The historical rank and industry rank for The Chefs' Warehouse's Gross Margin % or its related term are showing as below:
CHEF'
s Gross Margin % Range Over the Past 10 Years
Min: 22.32 Med: 24.22 Max: 25.67
Current: 23.72
During the past 13 years, the highestGross Margin % of The Chefs' Warehouse was 25.67%. The lowest was 22.32%. And the median was 24.22%.
CHEF's Gross Margin % is ranked better than 53.38% of 311
companies
in the Retail - Defensive industry
Industry Median: 22.74
vs CHEF: 23.72
The Chefs' Warehouse had a gross margin of 24.05% for the quarter that ended in Dec. 2023 => Competition eroding margins
The 5-Year average Growth Rate of Gross Margin for The Chefs' Warehouse was -0.50% per year.
The Chefs' Warehouse Gross Margin % Historical Data
The historical data trend for The Chefs' Warehouse's Gross Margin % 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.
Competitive Comparison of The Chefs' Warehouse's Gross Margin %
For the Food Distribution subindustry, The Chefs' Warehouse's Gross Margin %, along with its competitors' market caps and Gross Margin % 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's Gross Margin % Distribution in the Retail - Defensive Industry
For the Retail - Defensive industry and Consumer Defensive sector, The Chefs' Warehouse's Gross Margin % distribution charts can be found below:
* The bar in red indicates where The Chefs' Warehouse's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
The Chefs' Warehouse (NAS:CHEF) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
The Chefs' Warehouse had a gross margin of 24.05% for the quarter that ended in Dec. 2023 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
The Chefs' Warehouse Gross Margin % Related Terms
Thank you for viewing the detailed overview of The Chefs' Warehouse's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
The Chefs' Warehouse (The Chefs' Warehouse) Business Description
The Chefs' Warehouse Inc is a specialty food distributor in major metropolitan areas across the United States and Canada. The company's product portfolio is primarily comprised of imported and local specialty food products such as cheese, cooking oils, chocolates, dried food, baking products, meats, and other food products. The Chefs' Warehouse operates via one reporting segment called Food Product Distribution. Operations are concentrated on the east, mid and west coasts of the U.S. The company provides service primarily to restaurants, clubs, hotels, caterers, schools, bakeries, casinos and speciality food stores.
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