The Chefs' Warehouse Inc. Common Stock (CHEF)

FairStock Score: 30/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Graham-minded investor, I start with what is proven. The Chefs' Warehouse distributes specialty foods and center-of-the-plate products, and the filed record shows real growth: FY2025 revenue was $4.1 billion, net income $72.4 million and diluted EPS $1.68, versus FY2024 revenue $3.8 billion, net income $55.5 million and EPS $1.32, and FY2023 revenue $3.4 billion, net income $34.6 million and EPS $0.88. In fiscal Q1 2026, revenue was $1.1 billion and net income $17.4 million, or EPS $0.40. That is a fast-growing record. FairStock's Lynch label is FAST GROWER, based on 37.6% profit growth and 16.7% revenue growth over three years. But quality is not just growth. The business runs on thin margins — latest quarter net margin 2.89% — and FairStock's ROCE is only 5.87%, while debt-to-equity is 1.46. A Piotroski F-score of 7/9 and Altman Z-score of 3.03 suggest the balance sheet is not distressed, and trailing free cash flow of $125.8 million is positive. Still, I see no clear durable moat in these numbers; specialty food distribution is competitive and capital needs are real. Valuation is the stumbling block. At the 2026-10-26 close of $106.33, FairStock calculates P/E 50.39, P/B 6.69, EV/EBITDA 20.04, FCF yield 2.9%, and a Graham Number of $27.47 — a margin of safety of negative 285.44%. PEG of 0.85 is attractive for the growth, but Graham would demand a larger discount. Growth is excellent; the price already assumes much of it.

In plain English: The Chefs' Warehouse sells specialty foods such as cheeses, meats, seafood, oils and other products to restaurants and food buyers. The business has been growing sales and profits, but it earns thin margins and carries meaningful debt. At $106.33 on 2026-10-26, the stock looks expensive relative to its earnings and accounting value, so the numbers do not suggest a bargain.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q1 2026 10-Q (period ended 2026-03-27) · fiscal Q3 2025 10-Q (period ended 2025-09-26) · fiscal Q2 2025 10-Q (period ended 2025-06-27) · fiscal Q1 2025 10-Q (period ended 2025-03-28) · FY2025 10-K (period ended 2025-12-26) · FY2024 10-K (period ended 2024-12-27) · FY2023 10-K (period ended 2023-12-29)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer