The Chef’s Warehouse (NASDAQ:CHEF) shares are trending higher today after the specialty food products distributor delivered better-than-expected numbers for the fourth quarter. Revenue jumped by 20.1% year-over-year to $950.5 million, exceeding estimates by $39.8 million. In tandem, EPS of $0.47 outpaced expectations by $0.05.
The quarter was characterized by improving business activity, an increase of 11.3% in organic sales, and margin gains for the company. Its gross margin improved by 38 basis points to 24.1%. However, CHEF’s selling, general, and administrative (SG&A) expenses increased by 23.8% to $190 million. This increase was driven by higher benefits, facility, and distribution costs. Still, the company’s net income jumped to $16 million from $1.2 million in the comparable year-ago period.
Looking ahead to Fiscal Year 2024, CHEF foresees net sales in the range of $3.625 billion to $3.775 billion. Adjusted EBITDA for the year is seen landing between $205 million and $218 million.
Is CHEF a Good Stock to Buy?
Overall, the Street has a Strong Buy consensus rating on The Chef’s Warehouse. Following a nearly 32% jump in the company’s share price over the past three months, the average CHEF price target of $43.80 points to a further 30.5% potential upside in the stock.
Read full Disclosure
