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1. Company Snapshot

1.a. Company Description

The Middleby Corporation designs, manufactures, markets, distributes, and services a range of foodservice, food processing, and residential kitchen equipment in the United States, Canada, Asia, Europe, the Middle East, and Latin America.Its Commercial Foodservice Equipment Group segment offers conveyor, combi, convection, baking, proofing, deck, speed cooking, and hydrovection ovens; ranges, fryers, rethermalizers; steam cooking, food warming, catering, induction cooking, and countertop cooking equipment; heated cabinets, charbroilers, ventless cooking systems, kitchen ventilation, toasters, griddles, charcoal grills, professional mixers, stainless steel fabrication, custom millwork, professional refrigerators, blast chillers, cold rooms, ice machines, and freezers; and soft serve ice cream, coffee and beverage dispensing, home and professional craft brewing equipment, fry dispensers, bottle filling and canning equipment, and IoT solutions.The company's Food Processing Equipment Group segment provides batch, baking, proofing, conveyor belt, and continuous processing ovens; frying and automated thermal processing systems; tumblers, massagers, grinders, slicers, reduction and emulsion systems, mixers, formers, and blenders; battering, breading, and seeding equipment; water cutting systems, food presses, food suspension equipment, filling and depositing solutions, and forming equipment; and food safety, food handling, freezing, and defrosting and packaging equipment for customers producing hot dog, dinner sausage, poultry, and lunchmeat, as well as muffin, cookie, and bread products.


Its Residential Kitchen Equipment Group segment offers kitchen equipment comprising cookers, stoves, dishwashers, microwaves, cooktops, wine coolers, ice machines, and ventilation and outdoor equipment.The company was formerly known as Middleby Marshall Oven Company and changed its name to The Middleby Corporation in 1985.The company was founded in 1888 and is based in Elgin, Illinois.

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1.b. Last Insights on MIDD

The Middleby Corporation faces near-term challenges, including weak Quick Service Restaurant (QSR) demand and tariff headwinds expected to persist over the next two quarters. Despite long-term catalysts like a potential Food Processing segment spin-off and a delayed equipment replacement cycle, core Commercial Foodservice organic sales continue to decline. The recent acquisition of Oka-Spezialmaschinenfabrik GmbH & Co. KG expands Middleby's Food Processing equipment innovations, but cost pressures from tariffs are expected to worsen before improving. The Q2 earnings release showed a 1.4% sales dip, with acquisitions offsetting organic declines.

1.c. Company Highlights

2. Middleby Corp's Q3 2025 Earnings: A Strong Performance

Middleby Corp reported a robust third-quarter 2025 performance, with total revenue exceeding the top end of its guidance range at $980 million. Adjusted EBITDA was $196 million, and adjusted EPS was $2.37, surpassing the upper end of its guidance and beating analyst estimates of $2.03. The company's revenue growth was driven by its three business segments, with each meeting or surpassing expectations. The strong EPS performance was positively impacted by $0.15 related to stock compensation.

Publication Date: Nov -07

📋 Highlights
  • Residential Kitchen Impairment Charge:: Noncash accounting adjustment of $709 million recorded, not reflecting operational concerns.
  • Q3 Revenue Surpassing Guidance:: Total revenue reached $980 million, exceeding top end of guidance with all three segments outperforming.
  • Adjusted EBITDA/ EPS Growth:: Adjusted EBITDA hit $196 million, adjusted EPS at $2.37, both above upper guidance thresholds.
  • Spin-Off Progress:: Food Processing spin-off remains on track for Q2 2026 completion, with operational readiness activities ongoing.
  • Future Growth Drivers:: Ice and beverage platform highlighted as key growth areas, alongside automation and IoT advancements.

Segment Performance

The Commercial Foodservice segment delivered 1.6% organic revenue growth, despite challenging market conditions. The company is seeing positive trends in other segments, such as the dealer segment, and emerging chains are a big opportunity for Middleby. According to Timothy FitzGerald, "We're inflecting on spend, with a strong pipeline and orders converting, which puts us in a good position for the first half of 2024." The Food Processing segment is expected to be the strongest in the fourth quarter.

Valuation and Growth Prospects

Middleby's current valuation metrics indicate a relatively attractive price. The P/E Ratio is 14.87, EV/EBITDA is 10.25, and ROE is 11.65%. Analysts estimate revenue growth at 3.7% for next year. The company's strategic review, including the planned spin-off of its Food Processing business, is expected to drive long-term shareholder value. The spin-off is targeted for completion in the second quarter of 2026.

Guidance and Outlook

For the fourth quarter, Middleby expects total company revenue of $990 million to $1,020 million, with adjusted EBITDA of $200 million to $210 million, and adjusted EPS of $2.19 to $2.34. The company will continue to invest in innovative technologies and evaluate strategic alternatives across its portfolio to optimize value creation. With a strong pipeline and improving market dynamics, Middleby is well-positioned for growth in the coming quarters.

3. NewsRoom

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The Middleby Corporation (MIDD) M&A Call Transcript

Dec -04

Source: seekingalpha.com

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26North and The Middleby Corporation Agree to Form $885 Million Partnership for Residential Kitchen, a Leading Collection of Premium Cooking, Refrigeration and Outdoor Living Brands

Dec -04

Source: businesswire.com

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Middleby to Sell 51% Stake in Residential Kitchen Business to 26North in Transaction Valuing the Business at $885 Million

Dec -04

Source: businesswire.com

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Josh Harris's Firm Near Deal for Middleby Unit That Makes Viking Stoves

Dec -04

Source: wsj.com

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American Century Companies Inc. Has $29.94 Million Stock Holdings in The Middleby Corporation $MIDD

Dec -01

Source: defenseworld.net

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The Middleby Corporation (NASDAQ:MIDD) Receives Average Rating of “Hold” from Analysts

Nov -29

Source: defenseworld.net

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The Middleby Corporation $MIDD Shares Sold by Advantage Alpha Capital Partners LP

Nov -28

Source: defenseworld.net

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Clarkston Capital Partners LLC Grows Stock Holdings in The Middleby Corporation $MIDD

Nov -28

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.31%)

6. Segments

Commercial Foodservice

Expected Growth: 3.5%

The 3.5% growth in Commercial Foodservice from The Middleby Corporation is driven by increasing demand for automation and technology in commercial kitchens, rising need for energy-efficient equipment, and growing trend of ghost kitchens and online food delivery. Additionally, Middleby's strategic acquisitions and innovative product offerings have contributed to the segment's growth.

Residential Kitchen

Expected Growth: 2.8%

The 2.8% growth of Residential Kitchen from The Middleby Corporation is driven by increasing consumer spending on home renovations, rising demand for smart and energy-efficient kitchen appliances, and the company's strategic expansion into emerging markets, particularly in Asia and Latin America.

Food Processing

Expected Growth: 3.2%

The Middleby Corporation's 3.2% growth in Food Processing is driven by increasing demand for automated cooking solutions, rising adoption of smart kitchen technologies, and growing need for food safety and sustainability. Additionally, the company's strategic acquisitions and innovative product offerings have expanded its customer base and improved operational efficiency.

7. Detailed Products

Cooking Systems

Commercial cooking equipment for restaurants, hotels, and institutions

Food Processing Equipment

Machinery for food processing, including meat, poultry, and seafood processing

Beverage Solutions

Equipment for brewing, dispensing, and serving beverages

Pumping and Material Handling

Pumps, valves, and material handling systems for food processing and manufacturing

Automation and Robotics

Automated systems for food processing, packaging, and material handling

Commercial Dishwashing

Commercial dishwashing machines and accessories

8. The Middleby Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for The Middleby Corporation is medium due to the presence of alternative cooking solutions, but the company's strong brand reputation and product offerings mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for The Middleby Corporation due to the company's strong relationships with its customers and the customized nature of its products.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for The Middleby Corporation due to the presence of multiple suppliers, but the company's large scale of operations and strong relationships with suppliers mitigate this threat.

Threat Of New Entrants

The threat of new entrants is low for The Middleby Corporation due to the high barriers to entry in the commercial cooking equipment industry, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high for The Middleby Corporation due to the presence of several established competitors in the commercial cooking equipment industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 43.00%
Debt Cost 7.78%
Equity Weight 57.00%
Equity Cost 11.85%
WACC 10.10%
Leverage 75.44%

11. Quality Control: The Middleby Corporation passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

126.27$

Current Price

126.27$

Potential

-0.00%

Expected Cash-Flows