CHEF - Why Chef's Warehouse Stock Was Down 12% This Week
Chefs' Warehouse (NASDAQ: CHEF) investors lost ground to a declining market this week. Shares were down 12% through Thursday trading compared to a 2.7% slump in the wider market, according to data provided by S&P Global Market Intelligence . That drop put the stock at a 2% increase so far for the year, while the S&P 500 is down 17% in 2022.
The dip came as investors learned that Chefs' Warehouse is taking on new debt.
Chefs' Warehouse announced on Wednesday that it is seeking up to $250 million in new loans in the form of controvertible notes. Additional debt brings increased interest expenses, which are pressuring the specialty food provider's earnings right now.
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Why Chef's Warehouse Stock Was Down 12% This Week