Chefs' Warehouse Sees Earnings Take a Hit

Distributing food has become much more demanding over the years, and Chefs' Warehouse (NASDAQ: CHEF) has taken full advantage of the appetite for higher-quality ingredients to build up its business. Yet the restaurant industry has gone through turmoil lately, and coming into Wednesday's third-quarter financial report, Chefs' Warehouse investors wanted to see signs that the company would be able to sustain growth at a healthier pace even amid difficult conditions. Chefs' Warehouse wasn't able to satisfy its shareholders completely, seeing solid revenue gains but falling net income. Nevertheless, the company is optimistic that its long-term prospects are good. Let's take a closer look at how Chefs' Warehouse did and whether it can bounce back in the future.

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Chefs' Warehouse falls short on the bottom line

Chefs' Warehouse's third-quarter results were representative of what the food industry has seen lately. Revenue climbed almost 8% to $297.9 million, which was only slightly slower than the 9% growth that investors had expected to see. Net income fell by three-quarters from year-ago levels, however, and even after making pro forma adjustments, adjusted earnings fell by two-thirds to $0.07 per share, falling $0.01 per share short of the consensus forecast among those following the stock.

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