Chefs’ Warehouse Buys Harris Seafood Assets For US Expansion

The Chefs’ Warehouse announced the acquisition of selected assets of Florida-based Harris Seafood LLC that will help the company to expand in the Southeast region. The US specialty food products distributor did not disclose the terms of the deal.

Chefs’ Warehouse’s (CHEF) CEO Christopher Pappas said “This acquisition gives The Chefs’ Warehouse a platform on which to accelerate the growth of our seafood category in Orlando and South Florida. We look forward to leveraging Harris Seafood’s local sourcing relationships and category expertise to offer the market the highest quality seafood.” 

In the June-ending second quarter, Chefs’ Warehouse reported a loss of $0.52 per share, larger than analysts’ loss estimates of $0.48 per share. Its revenues of $200.5 million missed the Street consensus by $13.2 million. (See CHEF stock analysis on TipRanks)

On Aug. 31, Loop Capital Markets analyst Lynne Collier initiated coverage on the stock with a Hold rating and a price target of $18 (20.5% upside potential). Collier is positive on the company’s “differentiated positioning, growth opportunities and strong liquidity.” However, the analyst views the stock’s risk-reward as “balanced” at current levels given the lack of visibility around sales and margins. Collier added that reduced travel and lower consumer spending will continue to remain a near-term headwind for the company.

Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 2 Buys and 3 Holds. The average price target of $19.20 implies upside potential of about 28.5% to current levels. Shares fell about 60.6% year-to-date.

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