CHEF - Earnings call transcript Q2 2024 | The Chefs' Warehouse, Inc.

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Operator

Greetings, and welcome to the Chefs' Warehouse Second Quarter 2021 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 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 second release. Relations found presenting historical be financial and as income and measures, historical net under also adjusted we others, non-GAAP at and among estimated per estimated can conference call, adjusted be the It share. adjusted both Investor and section. Throughout including, EBITDA this will well www.chefswarehouse.com earnings EBITDA as accordance companies. Quantitative with comparable in measures in and our These may financial today's differently measurements calculated most GAAP are financial calculated GAAP similarly in appear measures press be not directly non-GAAP measures their to used reconciliations release. non-GAAP financial titled by other of

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

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

Christopher Pappas

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

moving continued as displayed first demand as typical customer seasonally revenue stronger expected, and and months. to profitability a seasonality quarter into quarter Second solid second pricing build from quarter

international service. effectively across customer divisions delivered and and with providing operating and high-value pricing our while domestic manage and high-quality placement product item strong growth unique customers markets Our

from labor-related broad diverse teams our expertise support as and sourcing, to sales, processing to our growth culinary organically X.X% value-add growth all quarter which specialty customers the of sales. was prior and coming together chain, Specialty organic up extremely value net are in the our deliver managing and of from functions were include and supply pricing, as highlights second assist with well sales XX.X% leveraging costs. A We approximately over customer of unique development X.X%. menu of proud to and driven operations customers, product Placement X.X%. our few X.X% case growth year, growth by

Hardies $X.X billion progress which our approximately investment $X and of XXXX gross remain to these is targets. to to place with year XX approximately profit approximately product in year teams customer than quarter. the total in in second grew higher we the the important XXXX, key margin as to Excluding in in gross necessary our infrastructure categories, center-of-the-plate towards specialty achieving market second have more X.X% the grow will pounds prior highlight provide XX investments and footprint, sales cases attrition in increased put and margins of Gross force in detail were provide and $XXX a million on low-margin moments. We on the the were profit year-over-year category quarter. Organic prior towards revenue second million. category X.X% basis few EBITDA center-of-the-plate five-year margin specialty It to quarter Gross points. points increased to basis focused the flat billion compared approximately essentially adjusted goals, include while $XXX Jim making year-over-year. of margins approximately

operating also in as synergies in to includes These centers future expansion such completed have infrastructure. This protein create one future California XXXX, and distribution or our include expansion Florida. and the in Seattle, Northern our baseline. high-value a processing in as facility such Regarding feet California. approximately distribution acquisitions Southern of of Dubai, recently to square investments the Since added growth capacity, facility million increase approximately we excluding XX% XXXX markets

multiple the our first During and a operation. facility Brisbane with the consolidation second operations and the processing of move quarter, we processing completed of distribution phase initiated

the We of with complete next to a the during full completing expect the the move on first third during quarter consolidation quarter focus XXXX.

to expect growth for technology-driven provide We the labor and room route, efficiencies region. in future with

unique force, year-end in since increased excluding investments sales go-to-market acquisitions our per Regarding sales by our XX% we and year. have strategy XXXX, approximately our

and year frame, per East California, such markets time Florida, same XX% investment the to by high-growth we approximately as and the our sales on grown force certain average. Middle Over have XX% of our

tools continue growing and operating and market customer category to addition, support share new to markets we penetration, invest across expertise delivery. our in dollars item and unique teams improved via per profit execution pricing In our and digital gross and acquisition sales

have supported mature us Our category investments go-to-market acquisitions, distribution and We expansion we growth. teams more and infrastructure marketing the industry teams focused and our in by sales a with of markets have portfolio goals. capacity, on by maturing balanced unique for categories, complemented sales markets growth high-growth feel towards given our above-average XXXX required strategy, ample footprint continued

and and XX we in world's finest developed be and by expertise to to logistically price best-in-class to have manage past a industry years, a to margins service and our investing in service developing moat just-in-time food volatile and the the chefs, in sell manage the niche For of nimble talent the world.

on culture solution culinary-driven Jim an a to on strategy for liquidity. operators. With to foodservice turn the built more Jim? over to company discuss it and serving quarter detailed information unique have We and quality focused update designed our I'll financial that, the be

James Leddy

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

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

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

of on ABL liquidity. comprised balance our an end total the had facility. second million At $XXX.X $XXX Turning under million million, liquidity to of quarter, and the in availability cash of of we update $XX.X sheet our the and

to X.Xx $XX $XXX our to equivalent make continued and During outstanding XXXX the goals leverage second progress of net quarter, capital million year-end allocation of achieving towards repurchasing debt to million shares. we Xx

and X.Xx million, XXXX. outstanding of X.Xx in year-to-date, debt. June as XX, net total million debt first of As approximately all equivalents of cash our EBITDA and debt outstanding cash approximately net approximately approximately adjusted June of of common million we shares, repurchased was was XXXX, resulting to $XX.X XX, $XXX a shares and have repaid to the outstanding quarter XXX,XXX of reduction XXXX, $XX inclusive as compared of

expect expect notes for XX.X of will to for follows: be diluted to maturing adjusted we net guidance in on million shares. we and the current those $XXX we the year $XXX are gross note, and million. billion year year and approximately between reporting the as million business, EBITDA for Please in between XXXX. to Based trends to full our dilutive in therefore, and the XXXX our year that full range convertible of $X.XXX we in Turning be maturing $X.XXX of million fully the full both December to providing profit count third be share guidance sales and million purposes, billion, XXXX for be the quarter be to financial this $XXX of estimate XXXX, $XXX

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

Operator

you. Thank

question-and-answer we while We One for be Instructions.) now moment (Operator please a session. poll conducting will questions.

Jefferies. we question have Alex of first is Slagle The from

Alexander Slagle

half recently. kind back able talk growth gotten confidence just wanted the have drivers and you have case growth case in some being industry for maybe I opportunity ask more to on to broadly have demand could you you the visibility and if like bit pipeline of to to continue a of driving organic the the that choppier. you I know seems consumer give restaurant the

So, I the give you confidence your thoughts that just wanted things and of half. to get into kind back

Christopher Pappas

Yes. Sure.

And quarter. look second I [Andy], I again, little summertime, clientele as you year into as choppy had think last last a strong think well, mean, year. when came a our I you So was that pretty the it at

-- see, like come people back I more think a typical travel. becoming to year, it's in we're saw lot think U.S. the of it's it I but kind summer early what we last of of September. And where too a roaring again from

sale. forecasting -- We talking in more to bookings, invested added bookings. We're at we're at We've so last out much third, warehouses. in trained coming out looking the see as call We're type we normal conferences. put putting we're the We're teams capacity we in the quarter So year, looking looking our lots we've and looking salespeople fourth hotel cross-selling. customers. -- the -- at corporate at of hybrid events. more see And a We're We're hopefully pretty street. what of at there. looking together. We

more reading is where unique expecting. winning And want down I or many that hotels. boots in it's down ground some and little the is think think have mix, your restaurants, And you're invested where say and in -- industry. to openings. restauranteurs it. reports pretty we're the X%, bit, seeing sector, what openings, We've where up obviously, it the business I in most our be I so good And are that's invested which to think we're new a and on So about headcounts are but build the People and product I'm hotel could continue always think lot. X%, we a see open but we I depending we've restaurants. we in feel I on of more what the also

could that where for I we're is think So be and customer in headwinds is of winning counts. winning Chef in openings, any up making the sort

James Leddy

Yes, add half Alex, I'll we're first just year. of that reporting the

a XX%, summer. placement customer mentioned to New demand up seeing XX% or under acquisition, little that been double especially Chris that to volume for terms of digits, making just in during XX%. the bit you're of close and moderation XX%, Item that's growth, the

we've the some giving made investments of that growth those paying areas sales the and so in tools of and And we're are in off. some force category them

Alexander Slagle

Got the back at you increase some any were provide if as And XQ off follow-up, potential in headwinds [facilities like half. we all.] know dynamics there the new a play color of cadence some the it. the roll unique have the timing lapse, from margin of could you Jim, around some and and leverage I

James Leddy

Yes. The implies, year kind obviously, X% but organic revenue organic our X%, the guidance the half to full first to growth. guidance in was of the closer of year, implies growth X%

if that's But because really by back driven a growth. a of already volume had remember, the markets. wasn't We had had a issue. organic we and So issue It in we summer, built the the the protein in revenue by margin half in terms of you comparisons good growth. a moderate year really year-over-year last revenue really deceleration volume deceleration, driven

And to of comping year's this so comp cadence the in that's by a of we're the But driven back versus year. little just last a really half tougher year. bit

Operator

from question of Mark next UBS. have we The is Carden

Mark Carden

of up to in segment? I swath Does to are at a creep a pretty quarter, pretty talked holding customers some pressure more it last customer remain want customers' some seeing your your about I broader bit Or dig on restaurants? customers. sales, casual So of your you you it well into this constrained are know overall.

Christopher Pappas

all really up to. But to diverse. is dining. large referencing trained, teams, what purposely extremely to our recall types upscale, you're cruise different fast casual, what go again, Yes. ships hire to call after I the base caterers, I'm customer trying business, We way super of hotels, fine

can -- of have certain So base numbers the that QSR was environment well lower-priced a clientele second out restaurant of the an any see, diverse see sectors. out some our kind headwinds customer And pretty the to good. did of the in we that groups. anything pretty and we you purposely felt of lot quarter balance as in coming We

a to bifurcated. our on savvy. understand promote, I are And So higher think that -- They they're is it's it we end, more where give little -- have pretty think -- to the customers they -- think it's bit how value. I

a certain have sectors little that down have You bit. slowed

accelerated. reports distributors reports a and other of of our coming lot of see You the out other parts and the have clientele restaurant

So that us think helping pretty balanced attack put up I numbers. is good

Mark Carden

unusual appears call And Great. then to dynamics inflation how just year? it of to about And that be pretty healthy. front? you balance now Any on the thinking are the out for

Christopher Pappas

second driven couple anything think together, and really quarter like parts of everybody you say weather chocolate by kind type are call world. olive driving categories if probably first mean, I side with of out. different what's X% of at happened between average oil the difference and on the to I I is categories look a of I some inflation. X%. there's X% Not aware in and quarter of mean the the would that specialty roughly

in excluding we X% really of those, So anything that kind you're normal forward. And point don't to different materially going expect of X% this at kind range.

Mark Carden

much Great, guys. thanks and good so luck,

Operator

The we Company. next of The is question Todd have from Brooks Benchmark

Todd Brooks

you. results Congrats the couple on of in quarter. quick for questions the A

geographic as disparities wondering and you just across If your look as you're seeing what far base, customer performance.

California a then hear of the look If that there. hearing market. know I angst that fine end the at category has some sector broadly the you Florida dining into we challenged don't the we're market, in also that crept And remains about if of

versus the thoughts and across if on wondering just strong base, you weaker that. markets, So maybe look

Christopher Pappas

across a seen really huge disparity We regions. haven't

but we on I making steakhouses saw of steaks, high-end our down perspective mentioned on I we're bit we first that where think traffic think quarter versus down a mentioned some the of call selling margin the more prime we're -- the still maybe where from higher-end a burgers good we've are a trade those. year-over-year there's

we regions. So our different across dynamics see

are are international there's And doing really domestic number of markets Our showing markets a well. strength. that

there's markets little showing out we I specific moderation. as different. are would Some that think bit significantly being don't any more a call

pockets regions. would So of that across there's I say moderation just

James Leddy

to add Yes. I'll I color a that. mean little more

us. customers our and adding relatively making it's selling up there's to I is facility. new little of in everybody And same-store in well the had we're same-store same strategy, we've reporting optimistic it seen up where numbers thing, in so we're years sort the We and small, to of think and think think -- Florida. major because it's many of opened think, state-of-the-art seeing that done and is on when that think consumer. I Florida think even sales, the Florida. I grow. there making we're this pretty in softness, who that past we're size, really for what think that we're continuing are many that our up pattern I where continue customers bit adding we've think the And daily. And we're softness softness. And that started boots the a to I headwinds go-to-market the a We California we're we for in sales, added some winning, any a we've we add so And great pretty more in ground. the some of Southern I I same in up because softness small. I in They we're just in players business, our Chef any facility I think, it's are, too,

Todd Brooks

timing on us facility That's wise you what the great. the being Can be maybe of what and doing a should it pointed markets expansion and Jim, able you second post CME? And international expansion the the to well. And old distribution handle to handle capacity remind question, done? for could sense my facility just very

Christopher Pappas

Yes. of storage using of expensive. of freezer Thanks lot the off-campus we're facility. question, actually the for kind doubling is the and which were Todd. size fairly Yes, a They space,

so do fourth the a fourth kind at And of be we'll early of phased probably third project we'll quarter, move the end then -- that quarter. quarter and the a finish through

It's yes, see feet square a So from XXXX. room XXX,XXX into into growth, XXX,XXX the XXXX we'll and in very really going growth lot of that But square feet for market is with about benefits growing. to dynamic. of most coming and we're

about it. they've excited pretty that we're grow as current So even well continue to in they market. doing space, really their been And in

Operator

from question BTIG. next The we have is of Saleh Peter

Peter Saleh

to Congrats want on guys formation. I win with sounds new you new and the did continuing quarter. ask, are it restaurant like restaurant to openings

XX%. trend think about mentioned at formation this will that new anything over this there slow to years? I all Is coming you that there any up or won't believe acquisitions the reason continue? that new to restaurant believe leads Is customer will trend that you slow

Christopher Pappas

the had could I If I the crystal question. ball, world's our little feel since just go I changed bit COVID. Great Yes. better. again, by But and a history

remember there's And COVID. delayed, even they of cities. said of right, I to out see during an coming were I you going COVID, change in be think acceleration because openings lot I of a

a dynamics You that the We add buildings they trying housing. reinvent to see a and suburbs are few change people offices neighborhoods change trying week. more home a from into real in where to more see days those where working the estate of were can

be, with to especially people building and follow the estate So money, restaurants areas, attract seem patterns those restauranteurs real to a Peter. open to to they lot of to developers, restaurants continue the where I continue traffic think them

of I'm see don't going I think much So slowdown. a to

as restaurants there home. different restaurants more of more into a to that There's too foods. maybe the into to to. reinvent have and of chefs, is more lot continue world proliferation think mean to a buying to restauranteurs, I the of that a itself is that to are that's food really There's a of trying people in from what more restaurant where are types of softness types away great I typical think I I sit-down used cook. the making lot change. believe our different of we up they go they're busy people more -- seen and I takeout. think Even when more markets, want for business. And are and getting And prepared in

down take The food other it's or you could out and could business accelerated, side or you and of it eat it's get food that could better take that that or delivered home. has you sit

tremendous outlets seeing us of of for we're So a to types proliferation new sell.

Peter Saleh

growth And just growth then sales in team investment over the past sales the on Great. or the team, sales years. annual several XX%

your Given the that sales are anticipating investment team to XXXX, in keep of or you of pace into that the kind same? accelerate targets

Christopher Pappas

mean the which and I been And them online I years to budgeted pace we we I've We're them what to better business. is last that There's dynamics think the to want will do been is think spend. much beating making I better. efficient ball more Yes. replace the going at what talk salespeople or that our do looking giving the online online is we to is forecasted more time four crystal and really of salespeople, get think for and so consultants. drum be five about that says

lot on researching. Younger people to they and to are those the they're industry come a use an so used of into app because being tools as going

more information, assisting them our curious, learn online, assisting customer, and them we to information constantly wanting they're in better to invent. chefs to investing constantly a wanting partner being menu So and development, are are in

people again, not to be because to everybody's somebody online. business, want tremendous have trying it that And do, to is for if mans we we just we're could them, still. be they chat we a information. talent partner of we you to might amount that's see obviously, work that who the see phone So and talking add continue what supplying we to And that that and for want

customers, chef driving think really it [OpCos]. we our more and choices, that all always balance for volume our all found we winning to So now, that change, like a customers to our we and for customers, it's Chef can works give our

Operator

BMO have is of from Markets. Kelly we question Bania Capital next The

Unknown Analyst

for is Ben Kelly. on morning. Good Wood This

your on are are just first, or that the regions a little bit dig is unique So more wanted those to against Or hoping specific mature high to tracking you're high-growth they and are the expectations? your comparing placement that? and can us areas markets? and markets we your how throughout growth investing consistent markets growth how help there frame Just driving customer growth you fairly maybe are in if markets in, that

James Leddy

markets Yes. a we the that Yes, -- have operating in years. about investments remarks, question, Chris mix talked we smaller portfolio, making his heavy our our more investment And other we're some been newer of in in, have mature Thanks and and and Southern Dubai, growth and growth. as for XX always higher out we've and that like Seattle, Nashville are Ben. of for of markets our cycle California, areas like that have we're Florida we always mentioned Michigan coming -- prepared investment markets like higher like Northeast our the then we've

customer outlying your portfolio any of are where your item I through markets, as that's to contribute and to category more you're acquisition, like markets. major through markets high-growth growing as expansion growing unique relevance more going the how it's items yes, mature businesses more the mean, your So around mature you income growing well it, more with grow selling higher call cities, and in suburbs customers in your penetration, markets, the

in or now. markets So we XX have XX locations operating XX

that in are lot made force markets. high-growth always sales capacity, a drive expect I we there's big forward. then And good of to a going infrastructure and investments the in we and that more growth that balance going mature think talked So we've your about your our between markets

Unknown Analyst

openings? the core customers. an I faster pace sounds sure restaurant on And That's a openings that has have Okay. currently but for it you're in the how understood helpful. restaurant seeing that Chris you then your compare current like Do guys wanted you're does levels? follow-up just of the normal than that end mentioned And maybe just seeing correctly. estimate new new maybe on to potentially, was some that to It make

Christopher Pappas

growing -- numbers we're our new think I markets. again, in Yes,

So and new opening. So for it's new our I customer between new don't us, a accounts, differentiate systems think right? a

So a I think the little fuzzy are there. numbers

Jim I XX% base increase said we customer had in think So before, overall.

openings And developers seen are to at So, that and anecdotally, look of neighborhoods, see part part how brand we those and When I development. use you are is buildings, think we've restaurants. lot all new tell Chef. I could what of reason I a in restaurants new customers come of new lot new as someone their But of what a for -- at Florida, adding look our they're for tremendous development a buildings.

So, I the amounts all hybrid tremendous and happen, are call think constantly. and where to U.S. -- live. continue pretty would going have see of kind choosing Dubai, shifting at are mean, but I people tours are I -- anyone apartments the still don't a live especially come days normal, in restaurant to don't I they're still of market, what working normal I at following as they down. right? healthy we I the we're American know they're think it's you what don't could building is office -- restaurants, anymore. People and they're homes. a building anything openings to and see migrating five see But week? So in I just are a of slowing the to to where the of market, are think back people that pace. building And developers kind

Operator

Wolf The have is Andrew of next question from C.L. King. we

Andrew Paul Wolf

I margins. wanted to about ask

First, margin Specialty the nicely. expanded at gross

just sort you quarter. is us in inflation give or was of the kind kind it And think sort of feeling buying nice back XX flattish sense for it bps, said forward German I a think or accounted management? Could of for what margin? last I or of and increase just And the mix of sustainability? you inventory randomness a in the

Christopher Pappas

the Thanks Yes. Andy. for question,

tools, to coming quarter. that just year last of started I of kind goes that's around teams have procurement We've sales been we lot invested lot after our some and a last the fourth margins our that drive and out it pricing to a we focus the volatility and think also a of year. of experienced September in a summer fruition work And doing teams continued. the of lot into improvement of management. margin lot back it's management of But of technology on the in just

example And the specialty waste teams business as so improve lead margins. that we It's further integration able cross-sell. your is a that to management of impact errors boxes we're facility selling And in then Texas Brothers our by business, our the and on our inventory been inventory CW produce having from our customers Hardie's on as built reducing related, sales protein we're growing expensive further and specialty trucks with and an not it's category. their everything more everything in acquisitions we integrated there. but good and from selling relevance our and driving the we've to as obviously, produce those more through Allen invested it's margins Texas, expensive trucks, plant processing boxes overall processing our there specialty with we're

we're So combination that teams lot continue. a and by coming it's a seeing a our good really together, of of just work lot really and of things

Andrew Paul Wolf

new leverage? some last obviously at That's helpful. a by expand again and have lot but and less optimized of are -- adjusted or variable steady up? overhead kind but little facilities, than you Okay. with looking parts is even other did the of expense going of obviously, a the over And what that there maybe not Same all quarter. Is there? the slow just maybe sort slow overall question, ratio, kind unabsorbed the of a costs maybe there's of it where to Or the outlook as impacting other But fill are of still centers business issues are I mean yet. inflation progress? expense the labor are

Christopher Pappas

We No. Andy. when it about did we guidance, talked the earlier

If mainly year, the the weighted leverage to half fourth you is of recall, back operating the the quarter.

So this got a we modicum quarter.

a facility expect big more the some QX, We expenses and those QX XXXX. facility where expect expenses and in investments year fully associated the are big half back operating into -- we'll in the then we lap of the bit because that with little in the is of but really

year similar to is because CapEx So, heavily of those we're finishing our to first projects. half more the the weighted

half power normally of rest back leverage more driven the really fourth versus of implies the than and the that. really year. towards the the weighted is top the expenses we the the year, the to by Obviously, operating line fourth guidance related leverage nothing quarter, the in of most get that. just operating It's quarter Our

Operator

we question Street Lake Ben Markets. is of Klieve have Capital next The from

Benjamin Klieve

had Congrats nice quarter you. I Jim, a here. on for question a follow-up

increase You related then the is steaks. your in And noted specifically, nice I'm flowed kind you to bit on specifically that you impact outlook of beef -- burgers expect? forward, the on nice of are then prices you customers of wondering comment proteins really also widen, seeing through business, as a there some other just continues out can beef of -- your if really instead persistent And has forward-looking the a kind the looking complex financials the anything on of as to and to would beef? versus price beef call as eating

James Leddy

as year. up versus actually, in I inflation Well, of much price haven't mean, -- flat think flat general it everybody reported was it was X%. year-over-year quarter while would as very the Really, the that beef half is and sequentially prices And back last first the add fairly gone was we I versus about the I expected. thing first

lot middle in And last cuts a of prices a are the been actually, So of even -- meats little months, have moderated the actually middle higher-end bit. has and the the even moderating. couple

a So the versus what's year-over-year little now. market happening in the is misleading right

retail that And lower is not price a I of that really lot You're the driven demand beef. of fact and seeing spikes. incredible that the think is by drives

Christopher Pappas

more And Yes. eating a our small are a total part versus business. bit to steakhouses a add I I customers to hamburger Again, substituting our steak. little of the a -- color mean, think

of talent steakhouse. steak, are thousands unique state-of-the-art XX-ounce of types from a of their these cuts, to creative. customers, all and little steakhouses a match have different of to why and That's go and whether a customers we cut shops more bit how so so much we XX-ounce mix create, But type much the they're and thousands beef again, to our have we to So why sell they protein, other it's that a menus. going

types So types a better to value it maybe of entry customers. of can point give little different

our Wagyu steaks. healthy for see steaks, Japanese So a our very prime demand our we still steaks,

was kind out a So, the still think We as enjoying demand once-in-a-lifetime strong. expect coming of everybody going it to it as and out that be. of is again. like We rush, was didn't strong Is COVID? big it life

amount to And custom for and customers types all we're choices menu, maybe keep of operations. And or and we're going -- to offering people's different a normalcy. different few in the and that's I why skirt that cutting by on say maybe and steaks fit we per lot cycles grinding price saw think customers more our a a different also steak back petite tremendous want it So, who before, I've the seen cuts for portions of smaller-sized lower see these types menus. of obviously have and bucks premium six, you quality we their five, a filet

mainly is a profitable customer continue and think to are and to extremely ways again, our I are the find So in think all But I stay think point changing media things meet really of And and date our the creative. and higher base, price base, effect. they're customer which affects slowing the economy independents end, door is customer customers overall, the has that to going the get more base less. I is them saying on with a it kind or time,

Benjamin Klieve

I'll Got it. Got queue. it. from Very in get helpful back both

Operator

to comments. call hand closing further Chris would the for like Pappas no any this to At are time, And I over questions. back there

Christopher Pappas

joining forward much. summer, Sure. on you and very joining great thank everybody we Thank us our Well, hope call, for we everyone everybody and is our next quarter. we a on look having for

James Leddy

Thank you.

Operator

and gentlemen, joining you Thank today's Ladies concludes that for us. conference.

lines. may You disconnect your now

The Chefs' Warehouse, Inc. (CHEF) 31 Jul 242024 Q2 Earnings call transcript