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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on CHEF

The Chefs' Warehouse's recent performance was driven by strong Q1 2025 earnings and revenue beat, surpassing the Zacks Consensus Estimate of $0.21 per share with $0.25 per share. This marks a significant improvement from the same period last year, where earnings were $0.15 per share. The company's ability to deliver solid financial results, particularly in the first quarter, is a testament to its operational efficiency and market demand for its specialty food products.

1.c. Company Highlights

2. The Chefs' Warehouse Beats Earnings Expectations with 9.6% Revenue Growth

The Chefs' Warehouse reported a strong third quarter with net sales increasing by 9.6% to $1.021 billion, driven by a 7.4% net inflation and a 7.7% growth in specialty sales. Gross profit margins expanded by 7 basis points to 24.2%, resulting in a 10% increase in gross profit to $247.2 million. The company's EPS came in at $0.5, beating estimates of $0.43. The revenue growth was largely driven by price increases, with protein prices being 5% higher year-over-year, excluding the Texas transition.

Publication Date: Nov -24

📋 Highlights
  • Net Sales Growth: Increased 9.6% to $1.021 billion in Q3 2025 vs. $931.5 million in Q3 2024.
  • Gross Profit Expansion: Rose 10% to $247.2 million, with margins up 7 bps to 24.2%.
  • Category Inflation: Center-of-the-plate inflation reached 12.3%, specialty at 4.4%, netting 7.4% overall.
  • Revenue Guidance Raised: Full-year revenue midpoint increased $50–$70 million; EBITDA raised $5–$7 million.
  • Middle East Recovery: Double-digit growth in the region despite temporary Qatar conflict disruptions.

Operational Highlights

The company's operating divisions delivered strong growth in revenue and gross profit dollars, driven by its ability to secure the supply chain and hold prices. The sales force training and investment in digital tools have also contributed to the company's acceleration, with digital penetration exceeding 60%. The Chefs' Middle East business experienced a temporary impact from the Qatar conflict but has started to recover, with the company expanding its capacity in the region and seeing double-digit growth.

Acquisitions and Growth Initiatives

The company is excited about the acquisition of Italco, a small, high-quality company with a similar catalog of high-end products, which will provide opportunities for growth in Colorado. The company's organic growth initiatives are also starting to fill in, with optimism about the holiday season and opportunities for growth in Texas, Florida, and California.

Valuation and Outlook

With a P/E Ratio of 30.28 and an EV/EBITDA of 12.6, the company's valuation appears to be reasonable, considering its growth prospects. Analysts estimate revenue growth at 7.1% next year, which suggests that the company's current valuation is priced for moderate growth. The company's ROIC of 6.78% and ROE of 13.48% indicate a relatively efficient use of capital. The midpoint of the updated guidance implies a slowdown in adjusted EBITDA growth, but the company has raised its full-year revenue guidance by $50 million to $70 million.

3. NewsRoom

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Is The Chef's Warehouse (CHEF) Outperforming Other Consumer Staples Stocks This Year?

Dec -03

Source: zacks.com

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The Chefs' Warehouse, Inc. (CHEF) Presents at Morgan Stanley Global Consumer & Retail Conference 2025 Transcript

Dec -02

Source: seekingalpha.com

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What Makes Chefs' Warehouse (CHEF) a New Strong Buy Stock

Nov -28

Source: zacks.com

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Envestnet Asset Management Inc. Purchases 2,335 Shares of The Chefs’ Warehouse, Inc. $CHEF

Nov -27

Source: defenseworld.net

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The Chefs’ Warehouse, Inc. (NASDAQ:CHEF) Given Average Recommendation of “Moderate Buy” by Brokerages

Nov -17

Source: defenseworld.net

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Chefs' Warehouse to Improve Fresh Food Availability and Efficiency with RELEX

Nov -13

Source: businesswire.com

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Bet on 5 Top-Ranked Stocks With Rising P/E

Nov -05

Source: zacks.com

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Chefs’ Warehouse (NASDAQ:CHEF) Shares Gap Up on Strong Earnings

Oct -30

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.61%)

6. Segments

Center-of-the-Plate

Expected Growth: 6.5%

Center-of-the-Plate growth driven by increasing demand for premium protein, rising restaurant traffic, and expanding distribution channels. Additionally, The Chefs' Warehouse, Inc.'s focus on quality, food safety, and customer service contributes to its 6.5% growth, as chefs and restaurateurs seek reliable suppliers to meet consumer preferences for high-quality dining experiences.

Dry Goods

Expected Growth: 6.8%

The 6.8% growth in Dry Goods from The Chefs' Warehouse, Inc. is driven by increasing demand from upscale restaurants and specialty food stores, expansion into new markets, and strategic acquisitions. Additionally, the company's focus on providing high-quality products, excellent customer service, and efficient logistics management have contributed to its growth.

Produce

Expected Growth: 6.2%

The Chefs' Warehouse, Inc.'s 6.2% growth is driven by increasing demand for specialty food products, expansion of its distribution network, and strategic acquisitions. Additionally, the company's focus on providing high-quality products and exceptional customer service has led to strong customer retention and loyalty, contributing to its growth.

Pastry

Expected Growth: 6.9%

The 6.9% growth of Pastry from The Chefs' Warehouse, Inc. is driven by increasing demand for premium and artisanal baked goods, expansion into new distribution channels, and strategic partnerships with high-end restaurants and hotels. Additionally, the company's focus on innovative products and flavors, as well as its commitment to quality and customer service, contribute to its growth momentum.

Cheeses and Charcuterie

Expected Growth: 7.1%

The 7.1% growth of Cheeses and Charcuterie from The Chefs' Warehouse, Inc. is driven by increasing demand for gourmet and artisanal products, expansion of upscale restaurants and specialty food stores, and growing consumer interest in unique and exotic flavors. Additionally, the company's strategic partnerships with high-end chefs and restaurants, as well as its efficient supply chain management, contribute to its growth.

Dairy and Eggs

Expected Growth: 6.6%

The 6.6% growth in Dairy and Eggs from The Chefs' Warehouse, Inc. is driven by increasing demand for premium and artisanal products, expansion of online channels, and strategic partnerships with high-end restaurants and foodservice providers. Additionally, the company's focus on sourcing high-quality products and investing in logistics and distribution infrastructure has enabled it to capitalize on the growing trend of consumers seeking premium dairy and egg products.

Oils and Vinegars

Expected Growth: 6.7%

The 6.7% growth in Oils and Vinegars from The Chefs' Warehouse, Inc. is driven by increasing demand for premium and artisanal products, expansion of online channels, and rising popularity of plant-based and healthy eating trends. Additionally, strategic partnerships with high-end restaurants and foodservice providers contribute to the segment's growth.

Kitchen Supplies

Expected Growth: 6.3%

The 6.3% growth in Kitchen Supplies from The Chefs' Warehouse, Inc. is driven by increasing demand from restaurants and foodservice establishments, expansion into new markets, and a growing trend towards gourmet and specialty foods. Additionally, the company's strategic acquisitions and investments in e-commerce capabilities have enhanced its product offerings and improved customer convenience.

7. Detailed Products

Specialty Proteins

The Chefs' Warehouse, Inc. offers a wide range of specialty proteins including organic, grass-fed, and dry-aged beef, as well as exotic meats and game.

Artisanal and Farmstead Cheeses

The company sources artisanal and farmstead cheeses from around the world, offering a diverse selection of soft, hard, blue, and goat cheeses.

Dry Goods and Pantry

The Chefs' Warehouse, Inc. offers a comprehensive range of dry goods and pantry staples, including artisanal oils, spices, and specialty ingredients.

Bakery and Pastry

The company provides a variety of bakery and pastry products, including artisanal breads, pastries, and desserts.

Produce and Fresh Fruits and Vegetables

The Chefs' Warehouse, Inc. sources fresh produce and fruits from local farms and around the world, offering a diverse selection of seasonal and exotic options.

Dairy and Eggs

The company offers a range of dairy products, including artisanal yogurts, cheeses, and eggs from local farms and around the world.

Meat Alternatives and Plant-Based Products

The Chefs' Warehouse, Inc. offers a variety of meat alternatives and plant-based products, including vegan and gluten-free options.

8. The Chefs' Warehouse, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for The Chefs' Warehouse, Inc. is medium due to the availability of alternative products and services in the market. While the company's specialty food products are unique, customers may still opt for substitutes or alternative channels to purchase similar products.

Bargaining Power Of Customers

The bargaining power of customers for The Chefs' Warehouse, Inc. is low due to the company's strong relationships with its customers and the lack of concentration in the market. Customers have limited bargaining power, and the company has a diversified customer base.

Bargaining Power Of Suppliers

The bargaining power of suppliers for The Chefs' Warehouse, Inc. is medium due to the company's dependence on a few large suppliers. While the company has some bargaining power, suppliers also have some leverage due to the specialized nature of the products.

Threat Of New Entrants

The threat of new entrants for The Chefs' Warehouse, Inc. is low due to the high barriers to entry in the specialty food distribution industry. New entrants would need significant capital and expertise to compete with established players like The Chefs' Warehouse, Inc.

Intensity Of Rivalry

The intensity of rivalry for The Chefs' Warehouse, Inc. is high due to the competitive nature of the specialty food distribution industry. The company faces intense competition from established players, and the market is highly fragmented.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 61.48%
Debt Cost 7.87%
Equity Weight 38.52%
Equity Cost 15.07%
WACC 10.64%
Leverage 159.62%

11. Quality Control: The Chefs' Warehouse, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
SpartanNash

A-Score: 5.3/10

Value: 7.3

Growth: 3.3

Quality: 2.1

Yield: 7.0

Momentum: 8.5

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Chefs Warehouse

A-Score: 5.2/10

Value: 3.9

Growth: 8.7

Quality: 5.2

Yield: 0.0

Momentum: 8.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
AMCON

A-Score: 4.6/10

Value: 7.5

Growth: 6.7

Quality: 3.6

Yield: 4.0

Momentum: 2.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
UNFI

A-Score: 4.4/10

Value: 7.0

Growth: 4.6

Quality: 1.9

Yield: 0.0

Momentum: 10.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Mission Produce

A-Score: 4.2/10

Value: 5.1

Growth: 4.7

Quality: 4.3

Yield: 0.0

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

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Stock-Card
HF Foods Group

A-Score: 3.3/10

Value: 9.5

Growth: 3.2

Quality: 3.1

Yield: 0.0

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

60.39$

Current Price

60.39$

Potential

-0.00%

Expected Cash-Flows