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The Chefs' Warehouse Inc. (CHEF)
NASDAQ:CHEF
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The Chefs' Warehouse
(NASDAQ:CHEF)
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Rating:63Neutral
Price Target:
$58.00
▲(4.62% Upside)
The overall stock score of 63 reflects a mix of strong earnings call performance and financial growth, offset by technical weaknesses and valuation concerns. The positive earnings outlook and strategic initiatives are key strengths, while bearish technical indicators and high valuation present risks.
Positive Factors
Revenue Growth
The Chefs' Warehouse's strong revenue growth indicates a robust demand for its specialty food products, enhancing its market position and supporting long-term business expansion.
Gross Profit Improvement
Improved gross profit margins reflect efficient cost management and pricing power, which can contribute to sustained profitability and competitive advantage.
Strategic Initiatives
Raising full-year guidance demonstrates confidence in future performance and strategic initiatives, potentially leading to enhanced investor trust and long-term growth.
Negative Factors
High Leverage
High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities or weather economic downturns.
Declining Free Cash Flow
A decline in free cash flow may restrict the company's ability to fund new projects, pay down debt, or return capital to shareholders, affecting long-term financial health.
Higher Operating Expenses
Rising operating expenses can erode profit margins and reduce operational efficiency, potentially impacting the company's ability to sustain profitability over time.
The Chefs' Warehouse (CHEF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.26B
Dividend YieldN/A
Average Volume (3M)492.60K
Price to Earnings (P/E)34.2
Beta (1Y)1.36
Revenue Growth7.90%
EPS Growth68.05%
CountryUS
Employees5,029
SectorConsumer Defensive
Sector Strength42
IndustryFood Distribution
Share Statistics
EPS (TTM)0.52
Shares Outstanding40,762,657
10 Day Avg. Volume656,106
30 Day Avg. Volume492,604
Financial Highlights & Ratios
PEG Ratio0.88
Price to Book (P/B)3.43
Price to Sales (P/S)0.49
P/FCF Ratio17.82
Enterprise Value/Market Cap1.66
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit3.93
Enterprise Value/Ebitda17.68
Forecast
1Y Price Target
$74.29Price Target Upside34.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
The Chefs' Warehouse Business Overview & Revenue Model
Company DescriptionThe Chefs' Warehouse (CHEF) is a leading distributor of specialty food products in the United States, serving chefs and foodservice operators across various sectors, including fine dining, hotels, and catering companies. The company offers a wide range of high-quality products, including fresh meats, seafood, dairy, produce, and gourmet items, focusing on premium and unique ingredients that cater to culinary professionals.
How the Company Makes MoneyThe Chefs' Warehouse generates revenue primarily through the distribution of specialty food products to restaurants, hotels, and other foodservice businesses. Its revenue model is based on the wholesale distribution of high-quality ingredients and culinary products, which are sold directly to customers. The company also benefits from strategic partnerships with local and national suppliers, allowing it to offer an extensive product range. Additionally, The Chefs' Warehouse may leverage logistics and delivery services to enhance customer satisfaction and retention, further contributing to its earnings.
The Chefs' Warehouse Earnings Call Summary
Earnings Call Date:Jul 30, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for Chefs' Warehouse. The company demonstrated strong financial performance with revenue, gross profit, and EBITDA growth, alongside strategic initiatives such as share repurchases and improved employee satisfaction. However, challenges included higher operating expenses and some inflationary pressures. Overall, the positive aspects significantly outweigh the challenges.Q2-2025 Updates
Positive Updates
Strong Revenue Growth
Net sales for the second quarter of 2025 increased approximately 8.4% to $1.035 billion from $954.7 million in the second quarter of 2024.
Improvement in Gross Profit
Gross profit increased 11.1% to $254.3 million for the second quarter of 2025 versus $229 million for the second quarter of 2024. Gross profit margins increased approximately 59 basis points to 24.6%.
Adjusted EBITDA Growth
Adjusted EBITDA of $65.4 million for the second quarter of 2025 compared to $56.2 million for the prior year second quarter.
Positive Operating Income
Operating income for the second quarter of 2025 was $40.2 million compared to $33.9 million for the second quarter of 2024.
Great Place to Work Certification
Chefs' Warehouse achieved the Great Place to Work certification for the fourth consecutive year.
Repurchase of Shares
During the quarter, approximately 160,000 shares were repurchased under the $100 million authorized buyback program.
Raised Full Year Guidance
The company raised its full year guidance for 2025, estimating net sales to be in the range of $4 billion to $4.06 billion and adjusted EBITDA to be between $240 million and $250 million.
Negative Updates
Center-of-the-Plate Volume Decline
Pounds in center-of-the-plate were approximately 4.0% lower than the prior year second quarter.
Higher Operating Expenses
Selling, general and administrative expenses increased approximately 9.7% to $213.8 million for the second quarter of 2025 from $194.8 million for the second quarter of 2024.
Inflation Impact
Net inflation was 7.2% in the second quarter, driven by 5% inflation in the specialty category and 10.8% inflation in the center-of-the-plate category.
Company Guidance
During the Chefs' Warehouse Second Quarter 2025 Earnings Conference Call, the company provided robust guidance with several key metrics highlighting their financial performance and projections. Net sales for the second quarter increased by 8.4% to $1.035 billion, driven by specialty sales growth of 8.7% and unique customer growth of 3.6%. Specialty case growth, excluding the impact of a Texas produce program elimination, was 5.8% year-over-year. Gross profit increased by 11.1% to $254.3 million, with gross profit margins rising by 59 basis points to 24.6%. Adjusted EBITDA grew to $65.4 million from $56.2 million in the prior year quarter. The company raised its full-year 2025 guidance, projecting net sales between $4 billion and $4.06 billion, with gross profit expected to be between $964 million and $979 million. Additionally, adjusted EBITDA is anticipated to reach between $240 million and $250 million. The company also highlighted a reduction in net debt to adjusted EBITDA ratio to 2.3x.The Chefs' Warehouse Financial Statement Overview
Summary
The Chefs' Warehouse exhibits a compelling financial recovery and growth trajectory. The income statement reveals substantial revenue and profit improvements, while the balance sheet shows effective leverage management. Cash flows have strengthened, indicating robust operational cash generation and efficient capital allocation. Despite high leverage, the company's overall financial health appears solid, with significant improvements in profitability and cash management.Income Statement
The Chefs' Warehouse has demonstrated strong revenue growth with a significant increase in total revenue from $1.1 billion in 2020 to $3.9 billion in TTM. Gross profit margins have improved consistently, reaching 24% in TTM. The net profit margin also improved to 1.6% from negative values in prior years, indicating better operational efficiency. Overall, the company shows a strong upward revenue trajectory and improvement in profitability.75
Positive
Balance Sheet
The balance sheet indicates a moderate financial position. The debt-to-equity ratio has decreased over time, showing better management of leverage. The equity ratio stands at 29% for TTM, suggesting a balanced asset financing mix. However, the company still carries a significant amount of debt compared to equity, which could pose risks if not managed well.65
Positive
Cash Flow
The cash flow statement reflects robust operating cash flow, increasing from a negative position in 2021 to $171.7 million in TTM. Free cash flow has also turned positive, demonstrating strong cash generation capabilities. The company has improved its free cash flow to net income ratio, highlighting efficient cash management.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.95B | 3.79B | 3.43B | 2.61B | 1.75B | 1.11B |
| Gross Profit | 956.04M | 914.15M | 814.47M | 618.64M | 390.49M | 248.15M |
| EBITDA | 212.54M | 193.14M | 156.55M | 125.71M | 47.18M | -68.69M |
| Net Income | 69.55M | 55.48M | 34.59M | 27.75M | -4.92M | -82.90M |
Balance Sheet | ||||||
| Total Assets | 1.91B | 1.86B | 1.71B | 1.51B | 1.07B | 974.33M |
| Cash, Cash Equivalents and Short-Term Investments | 96.87M | 114.66M | 49.88M | 158.80M | 115.16M | 193.28M |
| Total Debt | 930.04M | 915.83M | 926.27M | 832.77M | 542.48M | 530.48M |
| Total Liabilities | 1.35B | 1.32B | 1.25B | 1.10B | 723.58M | 629.74M |
| Stockholders Equity | 557.72M | 537.65M | 454.67M | 401.51M | 350.21M | 344.59M |
Cash Flow | ||||||
| Free Cash Flow | 118.20M | 103.56M | 4.21M | -22.71M | -58.70M | 35.84M |
| Operating Cash Flow | 156.90M | 153.06M | 61.64M | 23.13M | -19.90M | 42.88M |
| Investing Cash Flow | -38.71M | -49.82M | -179.31M | -232.02M | -48.99M | -67.97M |
| Financing Cash Flow | -59.76M | -38.48M | 9.01M | 253.22M | -9.22M | 78.06M |
The Chefs' Warehouse Technical Analysis
Negative
55.44
Price Trends
63.00
Negative
63.26
Negative
59.03
Negative
Market Momentum
-2.23
Positive
31.59
Neutral
15.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHEF, the sentiment is Negative. The current price of 55.44 is below the 20-day moving average (MA) of 61.94, below the 50-day MA of 63.00, and below the 200-day MA of 59.03, indicating a bearish trend. The MACD of -2.23 indicates Positive momentum. The RSI at 31.59 is Neutral, neither overbought nor oversold. The STOCH value of 15.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CHEF.
The Chefs' Warehouse Risk Analysis
The Chefs' Warehouse disclosed 36 risk factors in its most recent earnings report. The Chefs' Warehouse reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
The Chefs' Warehouse Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $39.31B | 22.01 | 99.08% | 2.56% | 3.21% | -4.03% | |
74 Outperform | $16.05B | 47.16 | 7.91% | ― | 8.61% | -22.16% | |
69 Neutral | $17.15B | 32.57 | 11.48% | ― | 5.32% | 11.65% | |
63 Neutral | $2.26B | 34.22 | 13.64% | ― | 7.90% | 68.05% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $2.46B | ― | -7.39% | ― | 2.60% | -3.23% | |
58 Neutral | $910.78M | 2,245.98 | -2.08% | 3.26% | 1.54% | -134.75% |
* Consumer Defensive Sector Average
CHEF
The Chefs' Warehouse
55.44
16.87
43.74%
SPTN
SpartanNash Co
26.90
6.93
34.70%
SYY
Sysco
82.15
9.41
12.94%
UNFI
United Natural Foods
40.53
21.21
109.78%
PFGC
Performance Food Group
102.57
24.54
31.45%
USFD
US Foods Holding
76.18
15.38
25.30%
The Chefs' Warehouse Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
The Chefs’ Warehouse Amends Term Loan Agreement
Positive
Jun 16, 2025
On June 16, 2025, The Chefs’ Warehouse, Inc. amended its senior secured term loan credit agreement, initially established in 2016. The amendment, known as the Thirteenth Amendment, resulted in a repricing of the company’s senior secured term loan B facility, reducing the interest rate margins by 50 basis points over both the term SOFR and the alternate base rate. The principal amount of term loans outstanding after this amendment is $253.5 million, with no changes to the floor of the Adjusted Term SOFR or the maturity date. This financial restructuring reflects the company’s ongoing efforts to optimize its capital structure and maintain strong banking relationships.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.