Chefs’ Warehouse (NASDAQ:CHEF) Issues Earnings Results, Beats Estimates By $0.06 EPS

Chefs’ Warehouse (NASDAQ:CHEF) posted its quarterly earnings results on Wednesday. The company reported $0.68 EPS for the quarter, beating the consensus estimate of $0.62 by $0.06, FiscalAI reports. The company had revenue of $1.14 billion for the quarter, compared to analyst estimates of $1.10 billion. Chefs’ Warehouse had a net margin of 1.74% and a return on equity of 14.75%. The firm’s revenue was up 10.5% on a year-over-year basis. During the same period in the prior year, the company earned $0.55 earnings per share.

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

• Strong results and 2026 guidance: Q4 net sales were $1.143B (up ~10.5%) with Q4 adjusted EBITDA of $80.3M and full‑year 2025 revenue topping $4B; 2026 guidance calls for $4.35B–$4.45B of net sales and $276M–$286M of adjusted EBITDA.
• Operational leverage improving: Trailing‑12 month gross profit dollars per route rose ~6.2% and adjusted EBITDA per employee rose ~13% versus FY2024, with adjusted OpEx as a % of gross profit improving ~176 bps, driven by facility consolidations, technology and sales execution.
• Stronger liquidity and flexible capital allocation: Total liquidity of $280.5M, net debt ~ $529.5M with net debt/adjusted EBITDA ~2.1x, a repriced term loan (spread reduced to 2.5% over SOFR), and an opportunistic approach to buybacks and M&A.
• Inflation and mix dynamics: Reported Q4 net inflation was 8.3% (specialty 3.4%, center‑of‑plate 16.1%), though company‑adjusted inflation is ~4.3% after excluding certain attrition and cross‑sell effects; overall gross margin declined ~8 bps with specialty margins up and center‑of‑plate margins down.
• One‑time impairment pressured GAAP results: Other operating expenses rose by ~$10.5M in Q4, including an ~$8M impairment on a non‑core customer relationship/tangible asset, which weighed on GAAP operating income and net income.

Chefs’ Warehouse Stock Up 5.7%

Chefs’ Warehouse stock opened at $67.80 on Friday. The company has a debt-to-equity ratio of 1.19, a current ratio of 2.05 and a quick ratio of 1.19. The stock has a market capitalization of $2.76 billion, a PE ratio of 41.09 and a beta of 1.30. The business has a 50 day simple moving average of $63.12 and a 200-day simple moving average of $61.97. Chefs’ Warehouse has a 12 month low of $45.00 and a 12 month high of $69.47.

Institutional Investors Weigh In On Chefs’ Warehouse

Several institutional investors and hedge funds have recently added to or reduced their stakes in CHEF. Jain Global LLC acquired a new stake in shares of Chefs’ Warehouse in the third quarter worth approximately $304,000. Tower Research Capital LLC TRC raised its stake in Chefs’ Warehouse by 478.6% in the 2nd quarter. Tower Research Capital LLC TRC now owns 4,351 shares of the company’s stock valued at $278,000 after purchasing an additional 3,599 shares during the last quarter. Tidal Investments LLC lifted its holdings in Chefs’ Warehouse by 4.9% in the 2nd quarter. Tidal Investments LLC now owns 4,341 shares of the company’s stock valued at $277,000 after purchasing an additional 204 shares in the last quarter. Marshall Wace LLP acquired a new stake in Chefs’ Warehouse during the 2nd quarter worth $243,000. Finally, Entropy Technologies LP acquired a new stake in Chefs’ Warehouse during the 3rd quarter worth $228,000. Hedge funds and other institutional investors own 91.55% of the company’s stock.

Analyst Upgrades and Downgrades

Several equities analysts have recently issued reports on CHEF shares. Benchmark reissued a “buy” rating on shares of Chefs’ Warehouse in a report on Thursday. Zacks Research downgraded Chefs’ Warehouse from a “hold” rating to a “strong sell” rating in a report on Thursday, January 15th. UBS Group raised their price objective on shares of Chefs’ Warehouse from $80.00 to $83.00 and gave the stock a “buy” rating in a research note on Wednesday, January 14th. Wolfe Research set a $84.00 target price on shares of Chefs’ Warehouse in a report on Thursday. Finally, Morgan Stanley assumed coverage on shares of Chefs’ Warehouse in a report on Monday, October 27th. They set an “overweight” rating and a $75.00 price target on the stock. Four equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $77.67.

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.