CHEF - Chefs' Warehouse tipped for more M&A amid tough industry conditions

BTIG defends Chefs' Warehouse ([[CHEF]] -4.8%) after the company's earnings report highlighted labor and commodity pressure.Analyst Peter Saleh: "The current commodity inflation is a function of labor shortages across the supply chain, with fewer employees available to process food, containers and distribution. We expect this inflationary dynamic to continue in 2Q and 3Q, pressuring gross margin and EBITDA generation, before subsiding later in the year as unemployment benefits come to an end. Additionally, the tight labor environment is delaying the opening of some new customers that have signed leases but have pushed opening until the labor scarcity ends."The tough landscape for some food service companies is seen potentially leading to more M&A for CHEF following on its purchase of M.F. Foley Company."The acquisition follows the purchase of Harris Seafood in Orlando, Florida last October. We would not be surprised to more M&A activity this year as smaller distributors grapple with the

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Chefs' Warehouse tipped for more M&A amid tough industry conditions