Update shared on 26 Nov 2025
Fair value Decreased 0.33%Analysts have slightly reduced their price target for Chefs' Warehouse from $76.63 to $76.38. This update comes as a result of modestly softer profit margins and revenue growth expectations after recent coverage updates.
Analyst Commentary
Recent coverage reflects a balanced perspective on Chefs' Warehouse, highlighting several factors influencing its outlook and valuation.
Bullish Takeaways- Bullish analysts see Chefs' Warehouse as well-positioned in the premium segment of the food away from home market. This segment is considered less vulnerable to economic downturns.
- The company's specialization as a leading distributor in a niche market segment is viewed as a key competitive advantage that supports potential growth.
- Growth opportunities are tied to the company’s ability to serve high-end clients, which may contribute to margin stability and eventual expansion.
- Despite a slightly reduced price target, long-term prospects are supported by the company’s scale and attractive end markets.
- Bearish analysts express caution around modestly softer profit margins and revenue growth expectations. These factors could put pressure on near-term valuation.
- Execution risks remain, with potential challenges in maintaining growth momentum amid evolving market dynamics.
- There is concern that increased competition in the specialty distribution space could affect margins and net income.
- Some believe high-end market positioning, while a strength, may also expose the company more directly to shifts in discretionary spending habits.
What's in the News
- From June 28, 2025 to September 26, 2025, Chefs' Warehouse repurchased 81,216 shares, representing 0.2 percent, for $5.01 million. The company has now completed the repurchase of 667,413 shares, representing 1.67 percent, for $32.43 million under the buyback announced on November 1, 2023 (Key Developments).
- The Chefs' Warehouse, Inc. raised its earnings guidance for the full fiscal year 2025, with expected net sales in the range of $4.085 billion to $4.115 billion and net income between $75.5 million and $77.5 million (Key Developments).
Valuation Changes
- Consensus Analyst Price Target has decreased slightly, moving from $76.63 to $76.38.
- Discount Rate has risen modestly, increasing from 7.33 percent to 7.52 percent.
- Revenue Growth expectations have edged down, shifting from 7.63 percent to 7.11 percent.
- Net Profit Margin projections have declined modestly, falling from 2.47 percent to 2.33 percent.
- Future P/E Ratio estimates have decreased slightly, moving from 34.21x to 33.63x.
Disclaimer
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