The Chefs' Warehouse Inc. (CHEF) gave investors something to chew on Wednesday. The specialty food distributor reported better-than-expected third-quarter results and raised its full-year forecast, sending shares up 2.92% to $112.17.

The numbers were solid across the board. Adjusted earnings came in at 66 cents per share, comfortably ahead of the 56 cents analysts were expecting. Revenue climbed 11.2% year over year to $1.14 billion, topping the consensus estimate of $1.12 billion.

Sales, Volumes and Margins

Organic sales rose 10.3% year over year, while acquisitions added another 0.9 percentage points to revenue growth. In the specialty category, organic case volume increased 6.1%, supported by 4.4% growth in unique customers and a 7.2% increase in unique item placements. Organic pounds sold in the center-of-the-plate category rose 6.6%.

Net inflation reached 4.1%, including 2.6% in specialty products and 6.6% in center-of-the-plate products. That pricing power helped gross profit climb 15% to $284.3 million, driven by higher sales volumes, price inflation and acquisitions. Gross margin expanded 84 basis points to 25%, reflecting improvements across both product categories.

Adjusted EBITDA increased to $82.2 million from $65.1 million a year earlier. The company ended the quarter with $164.7 million in cash and cash equivalents and $728.9 million in total debt.

Holiday Demand Looks Healthy

Chairman and CEO Christopher Pappas attributed the strong results to broad-based growth across regional markets and product categories. He said business momentum continued into October, positioning the company for the important holiday shopping and dining season.

Pappas also highlighted strong demand heading into the holidays, particularly for private events, corporate gatherings and celebrations.

"There's a lot of demand in the fourth quarter of private events, corporate events, celebrations. So it's really healthy at the top," Pappas said during Wednesday's earnings call.

CFO James Leddy said the company recorded double-digit sales growth in October, consistent with trends throughout the year.

Raising the 2026 Forecast

Chefs' Warehouse raised its full-year revenue forecast to $4.56 billion to $4.61 billion from $4.5 billion to $4.6 billion. Analysts expect revenue of $4.59 billion. The company expects gross profit of $1.13 billion to $1.14 billion and adjusted EBITDA of $317 million to $321 million.

Management also highlighted resilient operations in the Middle East despite regional challenges. Recent revenue trends remained near year-earlier levels, supported by returning expatriates and local dining demand.

Looking ahead, the company plans to expand distribution and consolidate facilities in key markets, including Texas and New England. It also intends to invest in artificial intelligence and digital tools to improve operating efficiency.

Management remains cautious about inflation and fuel costs. It expects price inflation to stay near the upper end of its normal 2% to 4% range.

CHEF Price Action: The Chefs' Warehouse shares were up 2.92% at $112.17 at the time of publication on Wednesday.