Chefs' Warehouse, Inc. (CHEF)

Price$110.85Cached quoteAs of 2026-09-19 06:53 UTC

AI: Overvalued

Price checkThe shares look expensive because today’s price assumes years of strong profit growth continue.

Using trailing diluted earnings of about $2.10 per share, the stock trades near 54 times earnings. Free cash flow—cash left after running the business and capital spending—was roughly $126 million over the latest twelve months, implying a market-value multiple near 37 times. Management’s 2030 goals suggest about $180 million-$312 million of free cash flow if its own conversion target is met. Even then, today’s market value is roughly 15-26 times that future cash, leaving little margin for disappointment.

Big pictureSales and profits are compounding quickly, but cash generation still moves with inventory and customer payments.

Revenue rose from $1.11 billion in 2020 to $4.15 billion in 2025, while operating income moved from a $103 million loss to a $145 million profit. Yet operating cash flow slipped from $153 million in 2024 to $129 million in 2025 despite higher earnings, showing inventory and customer payments can move cash between periods. Second-quarter 2026 sales grew 12.9% and operating margin rose to 5.1% from 3.9%. The main cycle risk is restaurant and hospitality demand; Middle East sales were about 94% of prior-year levels in May and June.

Business strengthThe business is improving, but heavy debt and modest share dilution reduce the safety cushion.

Liquidity is adequate, but leverage is the weak point. The supplied history shows 2025 total debt of about $1.06 billion against $121 million of cash; by first-quarter 2026, debt was still about $978 million against $123 million of cash. Current assets were more than twice current liabilities, so near-term bills are not the main concern. Shares outstanding rose about 9% from 2020 to 2025 despite buybacks, while 2025 stock compensation exceeded repurchases. Growth therefore must outpace financing costs and dilution to create per-share value.

What could change the storySustained margin gains could justify more value, while slower growth would expose the premium quickly.

Management now targets 2030 revenue of $6.0-$6.5 billion and adjusted earnings before interest, taxes, depreciation and amortization of $450-$520 million, a rough operating cash proxy, versus about $294 million trailing today. That requires 7%-10% annual revenue growth and margin expansion to 7.5%-8.0%. If those targets are met and debt falls toward management’s 1.5-2.5 times leverage goal, the premium becomes easier to defend. If organic growth slips to mid-single digits or margins stall near 6.7%, the current valuation leaves little downside protection.

AI: News

Second-quarter earnings beatSecond-quarter results beat expectations and raised the full-year forecast, strengthening the case for faster growth and better margins.

On July 29, sales rose 12.9% to $1.17 billion, adjusted earnings per share were $0.78 versus $0.58 expected, and adjusted operating profit before interest, taxes, depreciation and amortization reached $88.1 million. The company forecast $4.50-$4.60 billion of 2026 sales and $305-$315 million on that adjusted profit measure. Shares were reported up 7.3% premarket after the release; that timing is consistent with a positive earnings reaction, though it does not prove the results were the only cause.

Higher 2030 targetsManagement lifted its long-term growth goals, giving investors a stronger bull case but raising execution expectations.

Also on July 29, management set 2030 revenue goals at $6.0-$6.5 billion, with adjusted earnings before interest, taxes, depreciation and amortization of $450-$520 million and a 7.5%-8.0% margin. It expects 7%-10% annual revenue growth, primarily organic, and free cash flow equal to roughly 40%-60% of that adjusted profit measure. Those targets help explain the richer valuation, but they are forecasts rather than commitments and require several years of continued share gains and operating efficiency.

Debt refinancing and note callThe company is reshaping its debt, which could improve financing flexibility but still leaves meaningful leverage.

On August 4, Chefs’ Warehouse began marketing a $625 million term loan; by August 12, the proposed facility had been upsized to $675 million. It also called all $287.5 million of 2.375% convertible notes for October redemption. Holders can convert before redemption, with cash paid up to a stated threshold and shares used for any excess conversion value. The refinancing may simplify maturities, but it does not eliminate the underlying debt burden and could create some dilution.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$4.15B	$3.79B	$3.43B	$2.61B	$1.75B	$1.11B	$1.59B	$1.44B	$1.30B	$1.19B	$1.05B	$832.7M	$673.5M	$480.3M	$400.6M	$330.1M	$271.1M
Gross profit	$1.00B	$914.1M	$814.5M	$618.6M	$390.5M	$248.2M	$386.6M	$348.9M	$329.4M	$301.2M	$268.7M	$205.2M	$172.4M	$125.0M	$105.9M	$85.8M	$71.3M
Gross margin	24.20%	24.09%	23.72%	23.67%	22.37%	22.32%	24.28%	24.15%	25.31%	25.25%	25.67%	24.64%	25.59%	26.03%	26.44%	25.98%	26.31%
Operating expenses	$859.0M	$785.9M	$713.5M	$532.9M	$379.7M	$350.8M	$0	$318.3M	$288.3M	$254.0M	$228.3M	$172.1M	$135.8M	$96.2M	$78.1M	$64.2M	$58.0M
Operating income	$145.1M	$128.2M	$100.9M	$85.7M	$10.8M	−$102.7M	$50.7M	$48.6M	$41.1M	$47.2M	$40.4M	$33.0M	$36.6M	$28.8M	$27.8M	$21.6M	$13.3M
Operating margin	3.50%	3.38%	2.94%	3.28%	0.62%	−9.24%	3.18%	3.36%	3.16%	3.96%	3.86%	3.96%	5.43%	5.99%	6.94%	6.53%	4.92%
EBITDA	$198.8M	$168.8M	$133.8M	$110.1M	$32.8M	−$82.9M	$64.0M	$58.9M	$49.6M	$54.3M	$46.4M	$36.1M	$38.6M	$32.7M	$29.5M	$23.0M	$14.9M
EBITDA margin	4.79%	4.45%	3.90%	4.21%	1.88%	−7.46%	4.02%	4.08%	3.81%	4.55%	4.43%	4.34%	5.73%	6.81%	7.37%	6.96%	5.48%
Net income	$72.4M	$55.5M	$34.6M	$27.8M	−$4.9M	−$82.9M	$24.2M	$20.4M	$14.4M	$3.0M	$16.2M	$14.2M	$17.0M	$14.5M	$7.7M	$15.9M	$9.0M
Net profit margin	1.74%	1.46%	1.01%	1.06%	−0.28%	−7.46%	1.52%	1.41%	1.10%	0.25%	1.55%	1.71%	2.52%	3.02%	1.92%	4.81%	3.31%
Basic EPSper basic share	$1.87	$1.46	$0.92	$0.75	-$0.13	-$2.46	$0.82	$0.71	$0.55	$0.12	$0.63	$0.58	$0.78	$0.70	$0.44	-$0.50	$0.12
Diluted EPSper diluted share	$1.68	$1.32	$0.88	$0.73	-$0.13	-$2.46	$0.81	$0.70	$0.54	$0.12	$0.63	$0.57	$0.77	$0.69	$0.43	-$0.50	$0.11

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈14.81%of listed shares

BlackRock, Inc.6.04M shares · Jun 30, 2026

View holders

Top 20 reported holders of CHEF
Holder	% owned
BlackRock, Inc.	≈14.81%6.04M shares
WELLINGTON MANAGEMENT GROUP LLP	≈5.86%2.39M shares
Pappas Christopher	≈5.47%2.23M shares
VANGUARD CAPITAL MANAGEMENT LLC	≈3.98%1.62M shares
JPMORGAN CHASE & CO	≈3.82%1.56M shares
STATE STREET CORP	≈3.70%1.51M shares
VICTORY CAPITAL MANAGEMENT INC	≈3.32%1.35M shares
Pappas John	≈2.87%1.17M shares
ALLIANCEBERNSTEIN L.P.	≈2.64%1.08M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	≈2.45%1M shares
DIMENSIONAL FUND ADVISORS LP	≈2.43%992.74K shares
GEODE CAPITAL MANAGEMENT, LLC	≈2.36%963.67K shares
FMR LLC	≈2.32%948.05K shares
MASSACHUSETTS FINANCIAL SERVICES CO /MA/	≈2.31%943.15K shares
NOMURA ASSET MANAGEMENT INTERNATIONAL INC.	≈2.20%898.63K shares
Invesco Ltd.	≈2.00%815.55K shares
Select Equity Group, L.P.	≈1.88%765.44K shares
D. E. Shaw & Co., Inc.	≈1.63%664.49K shares
KENNEDY CAPITAL MANAGEMENT LLC	≈1.60%652.04K shares
JENNISON ASSOCIATES LLC	≈1.41%577.05K shares

Percentages use 40.78M shares of this listed class outstanding on Jun 26, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)22$41.33M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 19, 2026Form 4	Polychroni ChristinaChief Human Resources Officer	SellCommon Stock	4.5K	$79.21	$356.4K	24.6K
May 5, 2026Form 4	Pappas ChristopherPresident and CEO	SellCommon Stock	125.0K	$78.00	$9.75M	2.19M
Mar 3, 2026Form 4	Pappas ChristopherPresident and CEO	SellCommon Stock	95.9K	$62.53	$6.00M	2.40M
Mar 2, 2026Form 4	Polychroni ChristinaChief Human Resources Officer	SellCommon Stock	3.3K	$65.45	$217.1K	30.1K
Feb 27, 2026Form 4	Polychroni ChristinaChief Human Resources Officer	SellCommon Stock	3.1K	$71.33	$220.0K	33.9K

Review ownership filings at SEC.gov ↗

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Chefs' Warehouse, Inc. (CHEF)

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