Chefs’ Warehouse Stock Fair Value Calculator – CHEFS’ WAREHOUSE Reports Second Quarter Earnings for FY2023 Ending June 30 2023
August 10, 2023
🌥️Earnings Overview
On August 2, 2023, CHEFS’ WAREHOUSE ($NASDAQ:CHEF) released their financials for the second quarter of FY2023, ending June 30, 2023. Compared to the same quarter from the previous year, total revenue increased by 36.1%, amounting to USD 881.8 million; however, net income dropped by 41.7%, totaling USD 9.9 million.
Price History
On Wednesday, CHEFS’ WAREHOUSE reported their second quarter earnings for FY2023 ending June 30, 2023. The financial report showed a decrease in stock value, with the stock opening at $32.5 and closing at $31.6 – a plunge of 13.1% from the prior closing price of 36.4. The company’s management indicated that the decrease in stock value was largely driven by lower than anticipated revenue from their grocery, restaurant, and catering businesses. They attributed the reduced sales to the decreased demand for their services as a result of the economic downturn caused by the pandemic. As a result of the lower than expected earnings, CHEFS’ WAREHOUSE has taken several measures to increase efficiency and reduce costs.
This includes optimizing processes, streamlining operations, and consolidating production operations. The company has also implemented several initiatives to help drive innovation and growth, such as expanding their digital capabilities and investing in new technology. Overall, although the company’s stock has taken a hit due to the pandemic, CHEFS’ WAREHOUSE remains optimistic about its long-term prospects. They are confident that their cost cutting measures and strategic investments will help them bounce back in the long run and return to profitability in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Chefs’ Warehouse. More…
| Total Revenues | Net Income | Net Margin |
| 3.05k | 20.72 | 0.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Chefs’ Warehouse. More…
| Operations | Investing | Financing |
| 14.14 | -299.26 | 293.94 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Chefs’ Warehouse. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.65k | 1.23k | 10.66 |
Key Ratios Snapshot
Some of the financial key ratios for Chefs’ Warehouse are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 29.7% | 19.1% | 2.9% |
| FCF Margin | ROE | ROA |
| -1.0% | 13.4% | 3.4% |
Analysis – Chefs’ Warehouse Stock Fair Value Calculator
At GoodWhale we have conducted a detailed analysis of CHEFS’ WAREHOUSE fundamentals. After taking into account key metrics such as debt/equity, earnings per share, and return on equity, our proprietary Valuation Line has determined the intrinsic value of CHEFS’ WAREHOUSE share is around $49.9. This indicates that the current share price of $31.6 is undervalued by 36.7%. Thus, we believe CHEFS’ WAREHOUSE represents an attractive investment opportunity. More…
Peers
The company has a strong focus on customer service and offers a variety of services, such as online ordering and same-day delivery, to its customers. The Chefs’ Warehouse Inc competes with other foodservice distributors, such as Innovative Food Holdings Inc, Cool Link (Holdings) Ltd, and Vadilal Enterprises Ltd.
– Innovative Food Holdings Inc ($OTCPK:IVFH)
Innovative Food Holdings Inc is a foodservice company that delivers fresh, frozen, and dry food products to restaurants and other foodservice establishments. The company has a market cap of 9.43M as of 2022 and a return on equity of -0.18%. The company’s products include fresh fruits and vegetables, meat and seafood, dairy, prepared foods, and other food items.
– Cool Link (Holdings) Ltd ($SEHK:08491)
Link is a leading retailer and distributor of electronic products and services in Hong Kong and Macau. It operates over 200 stores and offers a wide range of products, including mobile phones, tablets, laptops, digital cameras, and gaming consoles. Link also provides repair and warranty services.
Link’s market cap is 40.72M as of 2022. Its ROE is -4.94%.
The company’s primary business is the retail and distribution of electronic products and services in Hong Kong and Macau. Link also provides repair and warranty services for its products.
– Vadilal Enterprises Ltd ($BSE:519152)
Vadilal Enterprises Ltd is a food and beverage company based in India. The company has a market cap of 2.14B as of 2022 and a return on equity of 306.88%. The company manufactures and sells ice cream, frozen desserts, and other food products. It also operates restaurants and ice cream parlors. The company was founded in 1907 and is headquartered in Ahmedabad, India.
Summary
Investors in Chefs’ Warehouse were disappointed with the company’s second quarter earnings report. Total revenue rose 36.1% year over year, but net income decreased 41.7%. The stock price dropped significantly in response. Going forward, analysts will be watching to see if the company can continue to grow revenue and reverse the declining net income trend.
Investors should also consider whether Chefs’ Warehouse is using its resources effectively to generate returns. Close monitoring of the company’s performance and stock price will be key for investors.
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