Stock on Focus: The Chefs’ Warehouse, Inc. (CHEF)

Company Profile:

The Chefs’ Warehouse, Inc. is a distributor of specialty food products in the United States and Canada. Its product portfolio includes approximately 34,000 stock-keeping units comprising specialty food products, such as artisan charcuterie, specialty cheeses, unique oils and vinegars, truffles, caviar, chocolate, and pastry products. The company also offers a line of center-of-the-plate products, including custom cut beef, seafood, and hormone-free poultry, as well as food products, such as cooking oils, butter, eggs, milk, and flour. It serves menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolatiers, cruise lines, casinos, and specialty food stores. The Chefs Warehouse, Inc. markets its center-of-the-plate products directly to consumers through a mail and e-commerce platform. The company was founded in 1985 and is headquartered in Ridgefield, Connecticut.

Recent News:

As per Zacks survey of market experts, the average EPS estimate for The Chefs’ Warehouse, Inc. stands at $0.22 for the current quarter. The company is expected to report its quarterly results on 2017-02-16 or around that date.

For its third quarter ended September 23, 2016, the company reported net sales increased 7.8% to $297.9 million from $276.3 million for the third quarter of 2015. GAAP net income was $1.3 million or $0.05 per diluted share, compared to $5.2 million, or $0.20 per diluted share, in the third quarter of 2015.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

@@@@@

Profitability – Measures the historical price movement of the stock.

@@@@@

Solvency – Measures the solvency of the company based on several ratios.

@@@@@

Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

@@@@@

Conclusion:

CHEF’s strengths can be seen in its better growth, better profitability and strong efficiency compared with its peers. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator and RSI is increasing to 46.74 with positive bias. We rate The Chefs’ Warehouse, Inc. (CHEF) a STRONG BUY.