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The Middleby Corp (MIDD)
NASDAQ:MIDD
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The Middleby
(NASDAQ:MIDD)
Rating:65Neutral
Price Target:
$127.00
▼(-2.61% Downside)
Positive Factors
Innovations and Technology
Management is most excited about innovations in beverage and dispense, highlighting Newton’s patented CFV technology which offers accurate and cost-effective flow, pressure, and ratio control for applications across several industries.
Share Repurchase Program
Middleby Corporation will accelerate its share repurchase program, expecting to deploy most of its free cash flow to share buybacks.
Strategic Positioning
The company believes it is well positioned relative to competitors despite the tariff whipsaw.
Negative Factors
Commercial Foodservice Challenges
Weak traffic has not been accelerating restaurant investments in automation due to cash flow tensions.
Macroeconomic Uncertainty
Heightened macroeconomic uncertainty has seemingly pushed out previous expectations for organic growth.
Tariff Impact
Middleby still estimates the incremental tariff cost impact will be approximately $150 million on an annualized basis.
The Middleby (MIDD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.72B
Dividend YieldN/A
Average Volume (3M)1.08M
Price to Earnings (P/E)16.6
Beta (1Y)1.04
Revenue Growth-1.70%
EPS Growth10.24%
CountryUS
Employees10,616
SectorIndustrials
Sector Strength82
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)2.35
Shares Outstanding50,682,384
10 Day Avg. Volume1,652,734
30 Day Avg. Volume1,081,151
Financial Highlights & Ratios
PEG Ratio2.62
Price to Book (P/B)2.02
Price to Sales (P/S)1.89
P/FCF Ratio11.51
Enterprise Value/Market Cap1.43
Enterprise Value/Revenue2.49
Enterprise Value/Gross Profit6.60
Enterprise Value/Ebitda11.87
Forecast
1Y Price Target
$153.50Price Target Upside17.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
The Middleby Business Overview & Revenue Model
Company DescriptionThe Middleby Corporation (MIDD) is a global leader in commercial cooking and food processing equipment, serving a diverse range of sectors including restaurants, foodservice, and industrial food production. The company specializes in manufacturing innovative cooking solutions such as ovens, fryers, and refrigeration systems, as well as food preparation and processing equipment. Middleby operates through various brands and subsidiaries, providing state-of-the-art technology designed to enhance efficiency and performance in food preparation and cooking.
How the Company Makes MoneyMiddleby generates revenue primarily through the sale of its commercial cooking and food processing equipment. The company's key revenue streams include direct sales of equipment to restaurants, food manufacturers, and other commercial food service operations. Additionally, Middleby earns recurring revenue through the sale of parts, service contracts, and aftermarket support for its products. Strategic partnerships with leading foodservice brands and distributors further enhance its market presence and drive sales. The company also benefits from a strong focus on innovation, enabling it to introduce new products that meet changing consumer demands and maintain competitive advantage.
The Middleby Earnings Call Summary
Earnings Call Date:Aug 06, 2025
(Q2-2025)
| % Change Since: -9.89%|
Next Earnings Date:Mar 03, 2026
Earnings Call Sentiment Neutral
The earnings call highlights notable achievements in sequential revenue improvements, strong EBITDA margins, and successful share repurchases, underpinned by strategic investments in innovation and new market segments. However, significant challenges remain, particularly due to tariff impacts, pressures from large QSR customers, and deferred orders affecting growth. The sentiment reflects a cautiously optimistic outlook offset by current economic and market challenges.Q2-2025 Updates
Positive Updates
Sequential Revenue Improvements
The company experienced sequential revenue improvements across all three segments, with a significant step-up in food processing revenues compared to the first quarter.
Strong EBITDA Margins
Commercial Foodservice delivered over $580 million in revenue with a strong 27% EBITDA margin. Residential and Food Processing segments also reported EBITDA margins exceeding 10% and 21% respectively.
Successful Share Repurchases
During Q2, the company repurchased over 2.2 million shares for nearly $323 million, with further purchases in July amounting to $97 million for over 650,000 shares.
Innovation and Product Development
Middleby introduced more new products and innovations in the past 3 years than at any other time in its history, receiving 24 individual innovation awards in 18 months.
Growth in New Market Segments
The company's entry into the ice and beverage product categories is highlighted as a transformational growth opportunity with significant potential.
Negative Updates
Impact of Tariffs
Tariffs have had a significant negative impact, particularly on the residential outdoor business, with an estimated annualized cost impact of approximately $150 million.
Challenges with Large QSR Customers
The company faces pressure from large QSR customers due to decreased traffic, cost pressures, and revised down new store openings, affecting revenue growth.
Deferred and Reduced Orders
Order conversion has been slow, driven by tariff uncertainties and food costs, impacting the timing of orders, especially for larger projects.
Residential Outdoor Segment Challenges
The Residential Outdoor segment is significantly impacted by tariff-related pressures, causing channel partners to reduce inventories.
Company Guidance
During the Middleby Corporation's Second Quarter 2025 Earnings Conference Call, the company provided detailed guidance metrics for the upcoming periods. For Q3, Middleby anticipates total revenue between $950 million and $975 million, with Commercial Foodservice expected to contribute $580 million to $590 million, Residential Kitchen $170 million to $180 million, and Food Processing $195 million to $205 million. Adjusted EBITDA is forecasted to be in the range of $185 million to $195 million, while adjusted EPS is projected to be between $2.04 and $2.19. The full year 2025 guidance projects total revenue between $3.81 billion and $3.87 billion, adjusted EBITDA of $770 million to $800 million, and adjusted EPS of $8.65 to $9.05. The company also highlighted a $150 million annualized impact from tariffs, with a net negative impact to Q3 EBITDA estimated between $10 million and $15 million, expected to reduce to $5 million to $10 million in Q4 as pricing actions take hold. Additionally, Middleby reported Q2 free cash flow of $101 million and a leverage ratio of 2.3x, while mentioning plans to pay off convertible notes with a combination of cash and revolving bank facility, which will increase interest expenses in the latter half of the year.The Middleby Financial Statement Overview
Summary
The Middleby demonstrates strong operational efficiency with consistent profitability and robust cash flow management. However, stagnant revenue growth and potential risks from leverage require careful monitoring.Income Statement
The Middleby has shown consistent profitability with strong gross profit margins and stable net profit margins in recent years. Despite a slight decrease in revenue, the EBIT and EBITDA margins remain robust, indicating operational efficiency. However, the revenue growth rate has been stagnant, which could be a concern for future expansion.75
Positive
Balance Sheet
The company maintains a reasonable debt-to-equity ratio, reflecting balanced leverage. A stable return on equity demonstrates effective use of shareholders’ funds. However, the equity ratio indicates that liabilities still form a significant portion of the company’s financing, which could be risky during economic downturns.70
Positive
Cash Flow
The Middleby exhibits strong cash flow management with a healthy operating cash flow to net income ratio and consistent free cash flow generation. The free cash flow growth rate shows positive trends, which supports future investment and debt repayment. Nevertheless, the slight fluctuation in free cash flow growth indicates potential volatility.80
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.85B | 3.88B | 4.04B | 4.03B | 3.25B | 2.51B |
| Gross Profit | 1.45B | 1.47B | 1.53B | 1.45B | 1.19B | 882.05M |
| EBITDA | 808.13M | 796.72M | 797.35M | 780.39M | 776.67M | 439.25M |
| Net Income | 434.22M | 428.43M | 400.88M | 436.57M | 488.49M | 207.29M |
Balance Sheet | ||||||
| Total Assets | 7.40B | 7.28B | 6.91B | 6.87B | 6.38B | 5.20B |
| Cash, Cash Equivalents and Short-Term Investments | 745.14M | 689.53M | 247.50M | 162.00M | 180.36M | 268.10M |
| Total Debt | 2.41B | 2.52B | 2.54B | 2.83B | 2.51B | 1.83B |
| Total Liabilities | 3.67B | 3.64B | 3.66B | 4.08B | 3.89B | 3.23B |
| Stockholders Equity | 3.73B | 3.64B | 3.25B | 2.80B | 2.49B | 1.98B |
Cash Flow | ||||||
| Free Cash Flow | 617.83M | 637.51M | 541.81M | 263.03M | 371.85M | 482.88M |
| Operating Cash Flow | 687.05M | 686.82M | 628.79M | 332.55M | 423.40M | 524.78M |
| Investing Cash Flow | -177.28M | -158.53M | -155.74M | -348.32M | -1.01B | -106.76M |
| Financing Cash Flow | -102.30M | -73.77M | -390.94M | 7.63M | 502.79M | -252.47M |
The Middleby Technical Analysis
Negative
130.40
Price Trends
141.80
Negative
141.17
Negative
145.23
Negative
Market Momentum
-3.77
Negative
43.01
Neutral
58.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MIDD, the sentiment is Negative. The current price of 130.4 is below the 20-day moving average (MA) of 135.97, below the 50-day MA of 141.80, and below the 200-day MA of 145.23, indicating a bearish trend. The MACD of -3.77 indicates Negative momentum. The RSI at 43.01 is Neutral, neither overbought nor oversold. The STOCH value of 58.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MIDD.
The Middleby Risk Analysis
The Middleby disclosed 34 risk factors in its most recent earnings report. The Middleby reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
The Middleby Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $9.28B | 29.92 | 17.75% | 0.66% | 2.96% | 12.62% | |
78 Outperform | $8.79B | 41.63 | 15.02% | ― | 8.90% | 29.18% | |
72 Outperform | $11.05B | 36.22 | 18.23% | 0.46% | 3.01% | 27.13% | |
71 Outperform | $11.68B | 31.50 | 14.59% | ― | 9.69% | 54.29% | |
65 Neutral | $6.72B | 16.58 | 12.06% | ― | -1.70% | 10.24% | |
63 Neutral | $10.76B | 16.24 | 6.80% | 2.07% | 2.60% | -16.34% | |
62 Neutral | $9.73B | 38.99 | 3.84% | 0.97% | -7.88% | ― |
* Industrials Sector Average
Performance Comparison
MIDD
The Middleby
130.40
-9.15
-6.56%
GNRC
Generac Holdings
189.65
39.34
26.17%
RRX
Regal Rexnord
144.87
-13.70
-8.64%
SPXC
SPX
186.26
32.49
21.13%
WTS
Watts Water Technologies
276.26
91.21
49.29%
CR
Crane Company
188.70
38.64
25.75%
The Middleby Corporate Events
Shareholder MeetingsBusiness Operations and Strategy
The Middleby Holds Annual Stockholders Meeting
Neutral
May 16, 2025
On May 14, 2025, The Middleby Corporation held its Annual Meeting of Stockholders where several key proposals were voted on. All ten nominees for the Board of Directors were elected to serve until the 2026 meeting. Additionally, the advisory vote on executive compensation was approved, and Ernst & Young LLP was ratified as the independent public accountants for the fiscal year ending January 3, 2026. These decisions reflect the company’s ongoing governance and operational strategies, potentially impacting its market positioning and stakeholder confidence.
The most recent analyst rating on (MIDD) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on The Middleby stock, see the MIDD Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.