Chefs’ Warehouse (NASDAQ:CHEF) Posts Earnings Results, Beats Estimates By $0.19 EPS

Chefs’ Warehouse (NASDAQ:CHEF) released its quarterly earnings results on Wednesday. The company reported $0.78 earnings per share for the quarter, topping the consensus estimate of $0.59 by $0.19, Zacks reports. The business had revenue of $1.17 billion during the quarter, compared to analysts’ expectations of $1.12 billion. Chefs’ Warehouse had a return on equity of 15.54% and a net margin of 1.87%.The firm’s revenue for the quarter was up 12.9% compared to the same quarter last year. During the same period last year, the firm posted $0.52 EPS.

Here are the key takeaways from Chefs’ Warehouse’s conference call:

• Strong second-quarter performance: Net sales rose 12.9% to $1.169 billion, while adjusted EBITDA increased 35% to $88.1 million. Gross margin expanded 49 basis points to 25.1%, and adjusted EPS rose to $0.78 from $0.52.
• The company raised its 2026 outlook to $4.5 billion-$4.6 billion in sales, $1.102 billion-$1.125 billion in gross profit, and $305 million-$315 million in adjusted EBITDA. Management said momentum continued into July, with double-digit top-line growth expected to begin the third quarter.
• Chefs’ Warehouse introduced longer-term 2030 targets calling for $6 billion-$6.5 billion in revenue and $450 million-$520 million in adjusted EBITDA, supported by 7%-10% annual growth, market-share gains, facility investments, and operating leverage.
• Management highlighted continued investments in sales talent, distribution capacity, AI and other technology, pricing, procurement, and inventory management. Executives expect these tools to improve efficiency and customer service, though they cautioned that benefits should accrue incrementally rather than create an immediate step-change in margins.
• The Middle East business improved to roughly 94% of the prior-year level during May and June, but tourism uncertainty and higher logistics costs remain risks. The company also cited elevated fuel costs and a “frothier” M&A environment, while maintaining a disciplined approach to acquisitions and planning greater share repurchases within its leverage target.

Chefs’ Warehouse Trading Up 9.7%

Shares of CHEF stock traded up $9.75 during trading hours on Wednesday, hitting $109.93. 256,729 shares of the company’s stock traded hands, compared to its average volume of 489,439. The stock has a market cap of $4.48 billion, a PE ratio of 60.55 and a beta of 1.39. The stock’s 50 day simple moving average is $90.08 and its 200 day simple moving average is $74.62. The company has a quick ratio of 1.33, a current ratio of 2.18 and a debt-to-equity ratio of 1.18. Chefs’ Warehouse has a 12 month low of $53.20 and a 12 month high of $112.14.

Analysts Set New Price Targets

Several research analysts have weighed in on the company. BTIG Research increased their price objective on Chefs’ Warehouse from $82.00 to $100.00 and gave the stock a “buy” rating in a research report on Thursday, June 11th. TD Cowen assumed coverage on shares of Chefs’ Warehouse in a research report on Tuesday, July 7th. They issued a “buy” rating and a $110.00 target price for the company. UBS Group decreased their price target on shares of Chefs’ Warehouse from $83.00 to $80.00 and set a “buy” rating on the stock in a research note on Thursday, April 23rd. Wall Street Zen raised shares of Chefs’ Warehouse from a “hold” rating to a “buy” rating in a research report on Saturday, July 18th. Finally, Benchmark lifted their price objective on shares of Chefs’ Warehouse from $90.00 to $106.00 and gave the stock a “buy” rating in a research note on Tuesday, July 14th. Four analysts have rated the stock with a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, Chefs’ Warehouse currently has an average rating of “Moderate Buy” and an average price target of $91.86.

Insider Buying and Selling

In related news, CEO Christopher Pappas sold 125,000 shares of Chefs’ Warehouse stock in a transaction on Tuesday, May 5th. The shares were sold at an average price of $78.00, for a total transaction of $9,750,000.00. Following the completion of the transaction, the chief executive officer owned 2,189,453 shares of the company’s stock, valued at $170,777,334. This trade represents a 5.40% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Also, insider Christina Polychroni sold 4,500 shares of the business’s stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $79.21, for a total value of $356,445.00. Following the completion of the transaction, the insider directly owned 24,642 shares in the company, valued at $1,951,892.82. This represents a 15.44% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 11.10% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. nVerses Capital LLC bought a new stake in Chefs’ Warehouse in the fourth quarter valued at $251,000. Wellington Management Group LLP boosted its position in shares of Chefs’ Warehouse by 12.2% during the 4th quarter. Wellington Management Group LLP now owns 2,930,463 shares of the company’s stock worth $182,656,000 after purchasing an additional 318,942 shares in the last quarter. Susquehanna Portfolio Strategies LLC grew its stake in shares of Chefs’ Warehouse by 1,027.8% in the 4th quarter. Susquehanna Portfolio Strategies LLC now owns 51,091 shares of the company’s stock valued at $3,185,000 after buying an additional 46,561 shares during the period. Odyssean LLC acquired a new stake in shares of Chefs’ Warehouse in the 4th quarter valued at about $746,000. Finally, Millennium Management LLC increased its position in Chefs’ Warehouse by 2,871.7% in the 4th quarter. Millennium Management LLC now owns 251,376 shares of the company’s stock valued at $15,668,000 after buying an additional 242,917 shares in the last quarter. Institutional investors and hedge funds own 91.55% of the company’s stock.

Chefs’ Warehouse Company Profile

Chefs’ Warehouse, Inc is a specialty food distributor that supplies a broad range of high?end ingredients and culinary products to professional chefs, restaurants, hotels, and other foodservice operators. Headquartered in Maspeth, New York, the company sources its portfolio from local artisans, boutique producers and leading global suppliers. Its core offerings include fresh and frozen proteins, specialty cuts of meat and seafood, handcrafted cheeses and charcuterie, seasonal produce, value?added preparations, pantry staples and premium desserts and beverages.

The company operates a network of distribution centers strategically located in major metropolitan markets across North America.