The Chefs' Warehouse (CHEF) AI Stock Analysis

• Market Cap: $2.66B
• Dividend Yield: N/A
• Average Volume (3M): 496.07K
• Price to Earnings (P/E): 42.7
• Beta (1Y): 1.67
• Revenue Growth: 7.85%
• EPS Growth: 79.89%
• Country: US
• Employees: 5,029
• Sector: Consumer Cyclical
• Sector Strength: 74
• Industry: Food Distribution
• EPS (TTM): 0.25
• Shares Outstanding: 40,683,510
• 10 Day Avg. Volume: 398,787
• 30 Day Avg. Volume: 496,073
• PEG Ratio: 2.50
• Price to Book (P/B): 4.42
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.81
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 0.22
• Enterprise Value/Gross Profit: 3.56
• Enterprise Value/Ebitda: 4.69
• 1Y Price Target: $68.67
• Price Target Upside: 7.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 74 Outperform
• Price Target: ―

The Chefs' Warehouse demonstrates strong financial performance with significant improvements in revenue, profitability, and cash flow. Technical indicators show positive momentum, though the stock may be approaching overbought levels. The high P/E ratio raises valuation concerns, but the earnings call highlights ongoing growth and strategic digital expansion. Overall, the company is well-positioned, but caution is advised due to high leverage and valuation metrics.

Positive Factors

Market Positioning

The company is leveraging competitive advantages with improving sales force capabilities, which should help navigate and outperform in an uncertain backdrop.

Operational Efficiency

Operational efficiencies are materializing, contributing to EBITDA upside and are supported by recent investments and cost-saving efforts.

Negative Factors

Capital Expenditure

The cost of a new warehouse facility is 3x what it was pre-COVID, which favors larger operators and challenges smaller ones.

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 wholesale distribution of specialty food products to the foodservice industry. The company's key revenue streams include sales of premium ingredients, such as meats, cheeses, oils, and condiments, to restaurants and culinary establishments. Additionally, The Chefs' Warehouse benefits from strategic partnerships with artisanal and specialty food producers, enhancing its product offerings and appeal to high-end culinary clients. The company also leverages its logistics and distribution network to ensure timely delivery of products, contributing to its revenue growth and customer retention.

The Chefs' Warehouse Financial Statement Overview

Summary

The Chefs' Warehouse shows strong financial recovery with significant revenue and profit growth, effective leverage management, and robust cash flow improvements, despite carrying high leverage.

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
	EBIT
134.94M	128.21M	100.94M	85.74M	10.81M	-102.66M
	EBITDA
185.45M	193.14M	156.55M	85.74M	10.81M	-68.69M
	Net Income Common Stockholders
63.84M	55.48M	34.59M	27.75M	-4.92M	-82.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
116.53M	114.66M	49.88M	158.80M	115.16M	193.28M
	Total Assets
1.84B	1.86B	1.71B	1.51B	1.07B	974.33M
	Total Debt
911.89M	915.83M	926.27M	832.77M	542.48M	530.48M
	Net Debt
795.36M	801.17M	876.39M	673.97M	427.32M	337.20M
	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: 63.94
• 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 63.94 is above the 20-day moving average (MA) of 60.23, above the 50-day MA of 55.80, and above the 200-day MA of 48.88, indicating a bullish trend. The MACD of 2.70 indicates Negative momentum. The RSI at 67.05 is Neutral, neither overbought nor oversold. The STOCH value of 84.46 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
PFGC	79 Outperform	$13.67B	36.42	9.05%	―	6.20%	-10.58%
USFD	77 Outperform	$18.01B	34.98	11.16%	―	6.32%	5.69%
CHEF	74 Outperform	$2.66B	42.66	12.90%	―	7.85%	79.89%
SYY	74 Outperform	$35.39B	18.88	94.91%	2.77%	3.55%	-5.79%
SPTN	63 Neutral	$668.12M	2,268.97	0.04%	4.36%	-2.66%	8.18%
UNFI	63 Neutral	$1.87B	―	-4.94%	―	4.73%	29.70%
Sector *	62 Neutral	$6.97B	11.36	2.77%	3.91%	2.66%	-22.00%

The Chefs' Warehouse Corporate Events

The Chefs’ Warehouse Elects New Directors at Annual Meeting

At the 2025 Annual Meeting, The Chefs’ Warehouse stockholders elected several directors to serve until 2026, with Richard N. Peretz failing to secure the necessary votes, prompting a review by the Nominating and Governance Committee. Additionally, stockholders approved the ratification of BDO USA, P.C. as the independent auditor, endorsed executive compensation on an advisory basis, and amended the 2019 Omnibus Equity Incentive Plan, reflecting continued support for the company’s governance and strategic initiatives.

The most recent analyst rating on (CHEF) stock is a Buy with a $51.00 price target. To see the full list of analyst forecasts on The Chefs’ Warehouse stock, see the CHEF Stock Forecast page.