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what it is
Middleby makes the ovens, food-processing gear, and high-end kitchen equipment that restaurants, factories, and homeowners buy.
how it gets paid
Last year The Middleby made $3.2B in revenue. Commercial kitchen equipment was the main engine at $1.98B, or 62% of sales.
why it's growing
Revenue grew 269.5% last year. Revenue rose 5% to $866 million, and the last reported quarter beat the $2.30 estimate with $2.42 in adjusted EPS.
what just happened
Middleby beat estimates, but the ugly number was EPS down 64% vs. prior year to $0.74.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
70/100 earnings predictability — reasonably predictable
16.5x trailing p/e — the market's not buying it — or you found a deal
8.5% return on capital — nothing to write home about
xvary composite: 67/100 — average
What they do
Middleby makes the ovens, food-processing gear, and high-end kitchen equipment that restaurants, factories, and homeowners buy.
Middleby wins because its gear sits in the middle of your kitchen workflow. Replacing ovens, warming systems, or food-processing lines is expensive and annoying, which creates switching costs (hard to rip out) so customers stick around. That grip shows up in a 21.0% operating margin and 38.8% gross margin on $3.2 billion of revenue.
How they make money
$3.2B
annual revenue · their business grew +269.5% last year
Commercial kitchen equipment
$1.98B
Food processing equipment
$0.61B
Residential kitchen stake sold
$0.31B
Residential kitchen retained
$0.29B
The products that matter
manufactures commercial foodservice equipment
Commercial Kitchen Equipment
$3.2B revenue · +11.7% growth
it's the entire $3.2B business. the snapshot does not give a cleaner segment split, so your thesis starts with whether this equipment base can keep growing without giving back margin.
100% of revenue
Key numbers
$166
18-month target
That is only about 10% above $150.50, which tells you the market already expects some benefit from the portfolio cleanup.
21.0%
operating margin
Operating margin → profit after running the business → so what: Middleby still turns about $0.21 of each sales dollar into operating profit.
$2.0B
long-term debt
Debt → money owed over years → so what: the balance sheet can handle it, but slower growth makes every borrowed dollar feel heavier.
16.5x
trailing p/e
P/E → price compared with last year's earnings → so what: you are not paying a crazy multiple, but you are also not getting much room for disappointment.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 60 / 100
- long-term debt $2.0B (21% of capital)
- net profit margin 12.4% — keeps 12 cents of every dollar in revenue
- return on equity 12% — $0.12 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in MIDD 3 years ago → it's now worth $11,370.
The index would have given you $13,920.
source: institutional data · total return
What just happened
beat estimates
Middleby beat estimates, but the ugly number was EPS down 64% vs. prior year to $0.74.
Revenue rose 5% to $866 million, and the last reported quarter beat the $2.30 estimate with $2.42 in adjusted EPS. The weird part is the contrast: sales up, margins still healthy, but reported quarterly EPS down hard.
$866M
revenue
$0.74
eps
38.8%
gross margin
the number that mattered
EPS fell 64% vs. prior year. That matters more than the revenue gain because your stock is paid on earnings, not oven shipments.
-
the middleby corporation plans to focus solely on the commercial kitchen industry.management's strategy has been to invest in innovation to increase automation and interconnected systems to fast-food restaurants. this sector will likely provide a greater opportunity than the cyclical residential kitchen and food processing businesses. as software and remote monitoring move to the forefront, middleby's already impressive portfolio of products and real-world implementations should stand out relative to competitors.
-
two transactions will streamline operations.
-
the sale of 51% of the residential kitchen division was announced.
-
the unit contains brand names including viking, komodo joe, and la cornue.
-
middleby will receive cash of $540 million up front and hold a $130 million seller note.the division has been hurt by weak existing home sales and low residential construction in 2025 due to high mortgage rates. in addition, earlier in the year, management announced plans to separate the food processing unit into a standalone company in a tax-free spin-off.
source: company earnings report, 2026
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What could go wrong
the top threat is restaurant and foodservice equipment spending slowing.
med
restaurant equipment demand slows
Middleby sells into commercial kitchens. If restaurant traffic weakens or expansion plans get delayed, equipment orders usually move with it.
Because the snapshot gives no segment diversification, that exposes essentially the full $3.2B revenue base.
med
supply chain or input costs squeeze margin
This is a manufacturing business. Delays in components, freight, or materials would hit production timing and unit economics fast.
The number to protect is the 19.5% operating margin. That is one of the few clear cushions on the page.
med
earnings volatility turns a cheap stock into a deservedly cheap one
Last quarter EPS fell 64% from a year ago. If that becomes a pattern, the market will stop treating 16.5x earnings as an opportunity.
At $150.50, valuation support only works if the earnings base stabilizes.
Middleby's risk picture is simple: a slowdown hits the full $3.2B revenue base, and a margin slip below the current 19.5% would pressure earnings quickly.
source: institutional data · regulatory filings · risk analysis
Pay attention to
earnings
next earnings report in february
You need to see whether the last quarter was a one-off stumble or the start of a weaker earnings run.
metric
operating margin near 19.5%
This is the cleanest proof point on the page. If margin slips, the "cheap" multiple gets much less interesting.
trend
whether revenue growth still translates into EPS growth
Last year revenue grew 11.7%. Last quarter EPS went the other direction. That gap needs to close.
risk
continued institutional selling
172 buyers versus 241 sellers is not a disaster. It is a warning that big holders want more proof.
Analyst rankings
short-term outlook
top 20%
momentum score 2 — analysts expect above-average price performance in the year ahead. in human-speak, they still think the stock can work from here.
risk profile
average
stability score 3 — typical risk profile. not a bunker stock, not a chaos stock.
chart momentum
bottom 5%
technical score 5 — the chart is weak. the market wants better evidence before it pays up.
earnings predictability
70 / 100
better than chaotic, worse than clockwork. you should expect some variance around estimates.
source: institutional data
Institutional activity
172 buyers vs. 241 sellers in 3q2025. total institutional holdings: 52.6M shares.
source: institutional data
Price targets
3-5 year target range
$108
$223
$150
current price
$166
target midpoint · +10% from current · 3-5yr high: $280 (+85% · 17% ann'l return)
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