Chefs’ Warehouse (NASDAQ:CHEF) Releases Quarterly Earnings Results, Beats Expectations By $0.19 EPS

Chefs’ Warehouse (NASDAQ:CHEF) issued its earnings results on Wednesday. The company reported $0.78 earnings per share for the quarter, topping analysts’ consensus estimates of $0.59 by $0.19, Zacks reports. Chefs’ Warehouse had a return on equity of 15.54% and a net margin of 1.87%.The company had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.12 billion. During the same period in the prior year, the firm earned $0.52 earnings per share. Chefs’ Warehouse’s revenue for the quarter was up 12.9% on a year-over-year basis.

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 Stock Up 9.7%

Chefs’ Warehouse stock traded up $9.75 during midday trading on Wednesday, hitting $109.93. 256,729 shares of the stock were exchanged, compared to its average volume of 489,439. Chefs’ Warehouse has a 52-week low of $53.20 and a 52-week high of $112.14. The company has a quick ratio of 1.33, a current ratio of 2.18 and a debt-to-equity ratio of 1.18. The business’s 50-day moving average price is $90.08 and its 200-day moving average price is $74.62. The stock has a market capitalization of $4.48 billion, a price-to-earnings ratio of 60.55 and a beta of 1.39.

Insider Activity

In other news, insider Christina Polychroni sold 4,500 shares of Chefs’ Warehouse stock in a transaction on Tuesday, May 19th. The stock was sold at an average price of $79.21, for a total transaction of $356,445.00. Following the sale, the insider directly owned 24,642 shares in the company, valued at $1,951,892.82. The trade was a 15.44% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Christopher Pappas sold 125,000 shares of the stock in a transaction that occurred 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 transaction, the chief executive officer directly owned 2,189,453 shares of the company’s stock, valued at $170,777,334. This represents a 5.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Company insiders own 11.10% of the company’s stock.

Institutional Investors Weigh In On Chefs’ Warehouse

Hedge funds have recently modified their holdings of the stock. Wellington Management Group LLP raised its stake in shares of Chefs’ Warehouse by 12.2% in the fourth quarter. Wellington Management Group LLP now owns 2,930,463 shares of the company’s stock valued at $182,656,000 after buying an additional 318,942 shares during the period. Ameriprise Financial Inc. lifted its stake in shares of Chefs’ Warehouse by 2.7% during the 2nd quarter. Ameriprise Financial Inc. now owns 2,129,189 shares of the company’s stock valued at $135,864,000 after buying an additional 55,850 shares in the last quarter. Victory Capital Management Inc. boosted its holdings in Chefs’ Warehouse by 3.2% in the 4th quarter. Victory Capital Management Inc. now owns 1,428,184 shares of the company’s stock worth $89,019,000 after buying an additional 44,323 shares during the period. State Street Corp boosted its holdings in Chefs’ Warehouse by 0.4% in the 4th quarter. State Street Corp now owns 1,383,974 shares of the company’s stock worth $86,263,000 after buying an additional 5,813 shares during the period. Finally, Alliancebernstein L.P. grew its stake in Chefs’ Warehouse by 6.5% in the 2nd quarter. Alliancebernstein L.P. now owns 1,149,252 shares of the company’s stock valued at $73,334,000 after buying an additional 70,318 shares in the last quarter. Institutional investors own 91.55% of the company’s stock.

Wall Street Analyst Weigh In

CHEF has been the subject of a number of recent research reports. UBS Group decreased their price target on shares of Chefs’ Warehouse from $83.00 to $80.00 and set a “buy” rating for the company in a research note on Thursday, April 23rd. TD Cowen initiated coverage on shares of Chefs’ Warehouse in a research note on Tuesday, July 7th. They issued a “buy” rating and a $110.00 price objective on the stock. Wall Street Zen upgraded shares of Chefs’ Warehouse from a “hold” rating to a “buy” rating in a report on Saturday, July 18th. BTIG Research lifted their price objective on shares of Chefs’ Warehouse from $82.00 to $100.00 and gave the company a “buy” rating in a report on Thursday, June 11th. Finally, Morgan Stanley downgraded shares of Chefs’ Warehouse from an “overweight” rating to an “equal weight” rating and boosted their target price for the stock from $83.00 to $97.00 in a research report on Wednesday, July 15th. Four equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Chefs’ Warehouse has an average rating of “Moderate Buy” and a consensus price target of $91.86.

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.