A month has gone by since the last earnings report for Chefs' Warehouse (CHEF Quick QuoteCHEF - Free Report) . Shares have lost about 0.9% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Chefs' Warehouse due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

CHEF Q2 Earnings Beat Estimates on Volume and Margin Gains

The Chefs’ Warehouse reported second-quarter 2026 results, wherein both earnings and sales surpassed the Zacks Consensus Estimate and increased from the year-ago quarter. Adjusted earnings of 78 cents per share beat the consensus estimate of 64 cents by 21.9% and rose 50% year over year. Net sales increased 12.9% to $1,168.6 million, exceeding the consensus estimate of $1,133 million by 3.1%.

Organic sales rose 12.2% from the prior-year quarter. Acquisitions contributed $7.6 million, representing growth of 0.7%. The strong organic performance reflected growth across the specialty and center-of-the-plate categories. Management attributed the results to greater product penetration, increased case volumes and expansion in the number of unique customers.

Organic case count in the specialty category increased approximately 6% year over year. Unique customers rose 3.6%, while product placements advanced 7.2%, indicating higher sales across a broader customer base. Organic pounds sold in the center-of-the-plate category increased approximately 8.8% from the year-ago period. Management stated that its regional teams delivered solid execution across markets and product categories. The company’s Middle East operations improved gradually during the quarter. Operations in the region ran at approximately 94% of the prior-year level during May and June, with that trend remaining relatively steady in recent weeks.

Chefs’ Warehouse Keeps Costs Under Control

Gross profit advanced 15.2% year over year to $292.9 million, driven by higher sales volumes, price inflation and contributions from acquisitions. Gross margin expanded 49 basis points to 25.1%. The specialty-category gross margin improved 47 basis points, while the center-of-the-plate category recorded a 75-basis-point increase. The improvement in gross margin, along with double-digit sales growth, supported stronger operating profitability. Higher gross profit more than offset the increase in operating expenses during the quarter.

The company’s selling, general and administrative expenses increased 9.6% year over year to $234.2 million. The increase primarily reflected higher compensation and benefit costs, as well as additional facilities and distribution expenses to support sales growth. However, SG&A expenses declined to 20% of net sales from 20.7% in the prior-year quarter, as sales grew faster than costs.

Operating income jumped to $58.6 million from $40.2 million a year ago. Operating margin expanded to 5.1% from 3.9%, reflecting higher gross profit and improved expense leverage. Adjusted EBITDA increased 34.6% year over year to $88.1 million from $65.4 million.

CHEF’s Financial Snapshot & Guidance

CHEF ended the second quarter with cash and cash equivalents of $135.5 million, long-term debt (excluding the current portion) of $693.7 million and stockholders’ equity of $648.2 million.
For the first half of 2026, net cash provided by operating activities was $96.7 million, and capital expenditures totaled $16.9 million.

For 2026, management expects net sales in the range of $4.5-$4.6 billion. Gross profit is projected between $1.102 billion and $1.125 billion. Adjusted EBITDA is anticipated in the range of $305-$315 million.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 11.66% due to these changes.

VGM Scores

At this time, Chefs' Warehouse has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Chefs' Warehouse has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Chefs' Warehouse belongs to the Zacks Food - Miscellaneous industry. Another stock from the same industry, Lamb Weston (LW Quick QuoteLW - Free Report) , has gained 2.3% over the past month. More than a month has passed since the company reported results for the quarter ended May 2026.

Lamb Weston reported revenues of $1.77 billion in the last reported quarter, representing a year-over-year change of +5.6%. EPS of $0.87 for the same period compares with $0.87 a year ago.

Lamb Weston is expected to post earnings of $0.58 per share for the current quarter, representing a year-over-year change of -21.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.4%.

Lamb Weston has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.