Core Insights - The article emphasizes the importance of identifying the right entry point for fast-moving stocks, highlighting the risks of investing in overvalued shares with limited upside potential [1] - Chefs' Warehouse (CHEF) is presented as a strong candidate for investment, having shown a price increase of 6.4% over the past 12 weeks, indicating its potential for sustained momentum [2][3] - CHEF is trading at a low Price-to-Sales ratio of 0.43, suggesting it is attractively valued relative to its sales [4] - The stock has a Momentum Score of B, indicating a favorable time to invest [3] - CHEF's beta of 2.3 indicates high volatility, moving 130% more than the market in either direction, which reflects its fast-paced momentum [10] - The stock has received a Zacks Rank 2 (Buy) due to positive earnings estimate revisions, suggesting strong investor interest and potential for further price increases [11] Investment Strategy - Momentum investors focus on "buying high and selling higher," rather than waiting for cheap stocks to recover, which aligns with the strategy of investing in CHEF [7] - The Zacks Momentum Style Score and the 'Fast-Paced Momentum at a Bargain' screen are useful tools for identifying stocks like CHEF that exhibit recent price momentum while remaining attractively priced [8] - The article suggests that there are other stocks that also meet the criteria for fast-paced momentum at a bargain, encouraging investors to explore these options [5]

FilippoBacci Synopsis The Chefs' Warehouse, Inc. (NASDAQ:CHEF) is a major distributor of specialty food and centre-of-plate products in North America and the Middle East. With strong distribution networks and a large customer base, they serve food products of the highest grade and quality. CHEF has shown strong revenue growth throughout the years, with most of the sales coming from its recent strategic acquisitions. Although CHEF operates in an industry with high volume but a relatively lower profit mar ...

This quarter's earnings update contained some good news for investors.Chefs' Warehouse (CHEF 5.56%) stock was strong on Wednesday as shares jumped 6% by early afternoon trading. That's compared to a modest decline in the S&P 500. The rally added to a great run for the specialty foods distributor's stock. Shares are up 19% so far in 2024, beating the wider market's 5% uptick.Wednesday's gains were sparked by management's first-quarter update, which was stuffed with good news about the business's operating tr ...

Financial Data and Key Metrics Changes - Net sales for Q1 2024 increased approximately 21.5% to $874.5 million from $719.6 million in Q1 2023, driven by an 8.8% increase in organic sales and a 12.7% contribution from acquisitions [6][10] - Gross profit increased 23.4% to $209.4 million, with gross profit margins rising approximately 37 basis points to 23.9% [67][63] - Adjusted EBITDA for Q1 2024 was $40.2 million compared to $32.8 million in Q1 2023, with adjusted net income at $5.9 million or $0.15 per diluted share [99] Business Line Data and Key Metrics Changes - Specialty sales grew 7% organically, with unique customer growth of approximately 10.1% and placement growth of 12% [93] - Center-of-the-plate organic pounds increased approximately 6.2% compared to the prior year [93] - Gross margin in the specialty category remained unchanged, while the center-of-the-plate category saw a 19 basis point increase [63] Market Data and Key Metrics Changes - Net inflation was reported at 2.7%, with 1.2% inflation in the specialty category and 4.6% in the center-of-the-plate category [97] - The company noted that the competitive landscape remains challenging, with some customers experiencing negative comps while others are gaining market share [129] Company Strategy and Development Direction - The company is focused on organic growth and enhancing its brand as a premier distributor of specialty ingredients and proteins [65] - Ongoing consolidation of operations in Northern California is expected to yield operational efficiencies starting in 2025 [64] - The company is investing in technology and training to improve operational efficiency and labor productivity [131][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about customer resilience amid economic pressures, noting that higher-end consumers may be less affected by inflation [76] - The company anticipates continued growth, with a full-year guidance for net sales between $3.64 billion and $3.785 billion [10] - Management acknowledged potential headwinds from macroeconomic factors but remains confident in the company's strategic investments [128] Other Important Information - The company repurchased $5 million of outstanding shares and reduced its term loan balance by $6.7 million [9] - The company expects to maintain a net debt to adjusted EBITDA ratio of approximately 3.3x [70] Q&A Session All Questions and Answers Question: How is the company navigating the competitive backdrop with respect to pricing? - Management noted that while some customers may be facing pressures, they are gaining new customers and maintaining a strong market position [17][18] Question: What is the outlook for the Middle East business amid regional turmoil? - The company indicated that the Middle East operations have remained largely immune to turmoil, with some sourcing adjustments made [80] Question: How sustainable is the current organic growth rate? - Management expects organic growth to moderate slightly but remains comfortable with guidance that aligns with long-term growth algorithms [126] Question: What are the expectations for inflation in the coming quarters? - Management indicated that inflation has firmed up more than expected, with labor costs expected to remain high [121][141]

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on May 1, 2024. THE CHEFS' WAREHOUSE, INC. (Registrant) Date: May 1, 2024 /s/ James Leddy James Leddy Chief Financial Officer (Principal Financial Officer) Date: May 1, 2024 /s/ Timothy McCauley Timothy McCauley Chief Accounting Officer (Principal Accounting Officer) 23 UNITED STATES SECURITIES AND EXCHA ...

The Chefs' Warehouse Reports First Quarter 2024 Financial Results Financial highlights for the first quarter of 2024: First Quarter Fiscal 2024 Results Selling, general and administrative expenses increased by approximately 21.9% to $190.3 million for the first quarter of 2024 from $156.1 million for the first quarter of 2023. The increase was primarily due to higher depreciation and amortization driven by acquisitions and facility investments, and higher costs associated with compensation and benefits, fac ...

Strength in the brand portfolio and impressive momentum in the global beauty market keeps Coty Inc. (COTY) well-positioned for growth. The beauty products provider is on track with its strategic pillar, which is yielding. The company undertakes strategic partnerships to grow its presence. That being said, COTY is not immune to a rising cost environment.Let’s delve deeper.Market Trends Drive GrowthThe beauty space continues to stand out and Coty is well-positioned to capitalize on this favorable market envir ...

Coty Inc. (COTY) is benefiting from the focus on its strategic pillars aimed at sustainable growth. The beauty products provider undertakes strategic partnerships to enhance its brand portfolio. Management is on track with cost-saving efforts to counter inflationary headwinds.Let’s delve deeper.Core Priorities Drive GrowthThe company is benefiting from its focus on six strategic pillars that are aimed at sustainable growth. These include stabilizing Consumer Beauty make-up brands and mass fragrances; accele ...

Three New Independent Directors Join the Board with Five Incumbent Directors Who Have Served for Five Years or Longer Stepping off by the 2025 Annual Meeting Operational and Financial Performance Task Force Will be Formed to Support Identifying Margin Improvement Opportunities RIDGEFIELD, Conn., March 04, 2024 (GLOBE NEWSWIRE) -- The Chefs' Warehouse, Inc. (the "Company") (NASDAQ:CHEF), a premier distributor of specialty food products in the United States, the Middle East and Canada, announced today that it ...

Accordingly, if we are unable to obtain the specialty food products, produce, meat, poultry or seafood that comprise a significant percentage of our product portfolio in a timely manner and in the quantities and at the prices we request as a result of any of the foregoing factors or otherwise, we may be unable to fulfill our obligations to customers who may, as a result of any such failure, resort to other distributors for their food product needs or change the types of products they buy from us to products ...