Cash conversion efficiency remains inconsistent, highlighted by a volatile OCF/NI ratio that swung from -0.46 in 2025Q3 to 2.20 in 2026Q1, reflecting challenges in managing a 50,000 SKU portfolio.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 |
|---|
| Cash from Operations | 117.91M | 129.22M | 153.06M | 61.64M | 23.13M | -19.9M | 42.88M | 45.01M | 45.08M | 31.5M | 38.91M | 37.73M | 9.8M | 10.64M | 8.39M | 16.72M | 13.52M |
| Operating CF Margin % | - | 3.11% | 4.03% | 1.8% | 0.89% | -1.14% | 3.86% | 2.83% | 3.12% | 2.42% | 3.26% | 3.56% | 1.17% | 1.58% | 1.75% | 4.17% | 4.1% |
| Operating CF Growth % | -216.13% | -15.58% | 148.32% | 166.44% | 216.26% | -146.41% | -4.72% | -0.17% | 43.13% | -19.06% | 3.15% | 285.09% | -7.91% | 26.78% | -49.81% | 23.63% | - |
| Net Income | 79.44M | 72.36M | 55.48M | 34.59M | 27.75M | -4.92M | -82.9M | 24.19M | 20.4M | 14.37M | 3.02M | 16.21M | 14.21M | 16.99M | 14.51M | 7.7M | 15.87M |
| Depreciation & Amortization | 80.23M | 78.13M | 64.93M | 55.61M | 38.24M | 34.97M | 33.28M | 25.99M | 22.21M | 20.55M | 18.52M | 15.41M | 8.24M | 7.32M | 3.93M | 1.72M | 1.39M |
| Stock-Based Compensation | 21.77M | 21.24M | 17.78M | 20.04M | 13.6M | 11.48M | 9.29M | 4.4M | 4.09M | 3.02M | 2.58M | 3.54M | 1.37M | 1.21M | 1.55M | 2.1M | 0 |
| Deferred Taxes | 6.01M | 0 | 1.46M | 8.11M | 9.6M | -1.84M | -18.42M | 2.06M | 2.55M | -703K | 3.68M | -809K | 173K | 970K | -83K | 1.16M | -2.77M |
| Other Non-Cash Items | 29.2M | 33.12M | 14.86M | 18.45M | 31.88M | 2.77M | 38.36M | 15.17M | 9.33M | 5.71M | 18.81M | 5.25M | 380K | 753K | 2.44M | 8.36M | 1.54M |
| Working Capital Changes | -98.75M | -75.64M | -1.45M | -75.17M | -97.94M | -62.35M | 63.27M | -26.81M | -13.51M | -11.45M | -7.69M | -1.88M | -14.59M | -16.6M | -13.95M | -4.32M | -2.44M |
| Change in Receivables | -54.01M | -35.85M | -44.81M | -48.81M | -48.23M | -70.78M | 77.59M | -13.21M | -19.47M | -13.46M | -2.5M | -11.05M | -21.33M | -5.88M | -7.74M | -7.03M | -5.64M |
| Change in Inventory | -44.76M | -67.11M | -32.2M | -28.76M | -49.93M | -60.8M | 49.05M | -9.44M | -6.33M | -11.78M | 7.04M | -6.11M | -10.81M | 395K | -5.13M | -3.97M | -450K |
| Change in Payables | 5.52M | 31.37M | 87.31M | 19.6M | 19.16M | 69.34M | -64.68M | 1.96M | 13.8M | 15.17M | -8.23M | 16.66M | 16.82M | -10.62M | -710K | 6.76M | 4.52M |
| Cash from Investing | -42.11M | -46.76M | -49.82M | -179.31M | -232.02M | -48.99M | -67.97M | -44.15M | -33.69M | -42.41M | -35.81M | -129.3M | -23.67M | -89.7M | -75.71M | -19.83M | -4.87M |
| Capital Expenditures | -36.78M | -41.43M | -49.51M | -57.43M | -45.85M | -38.8M | -7.04M | -16.08M | -19.82M | -12.31M | -16.62M | -21.66M | -24.21M | -11.7M | -3.19M | -2.08M | -1.13M |
| CapEx % of Revenue | 0.86% | 1% | 1.3% | 1.67% | 1.75% | 2.22% | 0.63% | 1.01% | 1.37% | 0.95% | 1.39% | 2.04% | 2.89% | 1.74% | 0.66% | 0.52% | 0.34% |
| Acquisitions | -4.58M | -4.58M | -315K | -121.88M | -186.18M | -10.19M | -60.93M | -28.08M | -13.9M | -30.09M | -19.74M | -123.83M | 484K | -78M | -72.52M | -17.76M | -3.74M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -750K | -750K | 0 | 0 | 0 | 0 | 0 | 0 | 30K | 0 | 550K | 16.19M | 49K | 0 | -7K | 5K | 0 |
| Cash from Financing | -69.59M | -76.22M | -38.48M | 9.01M | 253.22M | -9.22M | 78.06M | 96.95M | -10.44M | 19.43M | 27.23M | 91.05M | -2.7M | 98.73M | 65.41M | 3.17M | -7.55M |
| Debt Issued (Net) | -35.27M | -48.57M | -10.05M | 24.45M | 278.65M | -7.31M | -1.29M | 103.92M | -6.68M | -12.83M | 42.33M | 94.49M | -7.89M | 19.73M | 67.49M | -58.12M | 68.83M |
| Equity Issued (Net) | -22.97M | -15M | -24.8M | -2.13M | -2.67M | -1.83M | 82.27M | -1.02M | -764K | 34.02M | -569K | -1.09M | -491K | 74.77M | -346K | 62.59M | -68.42M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.6M |
| Share Repurchases | -25.01M | -15M | -24.8M | -2.13M | -2.67M | -1.83M | -3.67M | -1.02M | -764K | -500K | -569K | -1.09M | -491K | -269K | -346K | -692K | -68.42M |
| Other Financing | -11.36M | -12.65M | -3.63M | -13.31M | -22.76M | -83K | -2.93M | -5.95M | -3M | -1.76M | -14.53M | -2.35M | 5.69M | 4.23M | -1.74M | -1.3M | -6.36M |
| Net Change in Cash | 6.18M | 6.33M | 64.78M | -108.92M | 43.65M | -78.13M | 53.05M | 97.82M | 906K | 8.64M | 30.41M | -874K | -16.69M | 19.9M | -1.92M | 55K | 1.1M |
| Free Cash Flow | 81.13M | 87.79M | 103.56M | 4.21M | -22.71M | -58.7M | 35.84M | 28.93M | 25.27M | 19.19M | 22.29M | 16.07M | -14.41M | -1.07M | 5.21M | 14.64M | 12.39M |
| FCF Margin % | 1.91% | 2.12% | 2.73% | 0.12% | -0.87% | -3.36% | 3.22% | 1.82% | 1.75% | 1.47% | 1.87% | 1.52% | -1.72% | -0.16% | 1.08% | 3.65% | 3.75% |
| FCF Growth % | -36.09% | -15.22% | 2358.57% | 118.54% | 61.3% | -263.76% | 23.9% | 14.51% | 31.68% | -13.93% | 38.7% | 211.53% | -1251.69% | -120.48% | -64.44% | 18.14% | - |
| FCF per Share | 1.76 | 1.91 | 2.25 | 0.09 | -0.59 | -1.60 | 1.06 | 0.96 | 0.85 | 0.70 | 0.86 | 0.61 | -0.58 | -0.05 | 0.25 | 0.81 | 0.58 |
| FCF Conversion (FCF/Net Income) | 1.02x | 1.79x | 2.76x | 1.78x | 0.83x | 4.04x | -0.52x | 1.86x | 2.21x | 2.19x | 12.87x | 2.33x | 0.69x | 0.63x | 0.58x | 2.17x | 0.85x |
| Interest Paid | 1.78M | 0 | 42.76M | 42.07M | 27.23M | 15.39M | 18.18M | 0 | 16.95M | 20.8M | 17.79M | 11.46M | 8.16M | 6.01M | 2.78M | 7.36M | 3.54M |
| Taxes Paid | 16.73M | 0 | 18.52M | 17.93M | 4.28M | 230K | 308K | 0 | 4.83M | 333K | 6.37M | 11.05M | 10.65M | 11.46M | 12.29M | 2.64M | 5.79M |
Working capital volatility
According to reported financial statements, the relationship between net income and operating cash flow is highly volatile, with OCF/NI ratios swinging from a low of -0.46 in 2025Q3 to a high of 16.00 in 2024Q1, indicating significant inconsistency in the company's ability to convert accounting profits into cash.
The wide variance in cash conversion suggests that reported net income is frequently decoupled from actual cash generation, likely due to the timing of inventory procurement and accounts receivable cycles. Investors should monitor whether this instability reflects structural challenges in managing the cash conversion cycle or merely seasonal fluctuations inherent in the specialty food distribution model.
Based on the provided quarterly data, FCF margins have demonstrated extreme instability, ranging from a negative 1.9% in 2025Q3 to a peak of 6.3% in 2024Q4, which highlights the difficulty in maintaining consistent cash flow generation despite the company's ongoing revenue expansion efforts.
The erratic nature of free cash flow suggests that the business model is highly sensitive to working capital swings that can quickly absorb operating cash. This lack of predictability in cash flow trajectory may complicate long-term capital allocation planning and suggests that the company's profitability is not yet translating into a reliable, self-funding engine.
As reported in recent filings, working capital changes have been a significant drag on cash flow, including a substantial $61.2 million outflow in 2025Q3, which underscores the capital-intensive nature of managing a diverse 50,000 SKU portfolio across a fragmented customer base.
The frequent and large negative working capital adjustments suggest that the company is often forced to tie up significant liquidity in inventory or extended receivables to support its high-touch service model. This dynamic warrants further investigation into whether the company's inventory management systems are sufficiently optimized to prevent excessive cash burn during periods of rapid growth.
Based on the provided figures, capital expenditures have remained relatively disciplined, with CapEx/Revenue ratios generally hovering between 0.7% and 2.3%, suggesting that the company is not currently over-investing in physical infrastructure relative to its top-line growth trajectory.
While the current level of capital intensity appears manageable, the ongoing need for warehouse and logistics upgrades means that maintenance CapEx remains a persistent claim on cash flow. Analysts should monitor whether these investments are sufficient to maintain the specialized logistics moat or if future competitive pressures will necessitate a higher level of capital reinvestment.
Quick answers to the most common questions about buying CHEF stock.
The Chefs' Warehouse, Inc. (CHEF) generated $129.2M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
The Chefs' Warehouse, Inc. (CHEF) generated $87.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
The Chefs' Warehouse, Inc. (CHEF) spent $41.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, The Chefs' Warehouse, Inc. (CHEF) spent $15.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.