The Chefs' Warehouse (CHEF) AI Stock Analysis

• Market Cap: $2.62B
• Dividend Yield: N/A
• Average Volume (3M): 405.33K
• Price to Earnings (P/E): 37.3
• Beta (1Y): 0.95
• Revenue Growth: 8.88%
• EPS Growth: 54.12%
• Country: US
• Employees: 5,029
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 0.50
• Shares Outstanding: 40,685,550
• 10 Day Avg. Volume: 405,735
• 30 Day Avg. Volume: 405,328
• PEG Ratio: 0.88
• Price to Book (P/B): 3.43
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 17.82
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 3.65
• Enterprise Value/Ebitda: 16.01
• 1Y Price Target: $76.71
• Price Target Upside: 19.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 1.92
• Revenue Forecast (FY): $4.10B

• Rating: 72 Outperform
• Price Target: $66.00 ▲(2.39% Upside)

The Chefs' Warehouse receives a solid score driven by strong earnings call performance and consistent financial growth. However, high valuation and cash flow challenges slightly temper the overall outlook. The company's expansion and acquisition strategies provide a positive growth trajectory.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective sales strategies, enhancing long-term business sustainability.

Acquisition Strategy

Strategic acquisitions like Italco expand market presence and product offerings, supporting long-term growth and competitive positioning.

Market Expansion

Expanding into new regions like the Middle East diversifies revenue streams and reduces reliance on existing markets, fostering growth.

Negative Factors

Cash Flow Challenges

Declining free cash flow suggests potential cash management issues, which could limit investment capacity and financial flexibility.

Net Profit Margins

Low net profit margins indicate challenges in cost control and profitability, which may impact long-term financial health and competitiveness.

Commodity Attrition Impact

Commodity attrition in Texas affects customer growth, highlighting vulnerability to supply chain disruptions and market volatility.

The Chefs' Warehouse Business Overview & Revenue Model

Company Description

The Chefs' Warehouse, Inc., together with its subsidiaries, engages in distribution of specialty food products in the United States and Canada. The company's product portfolio includes approximately 50,000 stock-keeping units, such as specialty food products, such as artisan charcuterie, specialty cheeses, unique oils and vinegars, truffles, caviar, chocolate, and pastry products. It also offers a line of center-of-the-plate products, including custom cut beef, seafood, and hormone-free poultry, as well as food products, such as cooking oils, butter, eggs, milk, and flour. The company serves menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolatiers, cruise lines, casinos, and specialty food stores. It markets its center-of-the-plate products directly to consumers through a mail and e-commerce platform. The company was founded in 1985 and is headquartered in Ridgefield, Connecticut.

How the Company Makes Money

The Chefs' Warehouse generates revenue primarily through the distribution of specialty food products to various foodservice operators. The company's revenue model is based on selling a diverse range of food items, which includes both perishable and non-perishable goods. Key revenue streams include direct sales to restaurants, hotels, and catering services, as well as sales through e-commerce platforms. Additionally, CHEF benefits from strategic partnerships with local and national suppliers, enabling them to offer unique products and maintain competitive pricing. The company's focus on high-quality service and strong relationships with chefs and foodservice professionals also contributes to repeat business and customer loyalty, further enhancing its earnings potential.

The Chefs' Warehouse Financial Statement Overview

Summary

The Chefs' Warehouse demonstrates consistent revenue growth and stable gross profit margins, indicating efficient cost management. However, low net profit margins and declining free cash flow highlight areas for improvement in profitability and cash management.

Income Statement

The Chefs' Warehouse has demonstrated consistent revenue growth, with a TTM growth rate of 2.28% and a strong historical trend. Gross profit margins have remained stable around 24%, indicating efficient cost management. However, net profit margins are relatively low at 1.85%, suggesting room for improvement in profitability. The EBIT and EBITDA margins are modest, reflecting operational efficiency but also highlighting potential for enhanced profitability.

Balance Sheet

The company's debt-to-equity ratio has significantly improved to 0.42 in the TTM, indicating reduced leverage and a stronger equity position. Return on equity has increased to 13.48%, showcasing improved profitability relative to shareholder equity. The equity ratio of 30.09% suggests a balanced capital structure, though there remains potential risk if debt levels rise again.

Cash Flow

Operating cash flow is positive, but the free cash flow has decreased by 26.70% in the TTM, indicating potential cash management challenges. The operating cash flow to net income ratio of 0.32 suggests moderate cash generation efficiency. The free cash flow to net income ratio of 0.68 indicates that a significant portion of net income is being converted into free cash flow, though there is room for improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.04B	3.79B	3.43B	2.61B	1.75B	1.11B
Gross Profit	978.49M	914.15M	814.47M	618.64M	390.49M	248.15M
EBITDA	222.93M	193.14M	156.55M	125.71M	47.18M	-68.69M
Net Income	74.60M	55.48M	34.59M	27.75M	-4.92M	-82.90M
Balance Sheet
Total Assets	1.92B	1.86B	1.71B	1.51B	1.07B	974.33M
Cash, Cash Equivalents and Short-Term Investments	65.06M	114.66M	49.88M	158.80M	115.16M	193.28M
Total Debt	954.12M	915.83M	926.27M	839.98M	542.48M	530.48M
Total Liabilities	1.34B	1.32B	1.25B	1.10B	723.58M	629.74M
Stockholders Equity	576.64M	537.65M	454.67M	401.51M	350.21M	344.59M
Cash Flow
Free Cash Flow	86.64M	103.56M	4.21M	-22.71M	-58.70M	35.84M
Operating Cash Flow	128.36M	153.06M	61.64M	23.13M	-19.90M	42.88M
Investing Cash Flow	-41.72M	-49.82M	-179.31M	-232.02M	-48.99M	-67.97M
Financing Cash Flow	-72.25M	-38.48M	9.01M	253.22M	-9.22M	78.06M

The Chefs' Warehouse Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 64.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHEF, the sentiment is Positive. The current price of 64.46 is above the 20-day moving average (MA) of 61.40, above the 50-day MA of 60.33, and above the 200-day MA of 60.35, indicating a bullish trend. The MACD of 1.04 indicates Negative momentum. The RSI at 64.18 is Neutral, neither overbought nor oversold. The STOCH value of 87.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CHEF.

The Chefs' Warehouse Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USFD	74 Outperform	$17.26B	32.22	12.29%	―	4.80%	3.49%
CHEF	72 Outperform	$2.62B	37.27	14.12%	―	8.88%	54.12%
SYY	71 Outperform	$35.67B	19.96	84.89%	2.82%	2.92%	-4.06%
PFGC	65 Neutral	$14.37B	44.07	7.42%	―	10.55%	-23.38%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SPTN	58 Neutral	―	―	―	―	1.54%	-134.75%
UNFI	52 Neutral	$2.05B	-20.15	-6.37%	―	1.45%	-5.49%

The Chefs' Warehouse Corporate Events

The Chefs’ Warehouse Reports Strong Q3 2025 Results

The Chefs’ Warehouse, Inc. is a leading distributor of specialty food products, serving chefs and culinary professionals across the United States, the Middle East, and Canada. The company caters to independent restaurants, fine dining establishments, and other culinary venues with a diverse range of over 88,000 products.

The Chefs’ Warehouse Inc. Reports Strong Q3 Earnings and Optimistic Outlook

The Chefs’ Warehouse Inc. recently held its third-quarter earnings call, which painted a generally positive picture of the company’s financial health and strategic direction. The call highlighted robust revenue and profit growth, successful acquisitions, and an optimistic outlook with raised full-year guidance. Despite some challenges, such as the Texas commodity poultry attrition and temporary impacts in the Middle East, the overall sentiment was optimistic, buoyed by ongoing expansion efforts.