The Chefs Warehouse Inc

The Chefs' Warehouse raised its full-year 2026 guidance, now projecting net sales of $4.5 billion to $4.6 billion and adjusted EBITDA of $305 million to $315 million. The company also extended its long-term targets to 2030, aiming for annual revenue growth of 7% to 10% to reach $6 billion to $6.5 billion in revenue and adjusted EBITDA of $450 million to $520 million with margins of 7.5% to 8%. Second-quarter net sales rose 12.9% to $1.169 billion, with gross profit up 15.2% to $292.9 million and gross margin expanding 49 basis points to 25.1%. Management cited accelerating share gains and operating leverage from multi-year investments, while noting gradual improvement in Middle East operations now running at about 94% of prior-year levels. The company also reported GAAP net income of $33.8 million, or $0.76 per diluted share, and adjusted net income of $34.7 million, or $0.78 per diluted share.

The Chefs' Warehouse is expected to report second-quarter revenue of $1.1 billion and earnings of 64 cents a share when it releases results on July 29, according to Zacks Consensus Estimates. Revenue would represent a 9.5% increase from the prior-year quarter, while earnings would mark a 23.1% gain. The company's North American business likely benefited from market-share gains, deeper customer penetration, and demand from restaurants and hotels, though Middle East disruptions and weak hotel occupancy in tourism-dependent markets may have weighed on results. Zacks rates the stock a Sell with an Earnings ESP of 0.00%, indicating no clear signal for an earnings beat.

Online grocery sales jumped 19% in the first quarter of 2026, following a 20% increase in the final quarter of 2025, according to Brick Meets Click. The report highlights that delivery and ship-to-home services have grown nearly six times faster than pickup, driven by faster fulfillment and ultra-fast delivery. Total grocery spending share has climbed every quarter, rising more than 19% over the last six quarters to its highest level by the end of the first quarter of 2025. Zacks Investment Research recommends four grocery stocks with strong online arms: Tyson Foods, The Chefs' Warehouse, Darling Ingredients, and Mama's Creations. Tyson Foods holds a Zacks Rank #2, while the other three carry a Zacks Rank #1, with Darling Ingredients expected to see earnings growth of more than 100% this year.