The Middleby Corp (MIDD)
NASDAQ:MIDD
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The Middleby
(NASDAQ:MIDD)
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Rating:53Neutral
Price Target:
$135.00
▼(-6.32% Downside)
Action:ReiteratedDate:04/01/26
The score is held back primarily by weakened recent fundamentals (revenue drop and net loss) and bearish technicals (below key moving averages with negative MACD). Offsetting factors include constructive FY2026 guidance, strong cash generation and backlog momentum discussed on the earnings call, and strategic actions (spin-off planning and aggressive buybacks), though tariffs, higher interest expense, and spin-cost uncertainty limit upside.
Positive Factors
Spin leadership finalized
Finalizing the Food Processing executive team (CFO appointment plus prior CEO naming) materially reduces execution risk for the Q2 2026 spin. Independent leadership enables dedicated capital allocation, clearer strategy, and faster M&A or product investment decisions that support multi‑year growth.
Negative Factors
Recent profit deterioration
A sharp revenue decline and swing to a meaningful net loss erode return on equity and indicate earnings volatility. If this deterioration persists it can impair reinvestment capacity, weaken investor confidence, and increase the sensitivity of the business to cyclical demand shifts.
Read all positive and negative factors
Positive Factors
Negative Factors
Spin leadership finalized
Finalizing the Food Processing executive team (CFO appointment plus prior CEO naming) materially reduces execution risk for the Q2 2026 spin. Independent leadership enables dedicated capital allocation, clearer strategy, and faster M&A or product investment decisions that support multi‑year growth.
Read all positive factors
The Middleby (MIDD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.65B
Dividend YieldN/A
Average Volume (3M)514.67K
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth-3.67%
EPS Growth-171.21%
CountryUS
Employees10,616
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)2.14
Shares Outstanding46,621,840
10 Day Avg. Volume584,735
30 Day Avg. Volume514,668
Financial Highlights & Ratios
PEG Ratio0.17
Price to Book (P/B)2.81
Price to Sales (P/S)2.43
P/FCF Ratio13.95
Enterprise Value/Market Cap1.29
Enterprise Value/Revenue2.29
Enterprise Value/Gross Profit6.05
Enterprise Value/Ebitda865.02
Forecast
1Y Price Target
$183.83Price Target Upside27.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)9.3
Revenue Forecast (FY)$3.32B
The Middleby Business Overview & Revenue Model
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 Comme...
How the Company Makes Money
Middleby makes money primarily by selling equipment and related solutions across three main end-markets: (1) Commercial Foodservice: revenue is generated from the sale of restaurant and institutional kitchen equipment (e.g., ovens, fryers, grills,...
The Middleby Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 13, 2026
Earnings Call Sentiment Positive
The call communicated several transformative, shareholder‑friendly actions and solid operational results: a value‑accretive sale of the Residential business with retained upside, aggressive buybacks reducing shares by ~9%, Q4 revenue and EBITDA beats, strong Food Processing order momentum and a clear plan to spin the segments into focused public companies. Offsetting these positives are persistent tariff headwinds (Q4 EBITDA impact ~$7M), continued weakness and capital‑spend deferrals among large QSRs, higher interest expense from debt maturities (~$6M/quarter), and some near‑term timing risks on backlog conversion and undisclosed spin costs. Overall, the tone is constructive with execution and capital allocation emphasized, but tempered by near‑term margin and timing pressures.Positive Updates
Residential Kitchen Transaction — Large Cash Proceeds and Retained Upside
Completed sale of a 51% stake in Residential Kitchen at an $885M enterprise valuation, delivering approximately $565M in immediate cash proceeds (subject to adjustments) while retaining a 49% ownership stake and a $135M senior note; Residential treated as discontinued operations going forward.
Negative Updates
Tariff Headwinds and Margin Timing Issues
Tariffs negatively impacted Q4 (~$7M adverse EBITDA impact reported) and are expected to cause margin dilution in H1 2026; management expects pricing and operational actions to offset tariff costs over 2026 but timing of price realization creates near‑term drag. Management indicated ~2/3 to 70% of the incremental tariff impact falls on Commercial Foodservice.
Read all updates
Q4-2025 Updates
Positive
Negative
Residential Kitchen Transaction — Large Cash Proceeds and Retained Upside
Completed sale of a 51% stake in Residential Kitchen at an $885M enterprise valuation, delivering approximately $565M in immediate cash proceeds (subject to adjustments) while retaining a 49% ownership stake and a $135M senior note; Residential treated as discontinued operations going forward.
Read all positive updates
Company Guidance
Management guided Q1 revenue of $760–$788M (Commercial Foodservice $560–$578M; Food Processing $200–$210M), Q1 adjusted EBITDA of $161–$173M (CFS $142–$152M; FP $37–$41M) and Q1 adjusted EPS of $1.90–$2.02 on ~47.7M weighted average shares; full‑year 2026 guidance is revenue $3.27–$3.36B (CFS $2.37–$2.43B; FP $895–$925M), adjusted EBITDA $745–$780M (CFS $632–$658M; FP $186–$208M) and adjusted EPS $9.20–$9.36. Management said the guidance is on a current‑company basis (spin expected by end of Q2) and doesn’t include one‑time spin or stand‑alone costs; they expect pricing and operational actions to offset tariffs in 2026 despite first‑half dilution (Q4 tariff drag ≈$7M) and noted a higher interest expense (~$6M/quarter, ~$0.12 Q4 headwind, ~$0.34 FY2026). Recent traction and cash metrics cited: Q4 revenue for the two continuing segments ≈$866M with adjusted EBITDA ≈$197M and adj. EPS $2.14 (FY2025 adj. EPS $8.39), Q4 orders for Food Processing $322M and backlog $410M, Q4 operating cash flow ≈$178M and free cash flow ≈$165M, year‑end leverage 2.5x. Capital allocation remains aggressive: 2025 repurchases of $710M (4.9M shares, avg ~$144.50, ~9% share count reduction), additional ~1.7M shares for ~$250M (avg ~$154) to start 2026 and an expected ~$300M of repurchases in Q1.The Middleby Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
62
Positive
Cash Flow
58
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.20B | 3.88B | 4.04B | 4.03B | 3.25B |
| Gross Profit | 1.25B | 1.47B | 1.53B | 1.45B | 1.19B |
| EBITDA | 675.10M | 796.72M | 797.35M | 791.45M | 801.90M |
| Net Income | -277.73M | 428.43M | 400.88M | 436.57M | 488.49M |
Balance Sheet | |||||
| Total Assets | 6.32B | 7.28B | 6.91B | 6.87B | 6.38B |
| Cash, Cash Equivalents and Short-Term Investments | 222.24M | 689.53M | 247.50M | 162.00M | 180.36M |
| Total Debt | 2.17B | 2.52B | 2.54B | 2.83B | 2.44B |
| Total Liabilities | 3.54B | 3.64B | 3.66B | 4.08B | 3.89B |
| Stockholders Equity | 2.78B | 3.64B | 3.25B | 2.80B | 2.49B |
Cash Flow | |||||
| Free Cash Flow | 558.35M | 637.51M | 541.81M | 263.03M | 371.85M |
| Operating Cash Flow | 630.20M | 686.82M | 628.79M | 332.55M | 423.40M |
| Investing Cash Flow | -126.89M | -158.53M | -155.74M | -348.32M | -1.01B |
| Financing Cash Flow | -970.94M | -73.77M | -390.94M | 7.63M | 502.79M |
The Middleby Technical Analysis
Positive
144.10
Price Trends
148.79
Negative
145.99
Negative
140.32
Positive
Market Momentum
-1.02
Negative
54.09
Neutral
62.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MIDD, the sentiment is Positive. The current price of 144.1 is above the 20-day moving average (MA) of 137.22, below the 50-day MA of 148.79, and above the 200-day MA of 140.32, indicating a neutral trend. The MACD of -1.02 indicates Negative momentum. The RSI at 54.09 is Neutral, neither overbought nor oversold. The STOCH value of 62.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MIDD.
The Middleby Risk Analysis
The Middleby disclosed 32 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
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $11.16B | 30.59 | 13.29% | ― | 14.17% | 17.09% | |
72 Outperform | $11.24B | 26.05 | 15.81% | 1.17% | 3.76% | 22.94% | |
71 Outperform | $6.19B | 111.03 | 2.69% | 0.56% | 9.02% | -34.29% | |
69 Neutral | $6.48B | 22.36 | 7.69% | ― | 1.03% | 30.59% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | $4.82B | -334.43 | 1.73% | ― | 7.50% | ― | |
53 Neutral | $6.65B | -28.04 | -8.50% | ― | -3.67% | -171.21% |
* Industrials Sector Average
MIDD
The Middleby
141.86
9.08
6.84%
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The Middleby Corporate Events
Business Operations and StrategyExecutive/Board Changes
Middleby Finalizes Leadership for Planned Food Processing Spin-Off
Positive
Apr 1, 2026
On April 1, 2026, The Middleby Corporation announced that Amy Campbell will serve as Chief Financial Officer of its Food Processing business once it is spun off as an independent public company in the second quarter of 2026. The appointment, effec...
Business Operations and StrategyExecutive/Board Changes
Middleby Adds Veteran Executive Glenn Eisenberg to Board
Positive
Mar 6, 2026
On March 5, 2026, Middleby’s board amended and restated its bylaws to raise the maximum board size from 11 to 13 directors and to update officer titles and executive officer positions. This governance move, effective immediately, expands the...
Business Operations and StrategyM&A Transactions
Middleby Plans Spin-Off of Food Processing Business
Positive
Mar 5, 2026
On March 5, 2026, The Middleby Corporation released an investor presentation detailing its planned spin-off of its food processing business into a standalone public company, as part of a broader portfolio transformation. The move is designed to cr...
Business Operations and StrategyExecutive/Board Changes
Middleby Sets Leadership for Food Processing Spin-Off
Positive
Feb 26, 2026
On February 26, 2026, The Middleby Corporation announced leadership appointments for its planned spin-off of the Food Processing business into an independent public company expected to be completed in the second quarter of 2026. Mark Salman, curre...
Business Operations and StrategyStock BuybackM&A Transactions
Middleby Finalizes Residential Kitchen Stake Sale, Refocuses Strategy
Positive
Feb 2, 2026
On February 2, 2026, The Middleby Corporation completed the sale of a 51% stake in its Residential Kitchen business to an affiliate of 26North Partners, forming a standalone joint venture in which Middleby retains a 49% non‑controlling inter...
Business Operations and StrategyExecutive/Board Changes
Middleby Extends Cooperation Agreement with Garden Investment
Positive
Jan 6, 2026
On January 6, 2026, The Middleby Corporation amended its existing cooperation agreement with Garden Investment Management, extending the arrangement for an additional year. Under the revised terms, Middleby will again nominate Ed Garden for electi...
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.