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The Chefs' Warehouse Inc. (CHEF)
NASDAQ:CHEF
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The Chefs' Warehouse (CHEF) AI Stock Analysis

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CHEF

The Chefs' Warehouse

(NASDAQ:CHEF)

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Outperform 75 (OpenAI - 4o)
Rating:75Outperform
Price Target:
$68.00
▲(16.16% Upside)
The Chefs' Warehouse shows strong financial performance and positive earnings call sentiment, driving its overall score. Despite technical indicators suggesting a bearish trend, the company's robust financial health and strategic initiatives provide a solid foundation. However, the high P/E ratio and lack of dividend yield present valuation concerns.
Positive Factors
Revenue Growth
The consistent revenue growth indicates strong market demand and effective sales strategies, reinforcing the company's competitive position in the specialty food distribution sector.
Cash Flow Strength
Robust cash flow generation enhances financial flexibility and supports strategic investments, ensuring long-term business sustainability and growth opportunities.
Gross Profit Improvement
Improved gross profit margins reflect better cost management and pricing power, contributing to enhanced profitability and competitive advantage in the market.
Negative Factors
High Operating Expenses
Rising operating expenses can pressure profit margins and reduce financial efficiency, potentially impacting long-term profitability if not managed effectively.
Inflation Impact
High inflation rates can erode purchasing power and increase costs, challenging margin sustainability and necessitating strategic pricing adjustments.
Center-of-the-Plate Volume Decline
A decline in center-of-the-plate volumes may indicate shifting consumer preferences or competitive pressures, potentially affecting revenue streams and market share.

The Chefs' Warehouse (CHEF) vs. SPDR S&P 500 ETF (SPY)

The Chefs' Warehouse Business Overview & Revenue Model

Company DescriptionThe 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 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 shows strong financial recovery with significant revenue growth and improved profitability. The income statement reflects a substantial increase in total revenue and gross profit margins. The balance sheet indicates effective leverage management, although high debt levels remain a concern. Cash flow has improved, demonstrating robust cash generation and efficient capital allocation.
Income Statement
85
Very Positive
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
70
Positive
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
80
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue3.87B3.79B3.43B2.61B1.75B1.11B
Gross Profit930.71M914.15M814.47M618.64M390.49M248.15M
EBITDA185.45M193.14M156.55M85.74M10.81M-68.69M
Net Income63.84M55.48M34.59M27.75M-4.92M-82.90M
Balance Sheet
Total Assets1.84B1.86B1.71B1.51B1.07B974.33M
Cash, Cash Equivalents and Short-Term Investments116.53M114.66M49.88M158.80M115.16M193.28M
Total Debt911.89M915.83M926.27M832.77M542.48M530.48M
Total Liabilities1.30B1.32B1.25B1.10B723.58M629.74M
Stockholders Equity541.64M537.65M454.67M401.51M350.21M344.59M
Cash Flow
Free Cash Flow126.94M103.56M4.21M-22.71M-58.70M35.84M
Operating Cash Flow171.73M153.06M61.64M23.13M-19.90M42.88M
Investing Cash Flow-44.78M-49.82M-179.31M-232.02M-48.99M-67.97M
Financing Cash Flow-52.64M-38.48M9.01M253.22M-9.22M78.06M

The Chefs' Warehouse Technical Analysis

Technical Analysis Sentiment
Negative
Last Price58.54
Price Trends
50DMA
63.77
Negative
100DMA
63.53
Negative
200DMA
58.83
Negative
Market Momentum
MACD
-0.98
Positive
RSI
35.83
Neutral
STOCH
5.14
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 58.54 is below the 20-day moving average (MA) of 63.87, below the 50-day MA of 63.77, and below the 200-day MA of 58.83, indicating a bearish trend. The MACD of -0.98 indicates Positive momentum. The RSI at 35.83 is Neutral, neither overbought nor oversold. The STOCH value of 5.14 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$2.39B36.1313.64%7.90%68.05%
74
Outperform
39.18B21.7499.89%2.53%3.21%-4.03%
74
Outperform
16.32B47.967.61%8.61%-22.16%
69
Neutral
17.25B32.7411.95%5.32%11.65%
66
Neutral
1.92B-27.746.62%53.12%
58
Neutral
910.78M-56.39-2.14%3.26%1.54%-134.75%
62
Neutral
$20.33B14.63-3.31%3.23%1.93%-12.26%
* Consumer Defensive Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CHEF
The Chefs' Warehouse
58.54
16.53
39.35%
SPTN
SpartanNash Co
26.90
5.44
25.35%
SYY
Sysco
81.94
5.98
7.87%
UNFI
United Natural Foods
31.62
14.80
87.99%
PFGC
Performance Food Group
104.30
25.93
33.09%
USFD
US Foods Holding
76.60
15.10
24.55%

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.Date of analysis: Sep 23, 2025