The Chefs' Warehouse (CHEF) AI Stock Analysis

• Market Cap: $2.66B
• Dividend Yield: N/A
• Average Volume (3M): 478.75K
• Price to Earnings (P/E): 40.3
• Beta (1Y): 1.48
• Revenue Growth: 7.90%
• EPS Growth: 68.05%
• Country: US
• Employees: 5,029
• Sector: Consumer Defensive
• Sector Strength: 45
• Industry: Food Distribution
• EPS (TTM): 0.52
• Shares Outstanding: 40,762,657
• 10 Day Avg. Volume: 384,855
• 30 Day Avg. Volume: 478,752
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.41
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 4.04
• Enterprise Value/Ebitda: 20.26
• 1Y Price Target: $76.14
• Price Target Upside: 19.02% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 73 Outperform
• Price Target: $71.00 ▲(10.99% Upside)

The Chefs' Warehouse receives a solid score driven by strong financial performance and a positive earnings call. The company's robust revenue growth and improved profitability are significant strengths. However, the high P/E ratio and neutral technical indicators suggest caution. The absence of a dividend yield and high debt levels are additional considerations.

Positive Factors

Financial Performance

The Chefs’ Warehouse reported better than expected revenue and gross margin performance, driven by organic case growth, unique customer growth, and placement growth.

Guidance and Outlook

Management raised all elements of prior annual guidance due to strong results and continued momentum, reflecting confidence in future performance.

Operational Efficiency

Profitability measures continue to improve for CHEF, with increased gross profit per truck roll and higher EBITDA per employee, indicating greater operational efficiency.

Negative Factors

Market Position

CHEF currently trades at a ~12x forward EV / EBITDA multiple, which is a modest premium to its larger Broadline Distributor peers, making the risk-reward relatively balanced.

Revenue Impact

The rationalization of the acquired Hardies business, including exiting low margin lines, caused a net drag to revenue, although it was partially offset by pricing benefits.

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 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 Financial Statement Overview

Summary

The Chefs' Warehouse demonstrates strong revenue growth and improved profitability, with significant improvements in gross and net profit margins. While the balance sheet shows effective leverage management, the company still carries a substantial amount of debt. Cash flows have strengthened significantly, indicating efficient cash management and solid operational cash generation.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.87B	3.79B	3.43B	2.61B	1.75B	1.11B
Gross Profit	930.71M	914.15M	814.47M	618.64M	390.49M	248.15M
EBITDA	185.45M	193.14M	156.55M	85.74M	10.81M	-68.69M
Net Income	63.84M	55.48M	34.59M	27.75M	-4.92M	-82.90M
Balance Sheet
Total Assets	1.84B	1.86B	1.71B	1.51B	1.07B	974.33M
Cash, Cash Equivalents and Short-Term Investments	116.53M	114.66M	49.88M	158.80M	115.16M	193.28M
Total Debt	911.89M	915.83M	926.27M	832.77M	542.48M	530.48M
Total Liabilities	1.30B	1.32B	1.25B	1.10B	723.58M	629.74M
Stockholders Equity	541.64M	537.65M	454.67M	401.51M	350.21M	344.59M
Cash Flow
Free Cash Flow	126.94M	103.56M	4.21M	-22.71M	-58.70M	35.84M
Operating Cash Flow	171.73M	153.06M	61.64M	23.13M	-19.90M	42.88M
Investing Cash Flow	-44.78M	-49.82M	-179.31M	-232.02M	-48.99M	-67.97M
Financing Cash Flow	-52.64M	-38.48M	9.01M	253.22M	-9.22M	78.06M

The Chefs' Warehouse Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 63.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 63.97 is above the 20-day moving average (MA) of 63.00, above the 50-day MA of 63.91, and above the 200-day MA of 57.38, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 51.39 is Neutral, neither overbought nor oversold. The STOCH value of 73.34 is Neutral, 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
PFGC	78 Outperform	$16.47B	48.47	7.91%	―	8.61%	-22.16%
CHEF	73 Outperform	$2.66B	40.27	13.64%	―	7.90%	68.05%
SYY	73 Outperform	$39.46B	21.72	99.08%	2.51%	3.21%	-4.03%
USFD	71 Outperform	$17.56B	33.34	11.48%	―	5.32%	11.65%
UNFI	66 Neutral	$1.75B	―	-4.11%	―	6.62%	53.12%
Sector *	63 Neutral	$20.50B	14.76	-2.72%	3.09%	1.90%	-4.74%
SPTN	58 Neutral	$907.74M	2,245.98	-2.08%	3.26%	1.54%	-134.75%

The Chefs' Warehouse Corporate Events

The Chefs’ Warehouse Amends Term Loan Agreement

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.