Why Chef's Warehouse Stock Jumped Almost 10% on Friday
Chef's Warehouse (NASDAQ: CHEF) stock was trading almost 10% higher as of 3:15 p.m. ET Friday, trouncing the S&P 500's 2.6% increase. The surge added to a great week for the food specialist, as shares are up by more than 20%.
Chef's Warehouse announced on Wednesday that the company is likely to sail past the short-term sales and earnings outlook that its management had issued back in April. Revenue should now land between $2.3 billion and $2.4 billion, executives said, compared to the prior forecast range of $2.1 billion to $2.2 billion. Projected earnings also received an upgrade.
Wall Street responded by sending shares higher, as few other consumer-facing companies are enjoying such strong sales and profit gains. The specialty foods niche seems insulated from much of the price sensitivity that has harmed other segments. Prices jumped 22% last quarter, for example, yet demand was still strong across Chef's Warehouse's portfolio.
Source Fool.com
