Why Chefs' Warehouse Shares Are Sizzling

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of The Chefs' Warehouse (NASDAQ: CHEF  ) rose as much as 10% today, and have settled into gains slightly in excess of 8% at the close, after the market reacted favorably to a strong earnings report.

So what: Chefs' Warehouse reported revenue of $142.6 million for its fourth quarter, a 22% gain year over year, and well in advance of the $130.2 million Wall Street consensus. On the bottom line, Chefs' Warehouse earned $0.24 per share, $0.02 better than the consensus. Looking ahead, the company now sees full-year revenue for 2013 in the $610 million to $640 million range, and EPS of $0.88 to $0.98. Chefs' Warehouse's revenue guidance is well ahead of the $568.2 million that analysts sought, but EPS barely surpasses the consensus of $0.96.

Now what: The company's EPS guidance is at least 28% higher and, at most, 42% higher than its 2012 fiscal-year result. That's a pretty impressive growth rate for a company with a relatively modest 23.6 P/E, after today's report. It might be worth keeping your eye on this company. Nobody's going to stop eating any time soon.

Want more news and updates? Add Chefs' Warehouse to your Watchlist now.

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