The Chefs' Warehouse Inc Stock Surges 6.01% Amid Bullish Analyst Forecasts and Strong Trading Volume

Friday, Jul 11, 2025 10:27 pm ET1min read

Shares of The Chefs' Warehouse Inc (CHEF) surged 6.01% to $67.78 on Jul 7, with an intraday high of $68.07. The average target price is $71.38, indicating an upside of 5.30% from the current price. Analysts forecast an average target price of $71.38 with a high estimate of $75.00 and a low estimate of $68.00.

Shares of The Chefs' Warehouse Inc (CHEF) surged 6.01% to $67.78 on July 7, 2025, reaching an intraday high of $68.07. The average target price of $71.38 indicates an upside of 5.30% from the current price. Analysts forecast an average target price of $71.38, with a high estimate of $75.00 and a low estimate of $68.00 [1].

The stock's performance can be attributed to the company's strong financial results and promising growth prospects. In the first quarter of its 2025 fiscal year, The Chefs' Warehouse reported revenue of $950.7 million, an 8.7% increase year-over-year. This growth was driven by a 5.7% increase in case count and a 4.5% rise in unique customers in its specialty category [1].

On the bottom line, the company's net profits improved from $1.9 million to $10.3 million, with adjusted net profits nearly doubling to $11.4 million. Operating cash flow also grew from $30.9 million to $49.6 million, and EBITDA expanded from $40.2 million to $47.5 million [1].

Management expects sales to reach between $3.96 billion and $4.04 billion in 2025, with EBITDA projected to be between $234 million and $246 million. If these targets are met, adjusted net profits could reach $73.9 million and adjusted operating cash flow could hit $169.3 million [1].

The Chefs' Warehouse has also been focusing on long-term growth initiatives, aiming to achieve EBITDA of between $300 million and $350 million by 2028. These initiatives include organic sales growth, acquisitions, operational improvements, and digital innovation [1].

The company's online ordering platform has seen significant growth, with the percentage of unique customers ordering online increasing from 20% in 2019 to 58% as of the first quarter of 2025 [1].

Despite the stock's recent surge, analysts maintain a positive outlook. The average target price of $71.38 suggests that there is still potential for further upside. However, the stock's relative valuation compared to peers indicates that it may be slightly overvalued [1].

References:
[1] https://seekingalpha.com/article/4800062-chefs-warehouse-still-appetizing

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