The Chefs' Warehouse (CHEF) investor relations material

Strategic investments and operational improvements

• Significant investments in facilities, technology, and training over the past decade are now driving operational leverage and improved performance, with a focus on expanding into new territories and categories.

• The Power BI tool has enhanced data-driven decision-making across sales, logistics, and procurement, providing real-time insights and supporting margin improvement initiatives.

• Route consolidation and facility upgrades in key markets like Florida, California, and Texas are yielding operational synergies and marketing advantages.

• Ongoing focus on leveraging fixed overhead and increasing GP dollars faster than overhead to drive EBITDA growth.

• Technology adoption is creating a competitive divide, with advanced tools enabling higher productivity and accountability among sales teams.

Growth, margin outlook, and market expansion

• EBITDA margin has reached 6.4% on a trailing four-quarter basis, with a long-term target of 7% and $5 billion in sales by 2028, driven by both organic growth and selective M&A.

• Margin expansion is supported by operational efficiencies, category mix, and technology, though growth via M&A may temporarily dilute margins.

• Texas and Florida are in early stages of growth, with significant facility investments planned to consolidate operations and accelerate market penetration.

• Canada is a profitable but smaller market, with potential for future acquisitions, while the Carolinas are identified as a future expansion target.

• Deleveraging has improved financial flexibility, allowing for patient and opportunistic M&A while prioritizing organic growth.

International and segment performance

• Middle East operations are currently running at 75% of last year’s levels due to regional conflict, but the management team is praised for resilience and logistics expertise.

• International revenue, including Canada and the Middle East, represents 5–10% of total business.

• Hardie’s integration in Texas is progressing, with profitability improving as the business is restructured and aligned with core operations.