Chefs’ Warehouse (NASDAQ:CHEF) Issues Earnings Results

Chefs’ Warehouse (NASDAQ:CHEF) released its quarterly earnings results on Wednesday. The company reported $0.78 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.59 by $0.19, Zacks reports. Chefs’ Warehouse had a return on equity of 15.54% and a net margin of 1.87%.The firm had revenue of $1.17 billion for the quarter, compared to the consensus estimate of $1.12 billion. During the same period last year, the business posted $0.52 EPS. The company’s revenue for the quarter was up 12.9% on a year-over-year basis.

Here are the key takeaways from Chefs’ Warehouse’s conference call:

• Strong second-quarter performance: Net sales rose 12.9% to $1.169 billion, while adjusted EBITDA increased 35% to $88.1 million. Gross margin expanded 49 basis points to 25.1%, and adjusted EPS rose to $0.78 from $0.52.
• The company raised its 2026 outlook to $4.5 billion-$4.6 billion in sales, $1.102 billion-$1.125 billion in gross profit, and $305 million-$315 million in adjusted EBITDA. Management said momentum continued into July, with double-digit top-line growth expected to begin the third quarter.
• Chefs’ Warehouse introduced longer-term 2030 targets calling for $6 billion-$6.5 billion in revenue and $450 million-$520 million in adjusted EBITDA, supported by 7%-10% annual growth, market-share gains, facility investments, and operating leverage.
• Management highlighted continued investments in sales talent, distribution capacity, AI and other technology, pricing, procurement, and inventory management. Executives expect these tools to improve efficiency and customer service, though they cautioned that benefits should accrue incrementally rather than create an immediate step-change in margins.
• The Middle East business improved to roughly 94% of the prior-year level during May and June, but tourism uncertainty and higher logistics costs remain risks. The company also cited elevated fuel costs and a “frothier” M&A environment, while maintaining a disciplined approach to acquisitions and planning greater share repurchases within its leverage target.

Chefs’ Warehouse Price Performance

Shares of CHEF stock traded up $9.25 on Wednesday, reaching $109.43. The company’s stock had a trading volume of 325,093 shares, compared to its average volume of 489,723. The stock’s fifty day simple moving average is $90.08 and its 200-day simple moving average is $74.62. Chefs’ Warehouse has a 1 year low of $53.20 and a 1 year high of $112.14. The company has a market capitalization of $4.46 billion, a price-to-earnings ratio of 61.06 and a beta of 1.39. The company has a current ratio of 2.18, a quick ratio of 1.33 and a debt-to-equity ratio of 1.18.

Analyst Upgrades and Downgrades

CHEF has been the topic of a number of recent research reports. Wall Street Zen raised Chefs’ Warehouse from a “hold” rating to a “buy” rating in a report on Saturday, July 18th. Benchmark upped their price target on Chefs’ Warehouse from $90.00 to $106.00 and gave the stock a “buy” rating in a research report on Tuesday, July 14th. Morgan Stanley cut shares of Chefs’ Warehouse from an “overweight” rating to an “equal weight” rating and raised their target price for the stock from $83.00 to $97.00 in a research note on Wednesday, July 15th. TD Cowen started coverage on Chefs’ Warehouse in a research note on Tuesday, July 7th. They issued a “buy” rating and a $110.00 price target for the company. Finally, UBS Group decreased their target price on Chefs’ Warehouse from $83.00 to $80.00 and set a “buy” rating on the stock in a research note on Thursday, April 23rd. Four investment analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. Based on data from MarketBeat.com, Chefs’ Warehouse presently has a consensus rating of “Moderate Buy” and an average target price of $91.86.

Key Stories Impacting Chefs’ Warehouse

Here are the key news stories impacting Chefs’ Warehouse this week:

• Positive Sentiment: Second-quarter adjusted earnings were $0.78 per share, above the $0.59–$0.64 analyst consensus range and up from $0.52 in the year-ago quarter. Chefs’ Warehouse Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Revenue reached $1.17 billion, exceeding the $1.12 billion consensus estimate and rising 12.9% year over year, indicating continued demand for the specialty food distributor’s products. The Chefs’ Warehouse Reports Second Quarter 2026 Financial Results
• Positive Sentiment: The company’s profitability also improved year over year, with return on equity of 15.54% and net margin of 1.87%, reinforcing the positive reaction to the quarterly results. Chefs’ Warehouse Earnings Report
• Neutral Sentiment: Chefs’ Warehouse guided to fiscal 2026 revenue of $4.5 billion to $4.6 billion, broadly consistent with the approximately $4.5 billion analyst expectation. The available update did not provide a new EPS target, limiting the extent of the guidance upside. Chefs’ Warehouse Guidance

Insiders Place Their Bets

In other news, insider Christina Polychroni sold 4,500 shares of the business’s stock in a transaction dated Tuesday, May 19th. The shares were sold at an average price of $79.21, for a total value of $356,445.00. Following the sale, the insider directly owned 24,642 shares in the company, valued at $1,951,892.82. The trade was a 15.44% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Christopher Pappas sold 125,000 shares of the business’s stock in a transaction dated Tuesday, May 5th. The stock was sold at an average price of $78.00, for a total transaction of $9,750,000.00. Following the completion of the sale, the chief executive officer owned 2,189,453 shares in the company, valued at approximately $170,777,334. This trade represents a 5.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 11.10% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. AQR Capital Management LLC purchased a new stake in Chefs’ Warehouse in the first quarter worth about $352,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Chefs’ Warehouse by 6.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 21,152 shares of the company’s stock valued at $1,152,000 after buying an additional 1,247 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its position in shares of Chefs’ Warehouse by 50.2% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 130,382 shares of the company’s stock worth $7,101,000 after buying an additional 43,593 shares during the last quarter. Strs Ohio bought a new position in shares of Chefs’ Warehouse during the 1st quarter worth approximately $98,000. Finally, Marshall Wace LLP purchased a new stake in Chefs’ Warehouse during the second quarter valued at approximately $243,000. Institutional investors own 91.55% of the company’s stock.

Chefs’ Warehouse Company Profile

Chefs’ Warehouse, Inc is a specialty food distributor that supplies a broad range of high‐end ingredients and culinary products to professional chefs, restaurants, hotels, and other foodservice operators. Headquartered in Maspeth, New York, the company sources its portfolio from local artisans, boutique producers and leading global suppliers. Its core offerings include fresh and frozen proteins, specialty cuts of meat and seafood, handcrafted cheeses and charcuterie, seasonal produce, value‐added preparations, pantry staples and premium desserts and beverages.

The company operates a network of distribution centers strategically located in major metropolitan markets across North America.