Chefs’ Warehouse (NASDAQ:CHEF) Posts Quarterly Earnings Results

Chefs’ Warehouse (NASDAQ:CHEF) announced its quarterly earnings results on Wednesday. The company reported $0.78 earnings per share for the quarter, beating the consensus estimate of $0.59 by $0.19, Zacks reports. The company had revenue of $1.17 billion during the quarter, compared to analysts’ expectations of $1.12 billion. Chefs’ Warehouse had a return on equity of 16.95% and a net margin of 2.09%.The firm’s quarterly revenue was up 12.9% compared to the same quarter last year. During the same period in the previous year, the business earned $0.52 earnings per share.

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

CHEF traded up $1.32 during midday trading on Friday, hitting $113.55. The stock had a trading volume of 275,411 shares, compared to its average volume of 501,459. Chefs’ Warehouse has a 1 year low of $53.20 and a 1 year high of $112.89. The company has a debt-to-equity ratio of 1.07, a quick ratio of 1.33 and a current ratio of 2.15. The business has a fifty day moving average of $91.33 and a 200 day moving average of $75.30. The company has a market cap of $4.63 billion, a P/E ratio of 54.01 and a beta of 1.39.

Insider Activity

In related news, insider Christina Polychroni sold 4,500 shares of the firm’s stock in a transaction that occurred on Tuesday, May 19th. The stock was sold at an average price of $79.21, for a total transaction of $356,445.00. Following the transaction, the insider directly owned 24,642 shares in the company, valued at $1,951,892.82. This trade represents a 15.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Christopher Pappas sold 125,000 shares of Chefs’ Warehouse stock in a transaction on 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 transaction, the chief executive officer directly owned 2,189,453 shares in the company, valued at approximately $170,777,334. The trade was a 5.40% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 11.10% of the company’s stock.

Hedge Funds Weigh In On Chefs’ Warehouse

Hedge funds and other institutional investors have recently modified their holdings of the company. HighTower Advisors LLC grew its holdings in Chefs’ Warehouse by 1.7% during the fourth quarter. HighTower Advisors LLC now owns 9,536 shares of the company’s stock valued at $594,000 after purchasing an additional 161 shares during the period. Osaic Holdings Inc. increased its holdings in Chefs’ Warehouse by 30.7% in the 2nd quarter. Osaic Holdings Inc. now owns 800 shares of the company’s stock worth $51,000 after acquiring an additional 188 shares in the last quarter. Tidal Investments LLC raised its stake in Chefs’ Warehouse by 4.9% during the 2nd quarter. Tidal Investments LLC now owns 4,341 shares of the company’s stock worth $277,000 after acquiring an additional 204 shares during the period. California State Teachers Retirement System boosted its position in shares of Chefs’ Warehouse by 1.2% in the second quarter. California State Teachers Retirement System now owns 33,166 shares of the company’s stock worth $2,116,000 after purchasing an additional 406 shares during the period. Finally, Caitong International Asset Management Co. Ltd raised its position in shares of Chefs’ Warehouse by 515.3% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 523 shares of the company’s stock valued at $31,000 after purchasing an additional 438 shares during the period. 91.55% of the stock is owned by institutional investors.

Key Headlines Impacting Chefs’ Warehouse

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

• Positive Sentiment: Strong Q2 earnings beat expectations. CHEF reported adjusted earnings of $0.78 per share versus the $0.59 consensus estimate, while revenue reached $1.17 billion, ahead of the $1.12 billion forecast. Revenue increased 12.9% year over year, supported by higher volumes, customer growth and margin expansion. CHEF Q2 Earnings Beat Estimates on Volume and Margin Gains
• Positive Sentiment: Analysts raised their targets following the results. Benchmark increased its target from $106 to $125 and maintained a Buy rating. BTIG also raised its target to $125 from $100 and maintained Buy, signaling continued confidence in CHEF’s growth and profitability. Chefs’ Warehouse Price Target Raised to $125 at Benchmark
• Positive Sentiment: The stock reached a new 52-week high. The strong earnings report and fiscal 2026 revenue outlook have increased investor momentum and reinforced the bullish case for the shares. The Chefs’ Warehouse Shares Rise After FY26 Revenue Outlook and Earnings Beat
• Neutral Sentiment: Analyst views are not unanimous. Morgan Stanley raised its target from $97 to $104 but retained an Equal Weight rating; that target remains below the recent trading level, suggesting more cautious valuation expectations.
• Negative Sentiment: Recent insider selling may temper enthusiasm. Reported transactions showed company insiders selling shares over the past six months without recorded purchases. While these sales may reflect personal or compensation-related decisions, they can create a modest sentiment overhang after the stock’s sharp advance.

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on the company. Wall Street Zen raised Chefs’ Warehouse from a “hold” rating to a “buy” rating in a report on Saturday, July 18th. Weiss Ratings restated a “hold (c+)” rating on shares of Chefs’ Warehouse in a research report on Wednesday. BTIG Research boosted their price objective on shares of Chefs’ Warehouse from $100.00 to $125.00 and gave the company a “buy” rating in a research note on Thursday. Morgan Stanley upped their target price on shares of Chefs’ Warehouse from $97.00 to $104.00 and gave the stock an “equal weight” rating in a report on Thursday. Finally, TD Cowen increased their target price on shares of Chefs’ Warehouse from $110.00 to $123.00 and gave the stock a “buy” rating in a research note on Wednesday. Four investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $107.43.

About Chefs’ Warehouse

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.