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Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue.
The Chefs' Warehouse's Degree of Operating Leverage for the quarter that ended in Jun. 2026 was 2.07. The higher Degree of Operating Leverage, the higher operating risk the company will take.
The industry rank for The Chefs' Warehouse's Degree of Operating Leverage or its related term are showing as below:
FRA:2CF's Degree of Operating Leverage is ranked worse than 68.4% of 307
companies
in the Retail - Defensive industry
Industry Median: 0.75
vs FRA:2CF: 2.07
The Chefs' Warehouse (FRA:2CF) Degree of Operating Leverage Explanation
Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.
A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.
Be Aware
The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.
The Chefs' Warehouse Degree of Operating Leverage Related Terms
The Chefs' Warehouse Degree of Operating Leverage Historical Data
* Premium members only.
The historical data trend for The Chefs' Warehouse's Degree of Operating Leverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
The Chefs' Warehouse Degree of Operating Leverage Chart
FRA:2CF vs UNFI, ANDE, AVO: Degree of Operating Leverage Comparison
For the Food Distribution subindustry, The Chefs' Warehouse's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
The Chefs' Warehouse Degree of Operating Leverage vs Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, The Chefs' Warehouse's Degree of Operating Leverage distribution charts can be found below:
* The bar in red indicates where The Chefs' Warehouse's Degree of Operating Leverage falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
What does a Degree of Operating Leverage of 2.07 mean?
The Chefs' Warehouse (FRA:2CF) has a Degree of Operating Leverage of 2.07 as of Jun. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for The Chefs' Warehouse and its competitors. According to the industry distribution chart, The Chefs' Warehouse ranks #210 out of 307 companies in the Retail - Defensive industry, placing it in the top 68.4%.
Is The Chefs' Warehouse's Degree of Operating Leverage too high?
The Chefs' Warehouse's current Degree of Operating Leverage is 2.07. The Retail - Defensive industry median Degree of Operating Leverage is 0.75. The Chefs' Warehouse's value of 2.07 is 176% above this industry median. Based on the distribution chart, The Chefs' Warehouse ranks #210 out of 307 companies in the Retail - Defensive industry, which is below the industry midpoint. Overall, The Chefs' Warehouse has a GF Score™ of 72/100, reflecting its overall financial health beyond just this single metric.
How does The Chefs' Warehouse's Degree of Operating Leverage compare to UNFI and ANDE?
According to the Retail - Defensive industry distribution chart, The Chefs' Warehouse ranks #210 out of 307 companies for Degree of Operating Leverage. This places The Chefs' Warehouse in the lower half of its industry. The industry median Degree of Operating Leverage is 0.75. The Chefs' Warehouse's value of 2.07 is 176% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Retail - Defensive company?
The median Degree of Operating Leverage among Retail - Defensive companies is 0.75, based on 307 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. The Chefs' Warehouse's current Degree of Operating Leverage of 2.07 is 176% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for The Chefs' Warehouse and its competitors. For the Retail - Defensive industry, the median Degree of Operating Leverage is 0.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. The Chefs' Warehouse's current Degree of Operating Leverage is 2.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is The Chefs' Warehouse stock overvalued right now?
The Chefs' Warehouse (FRA:2CF) has a current Degree of Operating Leverage of 2.07. The stock's GF Value™ is €52.39, compared to a current price of €96.00 — trading 83.2% above its estimated fair value. The current Degree of Operating Leverage is 2.07 and 176% above the Retail - Defensive industry median of 0.75. The Chefs' Warehouse's overall GF Score™ is 72/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For The Chefs' Warehouse (FRA:2CF), the current Degree of Operating Leverage is 2.07 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is The Chefs' Warehouse (FRA:2CF) Overvalued in 2026?
Based on GuruFocus' analysis, The Chefs' Warehouse stock appears to be overvalued.
The current stock price of €96.00 is trading 83.2% above its estimated GF Value™ of €52.39.
Key valuation signals for FRA:2CF:
Degree of Operating Leverage: 2.07
GF Value™: €52.39 vs. price of €96.00 (83.2% above fair value)
Industry Position: 176% above the Retail - Defensive median (#210 of 307)
No single metric tells the full story. See the FRA:2CF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
The Chefs' Warehouse Inc is a specialty food distributor in metropolitan areas across the United States, the Middle East and Canada. The company's product portfolio is comprised of imported and local specialty food products such as cheese, cooking oils, chocolates, dried food, baking products, meats, and other food products. It operates via one reporting segment called Food Product Distribution. Operations are concentrated on the east, midwest, and west coasts of the U.S. The company provides service to restaurants, clubs, hotels, caterers, schools, bakeries, casinos, and specialty food stores.
72GF Score
Get the complete analysis for FRA:2CF
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