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

Shares of The Chefs’ Warehouse, Inc. (NASDAQ:CHEF) gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $33.08, but opened at $37.12. Chefs’ Warehouse shares last traded at $36.60, with a volume of 85,161 shares.

The company reported $0.15 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.07 by $0.08. The business had revenue of $874.50 million for the quarter, compared to analyst estimates of $833.25 million. Chefs’ Warehouse had a return on equity of 12.30% and a net margin of 1.01%. The firm’s revenue for the quarter was up 21.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.12 earnings per share.

Analyst Upgrades and Downgrades

A number of research firms recently commented on CHEF. UBS Group upped their price objective on Chefs’ Warehouse from $36.00 to $44.00 and gave the company a “buy” rating in a report on Thursday, February 15th. StockNews.com raised Chefs’ Warehouse from a “sell” rating to a “hold” rating in a research note on Thursday. Benchmark reissued a “buy” rating and set a $50.00 price objective on shares of Chefs’ Warehouse in a research note on Thursday. Finally, BMO Capital Markets upped their target price on shares of Chefs’ Warehouse from $35.00 to $50.00 and gave the company an “outperform” rating in a research note on Friday, February 16th.

Institutional Investors Weigh In On Chefs’ Warehouse

A number of hedge funds have recently modified their holdings of CHEF. Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in Chefs’ Warehouse by 32.5% during the 3rd quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 6,984 shares of the company’s stock worth $148,000 after buying an additional 1,713 shares during the period. Jennison Associates LLC increased its position in shares of Chefs’ Warehouse by 0.7% during the third quarter. Jennison Associates LLC now owns 1,399,498 shares of the company’s stock worth $29,641,000 after acquiring an additional 10,036 shares in the last quarter. Welch & Forbes LLC raised its holdings in shares of Chefs’ Warehouse by 386.6% during the third quarter. Welch & Forbes LLC now owns 61,775 shares of the company’s stock worth $1,308,000 after acquiring an additional 49,080 shares during the period. Mesirow Financial Investment Management Inc. bought a new stake in Chefs’ Warehouse in the 3rd quarter valued at $223,000. Finally, Victory Capital Management Inc. boosted its stake in Chefs’ Warehouse by 39.4% in the 3rd quarter. Victory Capital Management Inc. now owns 18,158 shares of the company’s stock worth $385,000 after purchasing an additional 5,133 shares during the period. Institutional investors and hedge funds own 91.55% of the company’s stock.

Chefs’ Warehouse Stock Performance

The stock’s 50 day moving average is $35.78 and its two-hundred day moving average is $30.69. The stock has a market capitalization of $1.47 billion, a price-to-earnings ratio of 42.95 and a beta of 2.22. The company has a current ratio of 1.89, a quick ratio of 1.16 and a debt-to-equity ratio of 1.46.

Chefs’ Warehouse Company Profile

The Chefs' Warehouse, Inc, together with its subsidiaries, distributes specialty food and center-of-the-plate products in the United States, the Middle East, and Canada. The company's product portfolio includes specialty food products, such as artisan charcuterie, specialty cheeses, unique oils and vinegars, truffles, caviar, chocolate, and pastry products; and center-of-the-plate products consisting of custom cut beef, seafood, and hormone-free poultry, as well as broadline food products comprising cooking oils, butter, eggs, milk, and flour.