The 10-second takeaway
For the quarter ended Sep. 28 (Q3), Chefs' Warehouse beat expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share grew.
Gross margins dropped, operating margins expanded, net margins grew.
Chefs' Warehouse reported revenue of $124.8 million. The four analysts polled by S&P Capital IQ expected revenue of $116.9 million on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $101.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.21. The four earnings estimates compiled by S&P Capital IQ forecast $0.21 per share. GAAP EPS were $0.18 for Q3 against -$0.06 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.9%, 30 basis points worse than the prior-year quarter. Operating margin was 5.9%, 60 basis points better than the prior-year quarter. Net margin was 3.1%, 430 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $137.3 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $467.1 million. The average EPS estimate is $0.84.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Chefs' Warehouse is buy, with an average price target of $19.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. 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.