The Chef’s Warehouse (CHEF) is experiencing some pressure on its operating margins. The data shows that its EBITDA margin has fluctuated between 4.9% and 7.4% from 2009 to 2014. Additionally, there are several temporary factors affecting the margins across the different geographic locations where the company operates. These factors include the expansion of square footage in Las Vegas, consolidation of facilities in Chicago, delays in the use of new facilities in New York, and major acquisitions in San Francisco.
The company’s long-term plan includes both M&A growth and organic growth strategies. They aim to increase penetration by layering more SKUs onto platform acquisitions, establish beach-heads in new geographies, and build relationships with up-and-coming chefs. The CFO, John Austin, has stated that they believe they can double the business within five to seven years.
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