Question · Q4 2025
Matt Rothway asked about the impact of extreme winter weather on year-to-date sales and the drivers behind the implied flat gross margin and healthy operating expense leverage in the 2026 guidance.
Answer
CFO Jim Leddy explained that January was strong despite seasonal slowness, with the storm impacting only the first fiscal week of February, followed by a quick bounce back. Regarding margins, Mr. Leddy noted that gross profit margin is typically guided flat due to product mix and category growth, with the focus on growing gross profit dollars faster than adjusted operating expenses to achieve leverage.
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