Chefs’ Warehouse (NASDAQ:CHEF – Get Free Report) posted its quarterly earnings data on Wednesday. The company reported $0.66 earnings per share for the quarter, topping the consensus estimate of $0.59 by $0.07, Zacks reports. The firm had revenue of $1.14 billion during the quarter, compared to analysts’ expectations of $1.12 billion. Chefs’ Warehouse had a net margin of 2.09% and a return on equity of 16.95%. Chefs’ Warehouse’s revenue was up 11.2% on a year-over-year basis. During the same quarter in the previous year, the company posted $0.50 EPS.
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 Price Performance
NASDAQ:CHEF traded down $1.60 during trading hours on Thursday, hitting $105.79. 120,158 shares of the company’s stock traded hands, compared to its average volume of 540,074. The business’s fifty day simple moving average is $110.94 and its two-hundred day simple moving average is $86.38. Chefs’ Warehouse has a 52 week low of $56.46 and a 52 week high of $118.51. The firm has a market cap of $4.32 billion, a P/E ratio of 50.51 and a beta of 1.44. The company has a quick ratio of 1.31, a current ratio of 2.15 and a debt-to-equity ratio of 1.07.
Insider Activity at Chefs’ Warehouse
In related news, 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 completion of the transaction, the chief executive officer directly owned 2,105,480 shares in the company, valued at $231,834,402.80. This trade represents a 4.53% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, General Counsel Alexandros Aldous sold 35,000 shares of the stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $110.97, for a total transaction of $3,883,950.00. Following the sale, the general counsel directly owned 34,442 shares in the company, valued at $3,822,028.74. This trade represents a 50.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last 90 days, insiders have sold 137,752 shares of company stock valued at $15,203,174. Insiders own 11.10% of the company’s stock.
Chefs’ Warehouse News Summary
Here are the key news stories impacting Chefs’ Warehouse this week:
- Positive Sentiment: Third-quarter adjusted earnings reached $0.66 per share, exceeding the $0.59 analyst consensus and rising from $0.50 in the year-ago period. Revenue increased 11.2% year over year to approximately $1.14 billion, also surpassing estimates of $1.12 billion. Chefs’ Warehouse Q3 Earnings and Revenues Surpass Estimates
- Positive Sentiment: Management raised its full-year 2026 outlook, forecasting net sales of $4.56 billion to $4.61 billion and adjusted EBITDA of $317 million to $321 million. The improved forecast reflects continued demand, including expectations for a strong holiday season. Chefs’ Warehouse Forecasts 2026 Sales and EBITDA
- Neutral Sentiment: The company completed a debt refinancing while issuing the higher outlook. Refinancing could improve financial flexibility, but Chefs’ Warehouse still carries meaningful leverage, with a debt-to-equity ratio of 1.07. Q3 2026 Earnings Call Transcript
- Negative Sentiment: Despite the earnings beat and raised guidance, the stock sold off after its initial advance. Investors may be concerned that the shares already reflect substantial optimism: CHEF trades at a P/E ratio of roughly 51, near its 52-week high and well above its 50-day moving average. Why Chefs’ Warehouse Stock Popped Then Dropped
Analysts Set New Price Targets
A number of equities analysts recently commented on CHEF shares. Morgan Stanley set a $121.00 price target on Chefs’ Warehouse in a report on Thursday. TD Cowen boosted their price target on Chefs’ Warehouse from $123.00 to $131.00 and gave the company a “buy” rating in a research note on Friday, September 11th. Benchmark increased their target price on Chefs’ Warehouse from $106.00 to $125.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. BTIG Research upped their price target on shares of Chefs’ Warehouse from $100.00 to $125.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. Finally, Wall Street Zen upgraded shares of Chefs’ Warehouse from a “hold” rating to a “buy” rating in a research report on Saturday, July 18th. Five research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus target price of $120.17.
Read Our Latest Analysis on Chefs’ Warehouse
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.
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