The specialty food distributor announced that it now expects revenue of $670 million to $673 million for fiscal year 2013, which is in line with expectations of analysts surveyed by Thomson Reuters. Chef's Warehouse also expects adjusted net income between 80 cents and 81 cents a share, below analyst estimates of 90 cents a share. The net income is even with the net income of the year before despite a 40% increase in revenue.
In a press release, CEO Christopher Pappas said "Top-line performance of our core business for 2013 was toward the lower end of our expectations, due in part to adverse weather." December was also much weaker than the company expected according to Pappas' statement.
Following the lowered guidance BB&T Capital downgraded Chef's Warehouse to "hold" from "buy." The firm also removed its price target for the company, which was previously set at $29.
TheStreet Ratings team rates CHEFS' WAREHOUSE INC as a "buy" with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CHEFS' WAREHOUSE INC (CHEF) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."