inclusive, unique efficiency produce information marketer of on to model financial quarter premier well to the are we and the on the cross-sell and discuss going the growth and I'll while protein produce we region specialty distributor serve.We continued providing projects, Jim? Chefs' for

James Leddy

prior to category pricing, profit quarter to the compensation, in sales I'll in the sales higher the associated as approximately year million And increased quarter, acquisitions sheet costs, driven quarter.Net $XXX.X organic sales for balance was everyone. sales investments, growth with facility increase a Thank ended the operating to the XX.X% -- increased $XXX.X first of of facility costs and percentage by in and current X.X% XX.X% of liquidity.Our distribution from $XXX.X costs benefits, X.X% added which a as and and result and driven strong X.X% of XX.X% amortization XX.X% for results the was now of of XXXX. first quarter. were an operating by versus inflation increased XXXX. to March quarter including XXXX sales, the versus and center-of-the-plate due on for versus comparison of higher prior provide year morning, million approximately the XX specialty for approximately increase an XXXX versus approximately XXXX from the first and to the our year inflation driven expenses the the approximately current our primarily for XX.X% to as the acquisitions, first $XXX.X of in selling, quarter growth million million The sales administrative for The the quarter good of of the general consisting well by expenses sales growth of XXXX. net expenses quarter XX.X% teams $XX adjusted the the million the was to for $X.X delivered compared of expenses the net contribution of XXXX quarter million in first from across quarter first sales, to first our procurement, income of the higher offset $XXX.X And and depreciation first income and of points our you, primarily prior XXXX and quarter operations versus quarter.Gross of the support XX, XXXX. operating update Chris, XX.X% first quarter.Adjusted first inflation to for profit, gross increase first year the quarter provide $XX.X million net was of first Gross was the XXXX in quarter for million was compared was quarter quarter.Income quarter operating $X.X XXXX.Operating $XXX.X general million expense million and quarter, profit for growth during for prior quarter.Selling, in category X.X% increased margins of XXXX. in partially our to profit quarter increased tax categories first dollar expense XX.X%. administrative gross basis The compared for

comprised for income million per a million for adjusted compared the Our At quarter sheet liquidity. to $XXX first share or the first share quarter the per Xx share $X.XX of leverage $X.XX diluted year or goals quarter first $X.XX for of $X.X balance prior the $X.X diluted facility.During Adjusted $X.X the under equivalent XXXX.On million per we end million to to $XXX million, for the of share our quarter, shares. of the debt outstanding of the year-end or million part EBITDA to of availability income XXXX, quarter, cash per progress was non-GAAP for $XX to we first diluted year first was achieving had in of our $XX quarter basis, first our of net on we prior XXXX as and repurchasing compared income update million liquidity million quarter.Turning $XXX of and of $XX.X GAAP transactions our diluted compared the had total following first and of net million of $X.X executed for XXXX allocation capital towards quarter. X.X first $X.XX net million XXXX, or $XX.X the ABL an to the million net

guidance the inclusive be and XX.X and year the plus $XXX SOFR to for the dilutive be to for $X between our quarter fixed X.Xx that and we repaid outstanding, of X.Xx March diluted to our addition, be billion fully XXXX adjusted guidance and those of purposes, share trends million $X.XXX year our full As full Based convertible therefore, of as we we by the $XXX was of notes interest term and providing in million will XX SOFR million quarter, approximately net to a credit $X.XX between compared XXXX.Turning the outstanding to shares basis business, are XXXX, shares quarters fourth reducing of resulting net of repriced reporting total selected.As profit of common as XXXX $XXX $XXX term a X%, repurchased and expect X.XX% this approximately current to in adjusted gross those million for second and $XXX the the in in financial and million, in costs both the million we estimate $XXX XXX,XXX loan cash We of SOFR for for count debt of million, points, of to spread on March million loan.In the spread billion, cash the adjusted from maturing net fixed approximately year as XXXX, we the note, was expect debt full equivalents, range term of plus reporting during spread be periods. XX, outstanding on to to on for to shares, in depending and XXXX, a of $X.X maturing sales first follows. XXXX, XXXX. reduction lowering third EBITDA be EBITDA XX million.Please December our balance year approximately maturing our we a approximately all the coupon of of XX,

the the Operator? quarter fully expect year XXXX for For the dilutive we in of the convertible quarter XX will expect this remaining open reporting count share fourth we to approximately maturing periods.Thank XXXX, you. shares the notes and point, we and be full fourth the And therefore, up to year questions. million be full diluted and at to

Operator

first with from question Our Jeffries. Instructions] [Operator Slagle Alex comes

Alexander Slagle

strong best think, in gross extends mean, an like XQ. you and first momentum I Really profit. in gross seen on I reported we've the on apples-to-apples the X the basis margin, years quarter

that's to So the the drivers that and could of some as degree you just if curious ahead. of and what's dig maybe of behind we some look into changed sustainable kind

James Leddy

let But, really the focused margin on Yes. of ever yes, profit jump since Alex. gross question, of summer I weird coming Thanks gross as and summer. that I'll things start Chris for profit mean, of XXXX, and normalized I'll out coming out the growth we dollar in. kind

and of strong reps that think our continue improve momentum with margins helped year-over-year sales relationship end digital, data, of tools, that us last still I has more the year. growth the the just really combination providing in we had and our more maintaining sales at

Alexander Slagle

so expectations mean, in cost the first And ongoing I mean, your we reported? be mean, of degree is know, EBITDA you've I I the year. least our at that Yes. and margin it's of OpEx, we'd long there's highest it's the more was now And kind half to the with dynamics what the for the of what like I even Because kind first with first a time. through working on in any this through higher even other in the don't really I expectation just headwinds seen given be I've seems OpEx, seen quarter? Or quarter, with to -- the some in know Okay. line

James Leddy

did I quarter, or year-over-year, the first one line we facility in expenses continuing investments in ops a we operating And driving built higher but the year. lap during they that's And by other in expected. our that, that year facility back year It's great is and of investments mean, last half with the increases right and in expansion guidance. where the Jersey that Seattle, the last well.So into market, made what in until mainly The those really in your driven did Yes. to that's don't then point, And quarter. summer like main until we expected OpEx but the this bit we first the we moved won't we as lap came of we teams were what some Philly rent in, of our the expected. fourth a We year-over-year, job the of in the Florida rent X. all Southern the expansion half year impacting the the little of New summer.

Christopher Pappas

Yes.

I think, Alex, to just Jim what to said. add

If in we're facilities, you we we're investing look and in what keep think investing I the people. years, last we're in saying that few is investing systems, back

more most We the and best customers a more the have little has all more competition. high our into clientele think The independent prices to sector happens insulated. preferred really, to of bit think doesn't at a little raising $X always maybe again, what and at we're in only more consumer continue a is and end. little now to people restaurants or a $X and traffic. our much as And very get where approach we of the really we we We sales. differentiating be down be our our we're sway right I and of maybe the and is, are one there's And think think and what for it.And than think of I And business lot development add rewarded the the economy. QSR, to But on going mercy economy, focus partner seeing the market We to expendable the it. more as income. have in but goal we're up away pushing higher-end more I really a

hope quarter and anticipated think kind came -- we we but that So we that ball, don't in continues. have thought that where crystal we of had the obviously, we

Operator

comes question Mark Carden from next with UBS. Our

Mark Carden

of kind little last on a that So bit. jump to point

backdrop little just You you pricing your any of at any to the guys talked set it lower about changes insulated customers being different Do seeing overall? for Or menu competitive your any are customer a segments more economically. their pressures is respect to Are you prices? for in distributors? guys with your all facing think

Christopher Pappas

I've prices. if restaurants lower know don't I Well, ever Yes. seen

about. So a you're Tuesday, I talking like hour don't get country which that's going part know Monday, happen. of Maybe or incentives if to Wednesday. all you depends on longer It the happy

was coasts in customers inflation in really more I customers were middle a that weren't of to independents X with of and XXX we our traffic. than we can the higher-end And tremendous of that growth. think do a turns as all some customers it's over more the we all to the last pace many than speaking X with especially going or would just regular out in night, and of it's concerned value pace. of back ago. year And are but where chatter years, think there or steakhouses. The they -- steakhouses of restaurants, little that X their we've about a maybe are X a ours find normal more turns trade restaurateurs last offer they heard -- how I I course, what But turns of we that the going most more good affected think customers maybe the went well. or I of tone today for you've call.I the X to blessed think amount And mean, the the into as to saw think and is clients XXX of bit.I I we I out price, it's years country. that than think kind and our offer there massive again, some spending. for lot see these down amazing go And to space more the think a X. There was expectation normal backwards, of where value think and expected we're nobody they'll were were the doing year in little by 'XX, they seen had different money like customer that going lot COVID, think of coming or last spending likes XXXX celebratory more a I a of were past the kind who are

expected we if to of I a seen tremendous pace closed.So winners the getting I when customers a there'll Obviously, with go out next to evening we We've you're COVID. saw pace, we COVID. going an And that and XX to our new coming see going it's of COVID, that, be never more amount losers. that which So and saw for back was don't want again, openings, all be happy with were normal kind see know ever we're of kind delayed to Honestly, think back out. what we years. during with would this to horrible of we what

customers there we're ago.And is wasn't gaining, benefiting are for choices competition clients think lot the have where because X and And seeing X more more or more think -- we're years I I think maybe there think, I cities. -- that many them in and our think maybe many more customers there neighborhoods where in -- of I a customers. I

some older more similar in even volume. we're might and though with our customers areas, we're bit, seats So of down gaining that extra a be getting

optimistic us that us purchase. the going find have most it's customers as distribution we're that to for and to compelling the large choose of job And our is So to a share partners give obviously balance. proposition their

Mark Carden

Middle challenging? how the holding gotten it context. some has immune in up of then adjustments? turmoil continued region? Has the it Got East your largely sourcing remained helpful any outside That's more amid of is it. Or And some business

Christopher Pappas

I think was out too fourth good of the quarter. the only coming challenge was business almost

chose travelers, lot when -- and and I more it we a a lot headwind homework, East, think to Middle European major the was in become and we more that's to enter when and the travelers market, we big thought of that continues again, think the the destination from we storm. business did going had perform.I of a of only world was money the to chosen that

downpours -- of business If they coming. Sea weeks, that streets, was meet got flooded been building few a kind management more over that demand and we far the as a past the the in Red you They adding bit trouble days to we've capacity of that getting keeps class. a continue few torrential them there about as hit give and of is first that we're the team product building but headwind, followed lost the additional excited But so of execute, business. to on can with the they in the and some

Operator

from Saleh Peter question comes BTIG. next with Our

Peter Saleh

about complexion great for year. growth the start a on to want of the year. this didn't to ask Congrats I

organic to growth little is X%. X% here Your or a over closer

organic above to long-term X% well the growth. that's your think algorithm, X% I like

little organic year? about bit, sustainable that for year? how this And balance do rate? of us you versus acquisition this can think a how we just benefit about help is growth So think the How we organic do out

James Leddy

question, Thanks Pete. for the

has this acquired In growth, past terms of the of it bulk quarter. happened

So we from of Greenleaf the the the bought the big right Greenleaf line And were acquisitions did quarter. and of second first the we top really year last middle in perspective. end bought and X Hardie's Hardie's a quarter, we at

weighted. it's So really heavily

point in XX.X% organic wrap year. acquired to the mid- this decline and guidance was of range full the You for quarter, will the terms X% the implies see about X%, of high of organic, our maybe kind significantly.In that our

decline the X%. So it bit will from a little

growth Now we're perspective. some of does, inflation that the I think our algorithm now of with right what comfortable will depend guidance long-term implies kind and price, it organic from but an on

Peter Saleh

on happened. term? What near maybe then I currently? last a currently? the you market the you're are spring the medium seeing there that And this seeing What what I least Great. can expectations, in the you just and time, at comment year guess, protein some was around bit summer, are think and to little into volatility

Christopher Pappas

confuse it's Peter, us Again, good that a would what own underlying market. that by say think for but especially we right? get down, in -- I we trading -- prime, we'd sometimes Yes. you always choice do you somewhere So it's predicting be breaks lot would at driven that there's markets, upper It's in prices. of some so Bermuda. were we'd it's if commodity -- floor retail of it's The -- predictable, is factors kind proven if the a the retail, slows and buy, which

year-over-year, of think comfortable low we a think had that don't major, of so major really year's drop inflation learned take few we to unless a the But position. upside much larger prices first take positions.We've isn't over that the quarter. lot you're there points I I last a

If big I to in risk that the think try of and we take to buy But wrong. customers market. do for a we'll that we with them, us position want So avoid being have go it.

James Leddy

the behaved Pete, the in in QX. season barbecue start prices going then see while in you're up as how some they've In in of -- QX do year-over-year words, you sequentially prices ramp out of declined the I'll they QX, And to other we market kind summer. kind that of historically. them in behaved historically, just as add had holiday inflation, season coming would protein kind you normally of into

be And so still that's to determined.

Operator

from comes CL Wolf Andrew question next with The King.

Andrew Paul Wolf

included. than the much this your much the business less and the taking say stronger would is through most restaurants organic and core street? sector, competitors of to is ask more How sort people consumer also products behavior being selling on selection, in of down the sort of really share better their sensitive want base well inflation up being to sales or your and either going customer the so more you I positioned, or versus better just of just

Christopher Pappas

choices, it. hate seen I upscale down. portfolio and to one's immune casual the fine They of we'll they completely cycles. and call is it, to of our into we do to do business. a Texas, new I diversity we sizing] really have casual customers piece that I of way, think is not Hardie's investments Andy, our ball of a industry And a that. [ and our think, now have get we've lot, Yes. And I the best business be expect the Rodney producers.So great our headwinds almost tremendous all kind to expected well. are I've lot expected to don't a of more years, story. after investments to prediction, Cassandra's share. products, to all last our and we've close our economic crystal in this public the emerging give the taking we to I company turf.And negative products in of out investing But with think seeing and the but high-end, a of XX,XXX getting we we have a XXth follow We're doing high-end, want at lot every respect continue comps. customers business. we they to year We Chefs' thousands go we artisan we into We talent. facilities. continue right went we and some that going we lot in the invested that we the like upscale understand but We're have amount to anniversary. made it. We get no We've invested and a that more Dangerfield be turf dining year industry. being and a were our technology, to companies we continue where And Yes, bets. Like that there is more grow cycles, customer And are huge space. produce, investments, outgrow that's their said, super we've will to XX hedge. protect know from plant-based smaller to concepts.So are our we and for no bought call of like the obviously, made teams a we're I kind sound to expect who most make of of that sales people made And to Chefs' in the over get at really bats but think with grow it and and that in investments new add items us with We're really And continue big opportunities, come our rewarded. more the and go to the

Andrew Paul Wolf

really It's Great. ask other one not I Can appreciate that. a question? just I follow-up.

quarters, I good in it productivity, hear pretty I sounded felt it about you past You haven't I labor think, mentioned at the know least, like where it. didn't or

hiring, a of update I it's just term, cost give picking. that's structure turnover, in structure? invest into, -- you So us thing, fits cost can And training, you an think feeling where know going your automated how you're labor separate sort but I that productivity? longer I are -- going long-term guess, you where about some mentioned to

Christopher Pappas

think -- and a but greatest great COVID new I keep and we're and was it make we product. people, they're level of still productive. the It's our challenging, always Obviously, more word People to a challenging. place are trying investing asset, And Yes. process, to getting it's more work.

and especially training. new to as areas into the more think -- it in, training, invested in team, we've in will get I more invested it's better we've continue the

I think you have to.

It's people You lot for the or you're industry into that people right?So food a of graduates not coming to really a go bankers. the of I industry. I doctors say nobody into comes new it's really lot and out in accountants service, would sales. hire have or -- we school want like and looking are says, out

you we have to coming chefs of to We better and in train a to make that matter have work have technology years does are people to that job. in business. want place in No a for them work are of take at that great lot that stay it it their you for it's make lot the you to and have other But get the better them because positions, have, sure the because a how us people you and changed to careers. much we them industry,

So what it we think always and we really to do, it's we a headwind, get but and we productive. continue more well do

James Leddy

add operating we're tech-related We're go really -- facility Andy, on New through doing inventory part process then costs on big X leverage routes now. about years, X-year reduction the on doing next just are Northern consolidations.And on those a England, in improvements talk when error like we I'll the plan to rationalizing of part consolidating through lot the Florida we're impact gradually California, as of our a doing facilities focused in in and Texas, consolidating management. getting the increasing is that labor as we that X labor and and

hopefully, our And doing And and procurement down well. job more it benefit so as that. the we are teams teams of great I starting a operating get road think our from

Operator

comes The Bania Kelly question with BMO next from Capital.

Kelly Bania

plan expense on this that coming bit, of the you or whether update some on a can have and of pace curious time changes for California year? Northern expansions, was us to this touch those be it the the if you to outlook Are wise that wise those little starting on. going facility and on just but cost and any others we're Jim,

James Leddy

outlook. the to changes real No

I little the a our -- first Northern X weeks expect we we separate of as finish the phased-in building have the half we think in year CapEx to front-loaded in the of start of in and facilities. consolidation California, a bit few

process.We XXXX servicing spend we the in very of remarks, year expect we're efficiencies really finished consolidation, I in a to most this think mentioned thoughtful to and customers that as really cost savings because most the in rest consolidation prepared managing of the the we the logistics emerge phased-in and Florida. just our going through in of

Most will I'll back the last of So to the to we we'll year course, 'XX per get top get That's earlier. we assuming, lap we into starting hold those think, of guidance go in latter rents and of I year impact part year-over-years -- in year-over-year profit better. a year will I expect and perspective, the from our from look, half increased then an gross the line had as is stated of what and per up benefit 'XX. perspective plan.So -- the into of first this and that OpEx really our the the just accordingly then bulk

So the it's of leverage. really setting terms operating generating us up couple years in next for of

Kelly Bania

trends more spring the little a as trended you Can of but touch maybe in like the bit seasonality seeing? parts really just has the also on expected a or lot sounds bit Great. little better, It you're that moving there's spring. a always

might be real among just divergences So geographies so help And that you're seeing of note? understand far? any what us

James Leddy

the don't had to and the the we going travel would right the mention expected. that And into a March I very don't week rest to material only to volatility thing necessarily build summer, close Easter, where last see impact of but first of call last hugely would now. we bit kind of was Well, have that early but we Hopefully, expected out. there obviously, noise the we or started the summer. then or international is, around of April, we predict think where back we think significant little that nothing anything with week like April, we of the can't I we

than about say wouldn't there's talked we about. call about the as always macroeconomic earlier, that hearing seasonally we're -- anything right that the I other a concerns So environment now we would out there's lot

Kelly Bania

SKUs? That's sure Okay. of another expansions one more are that balance on I to the you selection SKU on time? Just up helpful. over new of into and the And now. make a lot that? and categories, and thoughts but more the count. there's SKUs just to having Obviously, believe, How been XX,XXX, with What's any number complexity right do acquisitions this

Christopher Pappas

SKUs business it's like it's XX% Yes. be mean the is -- SKUs. XX-XX little the It's of XX% the -- Well, sometimes very rule. careful. you is kind misleading because the I again, in to got of of a

that process just-in-time SKUs that's come I for it. demand on proliferates bigger more the expand and the categories, as it lot accommodate we I more don't every doing count think a get a We've that understand driving things SKU lot independent focus system. so in the huge we of these industry tremendous being But one is we've of on a think And of us. the of best of accommodating, day so also And amount we I that of of I base, to are probably been waste. that restaurants have the is of the something run we through we because and long.So discipline, to expanded that kind run So territories the a categories. obviously it but able what's because you customer we the demand lot have our a up the the think it the think creativity puts be people

the you SKUs that much you draw that every really And lot look buildings, in think so inventory the do a have on the out.But come duplication similar. and and where that's with work this the day category in when what's because of have of expansion, still -- line to how you I you somewhere we at have very

today looking sales product Warehouse because expensive obviously, might and continues be management So what educating to size, the get great have space, right? different is work bringing or very space for. job might I what expensive, continues a be new with in but take think staff is label a we to on does It build. expensive. different and to that category it they're very Frozen very a may please stock pack we customers that

So I wouldn't proliferation on too the get held massive SKUs. up of

Operator

Ben with Lake Capital. The Street from next question Klieve comes

Benjamin Klieve

couple me. of for quick ones A

this But hoping you X%. a First Jim, percentage way, the expectation I'm comment year full CapEx of of kind loaded, CapEx a perhaps this to of your expectations, percentage going CapEx a of QX for bit some of appreciate sales as as in year range revenue. I is front all, be of your that can elaborate on

out some to balance kind going is of play how for sense the item the year? of this Just of line

James Leddy

East have and a maybe should going Chefs' the Yes. of project CapEx to expansion, then bulk out about think facility X%, come Thanks, year.And little year, and X.X% project, the kind be pretty round we're normal the to into maybe half then this of we out big projects, the the I Ben. I the happening is it's X of is -- in year our major Yes, we a and talked technology investments bit we'll which finishing is maintenance Richmond, in our X.X% the which think half that are Middle CapEx. first or I or earlier, California close below, the bulk of then of back but

So as end. end those back higher finish the on we be of the end, be third half X year, quarter, of the projects to this towards half lower first the of year to expect the that the on and

to goal our be close guidance us we've close put CapEx. of to we'll million And I land expect $XX of range. to range, million we out $XX pretty our this revenue. to So X% think year if within that I within that of stay of

Benjamin Klieve

Great. Great.

steep know get I'm If your this. a then regarding a any you one in last been how first parabolic has issue for in decline to it's guys business, effectively able of huge element and cocoa second back this in the or I'll this curious just navigate going the me, kind year. a throughout That's but so quarter the And here queue, there's I far been here So perfect. just quarter? question not year. product-specific of have

Christopher Pappas

in what's just frightening still chocolate, chocolate And the for demand a market. topic. desserts cocoa good is it I is it's mean very that the Yes. amazing high. It's a very, happened little

plethora think the it's choices stop carry for to oh God, people concerns a to on bit we -- enjoy We desserts producing look basis, the there chocolates. the just And eating -- they continue of are a affordable. brand, a more that there. doesn't many and I at switching little different I continues is of our is little some a types demand people something happen.So that in were, my going -- do customers. offer something chocolate, still and base weekly are customer But

Operator

Capital. The with from comes Brooks next Todd question Benchmark

Todd Brooks

of about First bunch celebratory here, the advance -- in your the question, with a touching of the of the across I'm just roll we're from window we then business are bit events those hearing for Father's into What into Mother's customers? and base of season the windows strongest or bunch obviously -- the slices Day, you wondering, summer. the one call. Chris, going stronger and of a you for of about the X talked Day, graduation, customers your a market

Christopher Pappas

Yes.

events coming I of of think happening. COVID. I'm booked, in hearing out unchanged we're is what that that Obviously, part events were are nothing happening

sounds So the we sounds Again, that. kind expected very EU strong. very of strong. Vegas

christenings, weddings, of graduations. of lots lots think bar mitzvahs, I

side So think catering strong. is I pretty the

this at So any point. hear think would anything different to cause we don't us that

Todd Brooks

Great.

maybe Second just How about the year? bit inflation a the quarter. it in thinking question, I shared you has than restaurant year. firmed inflation brackets Jim, But on the like second ball up listening little I seems QX you're going know maybe much they inflationary -- as and the we more to don't know, are want maybe this environment the companies, into looking inflation. crystal too then first you for half X.X% around of expected

Christopher Pappas

environment? Are deflationary you saying

Todd Brooks

Inflationary...

Christopher Pappas

really year X yes. Inflation, Yes. protein different. Well, -- caused point from last caused over

think specialty about inflation. specialty our I business points fresh X.X -- only was of

really going down. go that think is I So factor. labor to labor don't the really seen the cost of we've moderate. It's

continued to that that labor you're in I it's high embedded So think going costs. pretty have forecast now everybody's

going freight the for and of we don't deflation on transport deflation deflation watch or But in something cost about asking of and of either worried this that see anything said what's or obviously, us fuel. think cost That's drastic point. something really we happen to way, goods inflation cost at and world. the to would the that is make happening while. we have -- were mean, I are always a you inflation.But why in the there's going I about wars we see So don't we

Todd Brooks

proteins driving to Are the seeing it strong saw? in you one back that was complexion kind you beef that And is that of of can that that was with final what's Just switch are us range. growth? a pound other you the actually one. Great. it give there. Center-of-the-plate stabilization Okay. up quarter, very color sequential I in Or guess that? X% any --

Christopher Pappas

of chicken. best sell of mean I with Yes. a the what steak too, think pasta. We in tremendous lots we any of pasta. but continue we lot a see thought market. demand wouldn't the gluten-free the the I and across a is we hamburger there sell We We vegetables, board. sell amount sell amount started, sell craze to of tremendous we

mean, kind So -- to not customers they're back.Obviously, were like serving to They have think coming continue -- week a and And menus people to many be We back. over the to have a that's the in, spread house Do and seeing but many, day. are the diversity keep anything likes something creative, well. favorites, restaurants restaurants, menus other do come the about past in really Or talking and choices. we continue there's trends.So constantly our give They're shrink? the people in change going they I demand creative little independent think reason I this really to making everybody years, I There's to constantly it's out. we're week saw neighborhood of to for few what out. it patrons that interesting they're think we same the different. more their big

So trend I think that continues.

Operator

for this call management closing like back would At to to I you. turn time, comments. Thank the

Christopher Pappas

we for and our hard thank their earned, again. we're great very is I joining join think a much. work, forward team to Warehouse's our you Chefs' we success to hoping well Well, they're quarter, next call and everybody and everybody is -- look Thank today. call for at

Operator

today's teleconference. does conclude This Thank you.

time. your at a for this you You your Thank lines and disconnect have great day. participation, may

The Chefs' Warehouse, Inc. (CHEF) 1 May 242024 Q1 Earnings call transcript