Talk about earning a spot at the table. Chefs' Warehouse made this month's list of new buys by the best mutual funds while also pulling up a chair on the Investor's Business Daily Breakout Stocks Index. Adding icing to the cake, the stock has also popped onto the IBD Stock Spotlight screen.
The distributor of specialty food products in the U.S., Middle East and Canada also ranks among the leaders in the food preparation group with a strong 97 Composite Rating out of a possible 99. The group ranks a solid No. 24 among the 197 industries IBD tracks.
Chefs' Warehouse Fires Up Demand
Headquartered in Ridgefield, Conn., Chefs' Warehouse has used its international footprint to help spark growth — and demand on Wall Street.
The company serves the specific needs of chefs at restaurants ranging from fine dining establishments and country clubs to hotels, culinary schools, cruise lines, casinos and more. Chefs' Warehouse carries and distributes more than 88,000 products to more than 50,000 customer locations.
In addition to making the latest list of new buys by top funds, signs of demand for shares of CHEF stock include a B+ Accumulation/Distribution Rating, a 1.5 up/down volume ratio, and four quarters of rising fund ownership
In the first quarter, earnings growth jumped 67% to 25 cents per share, marking a second quarter of accelerating gains. Revenue came in at $950.8 million, a 9% year-over-year gain. When Chefs' Warehouse reports at the end of July, analysts forecast 6% sales growth to just over $1 billion and 15% earnings growth to 46 cents per share.
For the full year, Wall Street expected 19% earnings growth to $1.74 per share. For 2026, analysts see a 17% gain to $2.04 per share.
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Chefs' Warehouse Stock Taste-Tests Buy Point
With its relative strength line within striking distance of a 52-week high, shares of Chefs' Warehouse are closing in on a 65.39 buy point in an early-stage cup with handle. The stock edged higher Wednesday, marking a third straight up day.
A common occurrence in the current market, Chefs' Warehouse stock has weathered a spot of volatility and is back on the rise. The stock continues to trade above its 50-day moving average since retaking that benchmark after reporting earnings last month. Its 21-day exponential moving average has also climbed back above the long-term 50-day line, a sign of rebounding technical strength.
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