The Chefs' Warehouse Inc. (CHEF)
NASDAQ:CHEF
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The Chefs' Warehouse
(NASDAQ:CHEF)
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Rating:69Neutral
Price Target:
$63.00
▲(6.38% Upside)
Action:ReiteratedDate:02/17/26
The score is driven primarily by improved operating fundamentals and a constructive 2026 outlook, supported by strong technical trend/momentum. The main constraint is valuation (high P/E) alongside the business’s thin margins and meaningful leverage, which raise sensitivity to cost/volume changes and dilution.
Positive Factors
Scale & Revenue Recovery
Revenue surpassed $4.0B in 2025 after multi-year recovery, reflecting expanded route density and customer penetration. Larger scale improves purchasing leverage, distribution efficiency and resilience to localized demand shifts, supporting durable top-line stability and strategic reinvestment.
Negative Factors
Thin Net Margins
Net margin near 1.7% leaves little cushion against input-cost inflation, pricing pressures, or volume declines. In a low-margin distribution model, small adverse shifts in cost, mix, or volumes can materially depress earnings and free cash flow, increasing downside risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Scale & Revenue Recovery
Revenue surpassed $4.0B in 2025 after multi-year recovery, reflecting expanded route density and customer penetration. Larger scale improves purchasing leverage, distribution efficiency and resilience to localized demand shifts, supporting durable top-line stability and strategic reinvestment.
Read all positive factors
The Chefs' Warehouse (CHEF) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.41B
Dividend YieldN/A
Average Volume (3M)493.68K
Price to Earnings (P/E)28.4
Beta (1Y)0.97
Revenue Growth8.88%
EPS Growth54.12%
CountryUS
Employees5,029
SectorConsumer Defensive
Sector Strength42
IndustryFood Distribution
Share Statistics
EPS (TTM)0.68
Shares Outstanding40,694,233
10 Day Avg. Volume535,028
30 Day Avg. Volume493,684
Financial Highlights & Ratios
PEG Ratio1.21
Price to Book (P/B)4.07
Price to Sales (P/S)0.59
P/FCF Ratio28.02
Enterprise Value/Market Cap1.44
Enterprise Value/Revenue0.84
Enterprise Value/Gross Profit3.45
Enterprise Value/Ebitda15.52
Forecast
1Y Price Target
$78.00Price Target Upside31.71% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)2.15
Revenue Forecast (FY)$4.43B
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 fo...
How the Company Makes Money
The Chefs' Warehouse makes money primarily by purchasing food and related products from producers and suppliers and reselling them to foodservice customers at a markup, generating revenue from product sales delivered through its distribution netwo...
The Chefs' Warehouse Key Performance Indicators (KPIs)
The Chefs' Warehouse Earnings Call Summary
Earnings Call Date:Feb 11, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call emphasized strong top-line and adjusted-profitability performance (double-digit YoY sales and gross profit growth, significant adjusted EBITDA and adjusted EPS gains, operational efficiency improvements, and solid liquidity) alongside some transitory and identifiable headwinds (an $8M impairment, slight overall margin compression driven by center-of-plate dynamics, and the impact of exiting two small Texas programs that distorted some reported metrics). Management presented constructive 2026 guidance, continued M&A discipline, and balance sheet actions (term loan repricing, opportunistic buybacks). On balance, the positives (growth, margin-dollar improvements, efficiency gains, cash generation, and clear guidance) outweigh the limited lowlights.Positive Updates
Q4 Net Sales Growth
Net sales for Q4 increased 10.5% to $1.143 billion from $1.034 billion in the prior year; organic net sales growth was 9.7%.
Negative Updates
Slight Compression in Overall Gross Margin
Gross profit margin decreased approximately 8 basis points in Q4 to 24.2%; center-of-the-plate gross margin declined ~50 basis points YoY while specialty margin improved ~45 basis points.
Read all updates
Q4-2025 Updates
Positive
Negative
Q4 Net Sales Growth
Net sales for Q4 increased 10.5% to $1.143 billion from $1.034 billion in the prior year; organic net sales growth was 9.7%.
Read all positive updates
Company Guidance
Management guided full-year 2026 net sales of $4.35–$4.45 billion, gross profit of $1.053–$1.076 billion and adjusted EBITDA of $276–$286 million, noting the 2028 convertible notes will be dilutive and the fully diluted share count is expected to be about 46.0–46.7 million; guidance implies roughly 6–8% revenue growth versus 2025 and assumes baseline inflation of about 2–4%, while the company enters 2026 with net debt to adjusted EBITDA of ~2.1x (as of 12/26/25), total liquidity of $280.5 million (cash $121.0M, ABL availability $159.5M) and a repriced term loan at a 2.5% spread above SOFR.The Chefs' Warehouse Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
58
Neutral
Cash Flow
66
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 4.15B | 3.79B | 3.43B | 2.61B | 1.75B |
| Gross Profit | 1.00B | 914.15M | 814.47M | 618.64M | 390.49M |
| EBITDA | 223.24M | 193.14M | 156.55M | 125.71M | 47.18M |
| Net Income | 72.36M | 55.48M | 34.59M | 27.75M | -4.92M |
Balance Sheet | |||||
| Total Assets | 2.03B | 1.86B | 1.71B | 1.51B | 1.07B |
| Cash, Cash Equivalents and Short-Term Investments | 120.98M | 114.66M | 49.88M | 158.80M | 115.16M |
| Total Debt | 1.18B | 915.83M | 926.27M | 839.98M | 542.48M |
| Total Liabilities | 1.42B | 1.32B | 1.25B | 1.10B | 723.58M |
| Stockholders Equity | 604.31M | 537.65M | 454.67M | 401.51M | 350.21M |
Cash Flow | |||||
| Free Cash Flow | 87.79M | 103.56M | 4.21M | -22.71M | -58.70M |
| Operating Cash Flow | 129.22M | 153.06M | 61.64M | 23.13M | -19.90M |
| Investing Cash Flow | -46.76M | -49.82M | -179.31M | -232.02M | -48.99M |
| Financing Cash Flow | -76.22M | -38.48M | 9.01M | 253.22M | -9.22M |
The Chefs' Warehouse Technical Analysis
Negative
59.22
Price Trends
64.16
Negative
62.85
Negative
62.54
Negative
Market Momentum
-1.74
Positive
41.09
Neutral
30.99
Neutral
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 59.22 is below the 20-day moving average (MA) of 60.93, below the 50-day MA of 64.16, and below the 200-day MA of 62.54, indicating a bearish trend. The MACD of -1.74 indicates Positive momentum. The RSI at 41.09 is Neutral, neither overbought nor oversold. The STOCH value of 30.99 is Neutral, 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 35 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $20.05B | 25.64 | 15.01% | ― | 4.80% | 3.49% | |
69 Neutral | $2.41B | 28.36 | 12.69% | ― | 8.88% | 54.12% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
61 Neutral | $2.76B | 28.34 | -4.97% | ― | 1.45% | -5.49% | |
59 Neutral | $35.08B | 22.87 | 88.72% | 2.84% | 2.92% | -4.06% | |
57 Neutral | $13.51B | 57.89 | 7.66% | ― | 10.55% | -23.38% |
* Consumer Defensive Sector Average
CHEF
The Chefs' Warehouse
59.22
9.78
19.78%
SYY
Sysco
73.24
5.72
8.47%
UNFI
United Natural Foods
45.37
21.04
86.48%
PFGC
Performance Food Group
85.97
14.35
20.04%
USFD
US Foods Holding
90.91
30.44
50.34%
The Chefs' Warehouse Corporate Events
Business Operations and StrategyFinancial Disclosures
Chefs’ Warehouse Issues Strong Fiscal 2026 Growth Outlook
Positive
Jan 13, 2026
On January 12, 2026, The Chefs’ Warehouse announced preliminary fiscal 2026 guidance following a strong fourth quarter of 2025, projecting net sales between $4.35 billion and $4.45 billion, gross profit of $1.053 billion to $1.076 billion, a...
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.