CHEF - Why The Chefs' Warehouse Stock Tumbled as Much as 10% Today
Shares of The Chefs' Warehouse (NASDAQ: CHEF) , which sells specialty food products to restaurants and other food venues, dropped as much as 10% today. Although the stock had clawed back some of the decline, it was still lower by roughly 6% at 3:30 p.m. EDT. Driving the negative mood here was the company's pre-market earnings release.
Revenue for the first quarter of 2021 came in at $280.2 million, down roughly 25% compared to the $375.4 million it brought in the same quarter last year. The company highlighted business restrictions on its customers due to the coronavirus and reduced menu sizes (a notable trend during the pandemic) as key reasons for the weak sales results. That shouldn't be shocking, given that The Chefs' Warehouse peddles its wares to restaurants, which have been hit hard during the efforts to slow the spread of the coronavirus.
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Why The Chefs' Warehouse Stock Tumbled as Much as 10% Today