Chefs’ Warehouse (CHEF) reported Q4 adjusted earnings of **$0.68 per share**, beating the **$0.62** consensus estimate and rising from **$0.55** a year ago. That equals an **earnings surprise of +9.68%**. In the prior quarter, earnings of **$0.50** topped the **$0.43** estimate, a **+16.28%** surprise.
Quarterly revenue was **$1.14 billion** for the period ended **December 2025**. That beat forecasts by **4.38%** and increased from **$1.03 billion** a year earlier. Over the past four quarters, the company beat consensus **EPS and revenue** estimates **four times each**.
CHEF shares are up about **4.9%** year to date, versus a **1.4%** gain for the S&P 500. Going into the release, the company faced an **unfavorable estimate revision trend** and holds a **Zacks Rank #4 (Sell)**.
Consensus estimates call for **$0.30 EPS** on **$1.02 billion** in revenue next quarter, and **$2.22 EPS** on **$4.39 billion** in revenue for the current fiscal year. The **Food – Miscellaneous** industry ranks in the bottom **23%** of more than 250 Zacks industries. Historically, the top 50% of industries have outperformed the bottom 50% by more than **2-to-1**.
**Flowers Foods (FLO)** reports on **12 February**, with estimates of **$0.16 EPS** (down **27.3%** year over year) on **$1.23 billion** of revenue (up **10.9%**).
We are seeing a positive early reaction to Chefs’ Warehouse beating both earnings and revenue expectations for Q4 2025. The stock is indicated to open higher, adding to its recent outperformance versus the S&P 500. This strong report contrasts with the negative analyst sentiment seen before the release.
Implied volatility was elevated into the announcement, with 30-day IV reaching **45%**, well above its 52-week average of **35%**. Now that earnings have been released, some of that premium may fade in a typical post-earnings **IV crush**. In this setup, selling options—such as **covered calls** or **cash-secured puts**—may appeal to investors who expect the stock to stabilize.
The bearish sentiment reflects broader industry pressure, as the Food – Miscellaneous sector has been underperforming. Recent National Restaurant Association data showed a **0.5%** drop in traffic for **January 2026**, which may signal softer discretionary spending. Because of this, management’s guidance on the earnings call will be important for clues about demand trends in Q1.
The next key watch item is how analysts adjust their estimates over the coming week. Those changes could either support or challenge the current **Sell** rating. One potential options approach is to use short-dated spreads to limit risk while positioning for a slow move higher if estimates rise. On the other hand, if management’s outlook is cautious, **puts** may look more attractive as the market reassesses the company’s strong 2025 performance.
here to set up a live account on VT Markets now
