Overview

• Specialty food distributor's Q4 net sales rose 10.5%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Operating income decreased due to higher operating expenses, including impairment charge

Outlook

• Chefs' Warehouse projects fiscal 2026 net sales between $4.35 bln and $4.45 bln

• Company expects fiscal 2026 gross profit between $1.053 bln and $1.076 bln

• Chefs' Warehouse anticipates fiscal 2026 adjusted EBITDA between $276 mln and $286 mln

Result Drivers

• STRONG DEMAND - Business activity and demand remained consistently strong through Q4, particularly from upscale-casual to higher-end dining customers, per CEO Christopher Pappas

• ORGANIC GROWTH - Organic sales increased 9.7% year-over-year, driven by volume growth and new customer acquisition

• CATEGORY IMPACT - Exit from non-core commodity poultry program led to a 2.4% decrease in organic pounds sold in the center-of-the-plate category

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the food retail & distribution peer group is "buy"

• Wall Street's median 12-month price target for Chefs' Warehouse Inc is $76.00, about 16.3% above its February 10 closing price of $65.36

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 28 three months ago

Press Release: ID:nGNX29ccn6

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)