# The Chefs Warehouse (CHEF.US)

Canonical: https://gigainvestors.com/s/CHEF

Analysis as of: 2026-10-16T07:27:24.297Z. Financial observations: FY2009–FY2025.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $114.27 per share; close as of 2026-10-15.

Estimated value: low $16.29 per share, central $22.18 per share, high $25.82 per share. Buy at or below the central value $22.18 per share. Valuation as of 2026-10-16T07:27:24.297Z; scenarios are not confidence intervals.

Expected annual return: 4.3% at the stated quote. About 4.3% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 1 revenue decline in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 2

- Operating margin variation: 2.06×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.04×

- FY2017: 0.03×

- FY2018: 0.03×

- FY2019: 0.03×

- FY2020: -0.09×

- FY2021: 0.01×

- FY2022: 0.03×

- FY2023: 0.03×

- FY2024: 0.03×

- FY2025: 0.04×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 7.7%

- ROIC, second-lowest year: 1.5%

- Typical minus recent gross margin: 0.1 pp

- Typical gross margin (annual median): 24.1%

- Recent gross margin (lower of latest and 3-year median): 24.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 1.3%

- ROIC including acquisitions, ten-year median: 3.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 9.3%

- FY2017: 9.1%

- FY2018: 9.9%

- FY2019: 7.3%

- FY2020: -17.4%

- FY2021: 1.5%

- FY2022: 7.1%

- FY2023: 6.7%

- FY2024: 9.1%

- FY2025: 8.2%

### economics: pass

- Owner earnings / net income, 5-yr: 1.28×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $237M

- Net income, five-year total: $185M

- Return on incremental invested capital: 27.8%

- Working capital / revenue, annual change: -0.1 pp

- Working capital / revenue, change between three-year averages: -1.0 pp

- Working capital / revenue, final three-year average: 12.0%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 1.00×

- FY2023: 1.00×

- FY2024: 1.28×

- FY2025: 1.51×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 9.3% vs 8.2%

- Per-share earnings: 0.52 to 1.21 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 5.7%

- Ordinary dilution, 5-year annual growth: 6.4%

- Market cap gain: $2.1B

- Cumulative retained earnings: $133M

- Diluted shares, 10-year annual growth: 5.7%

- Diluted shares, 5-year annual growth: 6.4%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 11.0%

- Per-share value change: $0.68

- Per-share value, starting three-year median: $0.52

- Per-share value, ending three-year median: $1.21

- Buybacks concentrated in cheaper years (correlation): 0.26

- Average buyback yield: 0.3%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $258M

- Cumulative net income, 10 years: $164M

- ROIC, first three-year median: 9.3%

- ROIC, last three-year median: 8.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.12

- FY2017: $0.52

- FY2018: $0.69

- FY2019: $0.80

- FY2020: -$2.46

- FY2021: -$0.13

- FY2022: $0.72

- FY2023: $0.76

- FY2024: $1.21

- FY2025: $1.57

### accounting: pass

- stock compensation exceeds 15% of operating cash flow

- Sloan accruals: -2.8%

- Receivables to sales index (DSRI): 1.05×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 16.4%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.79×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.83×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -5.7%

- FY2017: -2.5%

- FY2018: -3.4%

- FY2019: -2.1%

- FY2020: -12.9%

- FY2021: 1.4%

- FY2022: 0.3%

- FY2023: -1.6%

- FY2024: -5.3%

- FY2025: -2.8%

## Holders

- [Matthew McLennan](https://gigainvestors.com/FE): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 27.8% a year for ten years · sales +9.4%

Story as of 2026-10-16T09:58:30.009Z; price observation 2026-10-15.

Price needs cash profits to grow 27.8% a year for ten years

- 2025-07-30: Chefs' Warehouse raises 2025 sales guidance to $4B-$4.06B as Texas integration drives profitability ([seekingalpha.com](https://seekingalpha.com/news/4474643-chefs-warehouse-raises-2025-sales-guidance-to-4b-4_06b-as-texas-integration-drives?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2026-07-29: Chefs' Warehouse raises 2026 guidance to $4.5B-$4.6B sales and $305M-$315M adjusted EBITDA ([seekingalpha.com](https://seekingalpha.com/news/4620866-chefs-warehouse-raises-2026-guidance-to-4_5b-4_6b-sales-and-305m-315m-adjusted-ebitda?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

### Sales · FY2024–2025

sales +9.4%; source https://www.sec.gov/Archives/edgar/data/1517175/000151717526000005/chef-20251226.htm; observed 2026-02-24.

- FY2016: $1.2B 

- FY2017: $1.3B 

- FY2018: $1.4B 

- FY2019: $1.6B 

- FY2020: $1.1B 

- FY2021: $1.7B 

- FY2022: $2.6B 

- FY2023: $3.4B 

- FY2024: $3.8B 

- FY2025: $4.1B 

### Gross margin · FY2025

gross margin 24.2%; source https://www.sec.gov/Archives/edgar/data/1517175/000151717526000005/chef-20251226.htm; observed 2026-02-24.

- FY2016: 25.3% 

- FY2017: 25.3% 

- FY2018: 25.4% 

- FY2019: 25.5% 

- FY2020: 22.3% 

- FY2021: 22.4% 

- FY2022: 23.7% 

- FY2023: 23.7% 

- FY2024: 24.1% 

- FY2025: 24.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in food distribution; annual sales are USD 4.1 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1517175/000151717526000005/chef-20251226.htm (filed 2026-02-24); FY2025: revenue 4149537000; grossProfit 1004090000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CHEF.US: 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. It offers 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 that includes custom cut beef, seafood, and hormone-free poultry, as well as produce and broadline food products comprising cooking oils, butter, eggs, milk, and flour. The company serves menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolatiers, cruise lines, casinos, and specialty food stores. It markets its center-of-the-plate products directly to consumers through a mail and e-commerce platform. The Chefs' Warehouse, Inc. was founded in 1985 and is headquartered in Ridgefield, Connecticut.

### Why customers stay

Margins ranged from 23.7% to 24.2% during 2023–25; it earns 7.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: grossProfit / revenue = 23.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: grossProfit / revenue = 24.1%.

- Source: https://www.sec.gov/Archives/edgar/data/1517175/000151717526000005/chef-20251226.htm (filed 2026-02-24); FY2025: grossProfit / revenue = 24.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); 10-year return on capital observations [[2016,0.09314982677757755],[2017,0.09125631495562916],[2018,0.09917997668254064],[2019,0.07250225329017301],[2020,-0.17369293503867866],[2021,0.015367586728084064],[2022,0.07139373926128949],[2023,0.06729257261240565],[2024,0.09102414681892455],[2025,0.08249542508898842]]; median 0.07749883918958073. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 24% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1517175/000151717526000005/chef-20251226.htm (filed 2026-02-24); Gross margin observations: [[2021,0.22367660562151548],[2022,0.23671701106490053],[2023,0.23719575288102296]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 4 of 10 years; bought back USD 15 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2016: growth capex 0; upkeep 16623000; owner earnings 4915000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2017: growth capex 0; upkeep 12311000; owner earnings 22604000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2018: growth capex 0; upkeep 19817000; owner earnings 22791000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2019: growth capex 0; upkeep 16077000; owner earnings 34107000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2022: growth capex 7603000; upkeep 38245000; owner earnings 27750000. Growth capex / owner earnings = 0.273981981981982.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2023: growth capex 1821000; upkeep 55606000; owner earnings 34590000. Growth capex / owner earnings = 0.05264527320034692.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); FY2024: growth capex 0; upkeep 49506000; owner earnings 70907000. Growth capex / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/1517175/000151717526000005/chef-20251226.htm (filed 2026-02-24); FY2025: growth capex 0; upkeep 41426000; owner earnings 109065000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Dividend observations: [[2016,0],[2017,0],[2018,0],[2019,1541000],[2020,100000000],[2021,0],[2022,69000],[2023,2134000],[2024,0],[2025,0]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1517175/000151717526000005/chef-20251226.htm (filed 2026-02-24); FY2025: cash repurchases 15004000 USD.

### Are managers owners

Insiders own 10.1% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); CHEF.US SharesStats.PercentInsiders = 10.129000000000001 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 27.8% yearly over ten years; actual growth was 14.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-24); Ten-year compound average after fade. Initial solved rate 0.39407536569095536. Price 114.27; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.6114528525676983 → FY2025 2.3709104322145915. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $11.40 per share

- 2016-11: $12.95 per share

- 2016-12: $15.80 per share

- 2017-01: $16.70 per share

- 2017-02: $14.00 per share

- 2017-03: $13.90 per share

- 2017-04: $13.65 per share

- 2017-05: $15.15 per share

- 2017-06: $13.00 per share

- 2017-07: $14.50 per share

- 2017-08: $17.25 per share

- 2017-09: $19.30 per share

- 2017-10: $19.95 per share

- 2017-11: $20.25 per share

- 2017-12: $20.50 per share

- 2018-01: $20.35 per share

- 2018-02: $22.55 per share

- 2018-03: $23.00 per share

- 2018-04: $24.25 per share

- 2018-05: $27.20 per share

- 2018-06: $28.50 per share

- 2018-07: $26.95 per share

- 2018-08: $29.40 per share

- 2018-09: $36.35 per share

- 2018-10: $33.63 per share

- 2018-11: $38.11 per share

- 2018-12: $31.98 per share

- 2019-01: $32.12 per share

- 2019-02: $32.01 per share

- 2019-03: $31.05 per share

- 2019-04: $32.68 per share

- 2019-05: $31.67 per share

- 2019-06: $35.07 per share

- 2019-07: $36.47 per share

- 2019-08: $38.58 per share

- 2019-09: $40.32 per share

- 2019-10: $33.13 per share

- 2019-11: $35.56 per share

- 2019-12: $38.11 per share

- 2020-01: $36.40 per share

- 2020-02: $30.62 per share

- 2020-03: $10.07 per share

- 2020-04: $14.08 per share

- 2020-05: $14.80 per share

- 2020-06: $13.58 per share

- 2020-07: $11.53 per share

- 2020-08: $14.81 per share

- 2020-09: $14.54 per share

- 2020-10: $13.52 per share

- 2020-11: $23.05 per share

- 2020-12: $25.69 per share

- 2021-01: $27.29 per share

- 2021-02: $31.14 per share

- 2021-03: $30.46 per share

- 2021-04: $32.23 per share

- 2021-05: $30.76 per share

- 2021-06: $31.83 per share

- 2021-07: $28.92 per share

- 2021-08: $30.23 per share

- 2021-09: $32.57 per share

- 2021-10: $34.87 per share

- 2021-11: $31.07 per share

- 2021-12: $33.30 per share

- 2022-01: $29.84 per share

- 2022-02: $32.85 per share

- 2022-03: $32.60 per share

- 2022-04: $36.60 per share

- 2022-05: $35.73 per share

- 2022-06: $38.89 per share

- 2022-07: $34.61 per share

- 2022-08: $33.34 per share

- 2022-09: $28.97 per share

- 2022-10: $36.63 per share

- 2022-11: $38.85 per share

- 2022-12: $33.28 per share

- 2023-01: $38.23 per share

- 2023-02: $32.55 per share

- 2023-03: $34.05 per share

- 2023-04: $33.26 per share

- 2023-05: $31.11 per share

- 2023-06: $35.76 per share

- 2023-07: $36.34 per share

- 2023-08: $28.54 per share

- 2023-09: $21.18 per share

- 2023-10: $19.03 per share

- 2023-11: $26.90 per share

- 2023-12: $29.43 per share

- 2024-01: $31.82 per share

- 2024-02: $38.01 per share

- 2024-03: $37.66 per share

- 2024-04: $33.08 per share

- 2024-05: $39.42 per share

- 2024-06: $39.11 per share

- 2024-07: $41.59 per share

- 2024-08: $42.83 per share

- 2024-09: $42.01 per share

- 2024-10: $39.92 per share

- 2024-11: $44.71 per share

- 2024-12: $49.32 per share

- 2025-01: $53.86 per share

- 2025-02: $62.58 per share

- 2025-03: $54.46 per share

- 2025-04: $56.97 per share

- 2025-05: $63.78 per share

- 2025-06: $63.81 per share

- 2025-07: $68.56 per share

- 2025-08: $63.14 per share

- 2025-09: $58.33 per share

- 2025-10: $59.00 per share

- 2025-11: $61.32 per share

- 2025-12: $62.33 per share

- 2026-01: $62.90 per share

- 2026-02: $71.39 per share

- 2026-03: $59.45 per share

- 2026-04: $77.60 per share

- 2026-05: $76.54 per share

- 2026-06: $96.10 per share

- 2026-07: $115.35 per share

- 2026-08: $112.47 per share

- 2026-09: $112.17 per share

- 2026-10: $114.27 per share

## Annual estimated value (USD per share)

- FY2016: low $8.01 per share, central $9.07 per share, high $10.48 per share

- FY2017: low $8.50 per share, central $9.60 per share, high $11.06 per share

- FY2018: low $8.60 per share, central $9.72 per share, high $11.22 per share

- FY2019: low $14.96 per share, central $19.82 per share, high $22.66 per share

- FY2020: low $10.76 per share, central $11.54 per share, high $12.59 per share

- FY2021: low $10.38 per share, central $11.51 per share, high $13.01 per share

- FY2022: low $10.58 per share, central $11.66 per share, high $13.10 per share

- FY2023: low $8.28 per share, central $9.43 per share, high $10.95 per share

- FY2024: low $11.78 per share, central $15.96 per share, high $18.57 per share

- FY2025: low $13.50 per share, central $18.43 per share, high $21.48 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1517175/000151717526000005/chef-20251226.htm); period 2025-12-26, filed 2026-02-24.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.