Aldous Alexandros, the General Counsel of Chefs' Warehouse, Inc. (NASDAQ:CHEF), recently sold 5,000 shares of the company’s common stock. The transaction, executed on November 22, 2024, was conducted under a 10b5-1 trading plan established earlier this year on March 14. The shares were sold at a price of $45 each, amounting to a total transaction value of $225,000. Following this sale, Alexandros holds 114,342 shares directly.
In other recent news, The Chefs' Warehouse (NASDAQ:CHEF) has shown steady growth in its Q3 2024 results, reporting a 5.6% organic growth in net sales, reaching $931.5 million, and a rise in gross profit margin to 24.1%. Specialty sales also saw a 7.5% increase, driven by a 4.7% growth in unique customer accounts. Despite softer demand in July due to seasonal factors and Hurricane Beryl, the company updated its full-year financial guidance with net sales projected between $3.710 billion and $3.775 billion, and an adjusted EBITDA of $210 million to $219 million.
The company also repurchased $10 million in shares and discussed a term loan of $262 million maturing in 2029 with a reduced coupon rate. The integration of Hardee's is expected to improve EBITDA margins by 20 to 30 basis points. These recent developments indicate the company's focus on market share growth and operational efficiency.
In an additional move, The Chefs' Warehouse announced an amendment to its bylaws to transition away from physical stock certificates. The company's board of directors has decided that all shares will be issued in book-entry form, eliminating the need for paper certificates. This move reflects a broader industry trend toward digital management of securities, which offers increased security and efficiency for both the company and its shareholders.
InvestingPro Insights
The recent stock sale by Aldous Alexandros comes at a time when The Chefs' Warehouse, Inc. (NASDAQ:CHEF) is experiencing significant market momentum. According to InvestingPro data, CHEF has seen a remarkable 65.89% price total return over the past year, with a 13.67% return in just the last month. This strong performance has pushed the stock to trade near its 52-week high, with the current price at 98.73% of that peak.
The company's financial metrics paint a picture of growth and profitability. CHEF's revenue for the last twelve months as of Q3 2023 stood at $3.71 billion, with a 13.33% growth rate. The company's EBITDA also showed robust growth of 15.71% over the same period, indicating improving operational efficiency.
InvestingPro Tips highlight that CHEF is trading at a high earnings multiple, with a P/E ratio of 35.9. This valuation could be justified by the company's strong market performance and growth prospects. Analysts predict the company will remain profitable this year, which aligns with its current trajectory.
It's worth noting that while CHEF doesn't pay a dividend, it has demonstrated significant returns for shareholders through stock price appreciation. The company's liquid assets exceed short-term obligations, suggesting a solid financial position.
For investors seeking a deeper understanding of CHEF's potential, InvestingPro offers 11 additional tips, providing a more comprehensive analysis of the company's financial health and market position.
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