CHEF - Chef's Warehouse stock surges on earnings beat raised forecast

The Chefs' Warehouse ( NASDAQ: CHEF ) posted stronger than expected earnings and forecasting further acceleration into year-end.

The Connecticut-based food distributor posted $0.41 in earnings per share for the third quarter, rising $0.13 above analyst estimates. Meanwhile, a 36.7% jump in revenue from the prior year to $661.9M came in $41.26M above expectations.

“Customer demand was strong throughout the third quarter and the cadence of business activity returned to seasonal shifts more typical of the pre-pandemic environment. Seasonal September strength due to “return from vacations” was complimented by a moderate increase in “return to office” activity in many of our larger markets,” CEO Chris Pappas said. “While product cost, in aggregate, remained relatively unchanged versus the second quarter of 2022, pricing continues to be firm in most categories. We continue to see new openings and gradual increases in hotel, catering and event related business.”

As such, Pappas indicated that the company would raise its net sales outlook for the full year to  a range between $2.45B and $2.55B from a prior outlook of $2.375B to $2.475B. Analysts had anticipated $2.45B in sales for the year. Gross profits for the full year are slated to be between $575M and $599M.

Shares of Chef’s Warehouse ( CHEF ) rose 6.69% on Wednesday.

Read more on why the SeekingAlpha Quant team is bullish on the stock .

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