What: Shares of The Chefs' Warehouse Inc. (NASDAQ:CHEF) got sliced and diced last month, falling 21%, according to data from S&P Global Market Intelligence, thanks to a disappointing first-quarter earnings report.
So what: As the chart above shows, shares of The Chefs' Warehouse plunged 17% on May 4 as the company fell short of expectations. It posted an adjusted earnings per share of $0.05, below the analyst consensus at $0.09, while revenue jumped 33% to $262.4 million, primarily driven by the Del Monte Meat acquisition. However, that also missed estimates of $265 million.
CEO Chris Pappas said, "The core specialty business is off to a strong start," and also noted that the protein division experienced strong gross margin expansion.
Now what: For the full year, the seller of specialty food products said it expects revenue of $1.15 billion to $1.18 billion and adjusted earnings per share of $0.77-$0.83, a reduction from prior guidance and below analyst expectations of $0.85.
The company's ability to integrate Del Monte Meat should go a long way to determining its future growth. Chefs' Warehouse has recently made a number of acquisitions, driving revenue nearly three times higher over the last five years; however, earnings have been mostly flat. The opportunity appears to be there, but the company has yet to take advantage.
Jeremy Bowman has no position in any stocks mentioned. The Motley Fool recommends The Chefs' Warehouse. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.