Chefs’ Warehouse (NASDAQ:CHEF) Issues Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Chefs’ Warehouse (NASDAQ:CHEF) posted its earnings results on Wednesday. The company reported $0.66 EPS for the quarter, topping the consensus estimate of $0.59 by $0.07, Zacks reports. The business had revenue of $1.14 billion for the quarter, compared to analysts’ expectations of $1.12 billion. During the same quarter in the previous year, the firm earned $0.50 earnings per share. Chefs’ Warehouse’s quarterly revenue was up 11.2% compared to the same quarter last year.

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

• Strong third-quarter growth: Net sales rose 11.2% to $1.135 billion, organic sales increased 10.3%, and adjusted EBITDA grew 26% to $82.2 million. Gross margin expanded 84 basis points to 25%, supported by favorable product mix, pricing, procurement, and operational execution.
• Management reported continued momentum into October, with double-digit growth, increasing unique customers and item placements, and strong demand for private, corporate, and holiday events. The company raised full-year 2026 guidance to $4.56-$4.61 billion in sales and $317-$321 million in adjusted EBITDA.
• Management expects further margin and efficiency opportunities from facility expansion and consolidation, greater procurement scale, digital tools, and AI-enabled pricing and sales processes. These initiatives are viewed as potential upside to the company’s 2030 targets, although no major AI benefits are included in current forecasts.
• The company completed a refinancing involving a new $675 million seven-year term loan and settlement of its convertible notes, including approximately 2.7 million shares issued to noteholders. Fourth-quarter interest expense is expected at $15.5-$17.5 million, including about $2.7 million of one-time refinancing costs.
• Higher fuel, freight, compensation, facilities, distribution, and depreciation costs are pressuring operating expenses, while management remains cautious about Middle East conditions and December tourism trends. Year-end net debt is expected to rise to $550-$600 million, with leverage increasing to approximately 1.7-2.0 times adjusted EBITDA.

Chefs’ Warehouse Stock Up 2.2%

NASDAQ:CHEF traded up $2.37 during midday trading on Wednesday, hitting $111.36. The company had a trading volume of 164,960 shares, compared to its average volume of 539,220. Chefs’ Warehouse has a 52-week low of $56.46 and a 52-week high of $118.51. The stock’s fifty day moving average price is $110.96 and its 200-day moving average price is $86.15.

Insider Buying and Selling at Chefs’ Warehouse

In other news, General Counsel Alexandros Aldous sold 35,000 shares of the company’s stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $110.97, for a total value of $3,883,950.00. Following the completion of the transaction, the general counsel directly owned 34,442 shares in the company, valued at approximately $3,822,028.74. This represents a 50.40% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Christopher Pappas sold 100,000 shares of the stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $110.11, for a total value of $11,011,000.00. Following the transaction, the chief executive officer owned 2,105,480 shares in the company, valued at $231,834,402.80. This trade represents a 4.53% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 137,752 shares of company stock worth $15,203,174 over the last 90 days. Corporate insiders own 11.10% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts have weighed in on the company. UBS Group raised their price target on Chefs’ Warehouse from $114.00 to $125.00 and gave the company a “buy” rating in a report on Thursday, July 30th. Weiss Ratings raised Chefs’ Warehouse from a “buy (b-)” rating to a “buy (b)” rating in a report on Friday, September 18th. BTIG Research upped their price objective on shares of Chefs’ Warehouse from $100.00 to $125.00 and gave the stock a “buy” rating in a research report on Thursday, July 30th. TD Cowen raised their target price on shares of Chefs’ Warehouse from $123.00 to $131.00 and gave the company a “buy” rating in a research note on Friday, September 11th. Finally, Wall Street Zen raised shares of Chefs’ Warehouse from a “hold” rating to a “buy” rating in a research note on Saturday, July 18th. Five investment analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Chefs’ Warehouse presently has an average rating of “Moderate Buy” and a consensus price target of $118.33.

Chefs’ Warehouse Company Profile

Chefs’ Warehouse, Inc is a specialty food distributor serving professional chefs, restaurants, hotels, caterers, culinary institutions and other foodservice customers. The company supplies a broad range of products, including fresh produce, seafood, meat, poultry, dairy, specialty and imported foods, center-of-the-plate items, dry goods, and other ingredients used in commercial kitchens.

Founded in 1985, Chefs’ Warehouse has expanded from a regional distributor into a North American foodservice platform.