11:41 AM EDT, 04/30/2026 (MT Newswires) -- Chefs' Warehouse ( CHEF ) delivered a strong Q1, with results beating expectations across key metrics and reinforcing momentum in its core business, as organic revenue growth reached 10.4%, ahead of consensus estimates of about 7%, Morgan Stanley said in a Thursday note.

The analysts said the upside was driven by strong volume growth and favorable mix, with 4.1% inflation contributing, while adjusted earnings before interest, taxes, depreciation, and amortization of $60 million beat estimates, with margins expanding about 70 basis points to 5.7% on operating efficiency and top-line strength.

Morgan Stanley said Middle East concerns were less severe than feared, with only a roughly 50 basis point headwind in the quarter; volumes are about 75% of last year's levels and could weigh by around 50 basis points per month if conditions persist.

The researchers noted continued momentum into the current quarter, with double-digit organic growth carrying into April, indicating resilient demand despite a mixed macro backdrop.

Morgan Stanley maintained an overweight rating on the stock and raised its price target to $83 from $76.

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