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Investing.com - UBS raised its price target on The Chefs’ Warehouse, Inc (NASDAQ:CHEF) to $78.00 from $72.00 on Thursday, while maintaining a Buy rating following the company’s second-quarter results. The stock, currently trading at $66.88, has shown remarkable momentum with a 60.9% return over the past year and is approaching its 52-week high of $68.58. According to InvestingPro data, analyst targets for the stock range from $68 to $85.
The specialty food distributor reported 8.4% net sales growth in the quarter, exceeding the high end of its 4-7% growth algorithm for the third consecutive period. This growth came despite the company moving away from some less attractive legacy Hardie’s businesses, including a commodity protein program in the first quarter and a produce processing and packaging program in the second quarter. The company’s strong execution is reflected in its "GREAT" overall financial health score from InvestingPro, with particularly high marks in growth and price momentum metrics.
UBS noted that The Chefs’ Warehouse has benefited from solid execution and its exposure to a higher-end demographic that has been largely immune to recent pressures in the Food Away From Home space. The company’s performance showed little weakness in the second quarter, according to the investment firm.
Looking ahead, UBS expects The Chefs’ Warehouse to benefit from a healthy setup for the remainder of the year, with summer travel returning to a more normalized pattern for the first time since the COVID pandemic. This normalization has likely supported the company’s business performance in July.
The investment bank also pointed out that The Chefs’ Warehouse’s second-half outlook appears achievable, implying a slowdown in top-line and EBITDA growth against comparatively easier benchmarks than in the first half, positioning the company well for potential further beats and raises that could support multiple expansion.
In other recent news, The Chefs’ Warehouse Inc. reported its second-quarter 2025 financial results, which exceeded Wall Street’s expectations. The company achieved an earnings per share (EPS) of $0.52, surpassing the forecast of $0.45, representing a 15.56% surprise. Revenue for the quarter reached $1.03 billion, slightly above the anticipated $1.01 billion. These results highlight the company’s strong performance in the recent period. Additionally, the announcement of these earnings results was followed by a significant pre-market increase in the company’s stock. While the stock’s price movement is noteworthy, the focus remains on the company’s financial achievements. These developments mark a positive outlook for The Chefs’ Warehouse as it continues to navigate the competitive market.
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