Recent performance snapshot

Chefs' Warehouse (CHEF) has drawn fresh attention after a period of solid share price moves, with the stock last closing at $68.44 and showing gains over the past week, month, and past 3 months.

For context, Chefs' Warehouse has recently shown building momentum, with an 18.59% 90 day share price return, alongside longer term total shareholder returns of 4.81% over 1 year and 123.30% over 5 years.

If this move has you thinking about what else could be on your radar, it might be a good time to scan our 23 top founder-led companies as potential next ideas.

With Chefs' Warehouse trading at $68.44, some metrics hint at a discount to estimated value, yet recent gains suggest momentum is already strong. Is there still an entry point here, or is the market already pricing in future growth?

Most Popular Narrative: 10.1% Undervalued

Chefs' Warehouse closed at $68.44 against a widely followed fair value narrative of $76.13, which frames the current move as only part of the story.

Operational improvements such as investments in procurement, digital ordering (now ~60% of specialty sales), predictive demand forecasting, and inventory optimization technology are already contributing to margin efficiency and scalability, laying the groundwork for further net margin and earnings expansion as these initiatives mature.

Curious how a premium food distributor justifies that valuation gap? The narrative leans on faster earnings growth, gradual margin lift, and a future earnings multiple that assumes Chefs' Warehouse keeps earning its specialty status with customers.

Result: Fair Value of $76.13 (UNDERVALUED)

However, this hinges on premium foodservice demand holding up, as well as on Chefs' Warehouse managing acquisition integration and cost pressures without putting margins or earnings at risk.

Another angle on valuation

The fair value narrative points to Chefs' Warehouse trading below estimated worth, but the current P/E of 38.5x tells a tougher story. It sits above the US Consumer Retailing industry at 23.4x, the peer average at 30.5x, and a fair ratio of 20.9x, which signals meaningful valuation risk if sentiment cools.

Build Your Own Chefs' Warehouse Narrative

If you see the numbers differently or prefer to test your own assumptions, you can build a fresh view of Chefs' Warehouse in just a few minutes, starting with Do it your way.

A great starting point for your Chefs' Warehouse research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.