Pendulum
Long/short equity, value, special situations, growth

Bullish On Chefs' Warehouse: 60% Upside Potential In 1-2 Years And Great Long-Term Story

Chefs' Warehouse (NASDAQ:CHEF) is a distributor of high-end foods to top restaurants. The CEO recently said that the company has the potential to capture a $4-5 billion market opportunity over four to seven years. Currently, it has an equity valuation of ~$400 million on $520 million of LTM revenue, so that target suggests 10x upside potential. Three near-term catalysts are creating the opportunity for 60% upside over the next 1-2 years: [i] recent acquisitions, [ii] a debt offering that gives the company over $100 million of buying power for additional deals and [iii] a 13% sell-off in the stock price. The company is overlooked because of its small size and the nature of its business model, but these...

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