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The Middleby
(NASDAQ:MIDD)
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Rating:55Neutral
Price Target:
$109.00
▼(-4.36% Downside)
Action:Reiterated
Date:09/10/26
MIDD scores 55 primarily because financial performance is mixed—TTM profitability deterioration and negative returns weigh heavily, while strong free cash flow provides meaningful support. Technicals are a major drag with the stock below all key moving averages and negative momentum. Earnings-call guidance and strategic actions (post-spin focus and exiting a loss-making unit) are supportive, but near-term margin headwinds and a negative P/E keep the overall score restrained.
Positive Factors
Strong cash generation
Robust operating and free cash flow indicates that the installed business continues converting operations into cash despite accounting losses. This supports debt service, reinvestment in product and production initiatives, and financial resilience over the next several quarters.
Negative Factors
Sharp profitability deterioration
The recent shift to operating and net losses materially weakens earnings quality and reduces confidence in near-term profitability. Although gross margin remained around 38%–39%, operating costs and other charges have absorbed gross profit, creating a significant recovery requirement.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Robust operating and free cash flow indicates that the installed business continues converting operations into cash despite accounting losses. This supports debt service, reinvestment in product and production initiatives, and financial resilience over the next several quarters.
Read all positive factors
The Middleby (MIDD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.91B
Dividend YieldN/A
Average Volume (3M)565.08K
Price to Earnings (P/E)―
Beta (1Y)1.10
Revenue Growth-7.22%
EPS Growth-191.27%
CountryUS
Employees8,826
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)-9.27
Shares Outstanding45,222,347
10 Day Avg. Volume433,643
30 Day Avg. Volume565,077
Financial Highlights & Ratios
PEG Ratio0.13
Price to Book (P/B)2.26
Price to Sales (P/S)1.96
P/FCF Ratio11.22
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$153.00Price Target Upside34.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)6.88
Revenue Forecast (FY)$2.51B
The Middleby Business Overview & Revenue Model
Company Description
The Middleby Corporation is a global enterprise specializing in the design, production, marketing, distribution, and servicing of a comprehensive range of equipment for commercial foodservice, industrial food processing, and residential kitchens. ...
How the Company Makes Money
Middleby makes money primarily by selling equipment and related solutions to commercial foodservice operators and food processors through its branded product lines. Its core revenue stream is the sale of new equipment (e.g., ovens, ranges, fryers,...
The Middleby Earnings Call Summary
Earnings Call Date:Aug 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call highlights a successful strategic transformation (completed spin-off and divestiture), strong commercial foodservice growth (8.3% organic in Q2), meaningful shareholder returns ($1.3B repurchased; 16% fewer shares) and solid cash flow and deleveraging progress. At the same time, near-term margin pressures from accelerated inflation, freight, tariffs and investment-related dilution in the ice & beverage platform represent tangible challenges, along with industry softness in QSR traffic and some moderation of growth guidance in the near term. Management outlined operating initiatives and product/production ramps expected to drive sequential margin improvement and to support medium-term targets, indicating confidence in recovery and longer-term upside.Positive Updates
Completed Strategic Transformation and Spin-off
Completed the separation of businesses: sold a controlling stake in the residential kitchen business and completed the spin-off of the food processing business (MDF) on July 6, positioning Middleby as a focused commercial foodservice leader.
Negative Updates
Near-Term Margin Headwinds from Inflation and Freight
Q2 experienced a near 100 basis point total margin headwind driven by accelerated inflationary costs, notably ocean freight and steel surcharges; management expects these margin pressures to persist through the second half of the year.
Read all updates
Q2-2026 Updates
Positive
Negative
Completed Strategic Transformation and Spin-off
Completed the separation of businesses: sold a controlling stake in the residential kitchen business and completed the spin-off of the food processing business (MDF) on July 6, positioning Middleby as a focused commercial foodservice leader.
Read all positive updates
Company Guidance
The company reiterated near‑term and multi‑year targets, guiding third‑quarter post‑spin revenue of $620M–$640M (organic ≈4%), adjusted EBITDA of $143M–$150M and adjusted EPS of $1.67–$1.83 (≈45.2M WG avg shares), and full‑year post‑spin revenue of $2.48B–$2.53B (organic ≈7%), adjusted EBITDA $572M–$588M and adjusted EPS $6.73–$6.89 (≈45.8M WG avg shares); its 3‑year Investor Day targets remain net sales organic growth 3%–6%, adjusted EBITDA growth 6%–9% and adjusted EPS growth 10%–15%. Q2 Commercial Foodservice results and cash metrics underpinning guidance included revenue ≈$631M with organic growth 8.3%, organic adjusted EBITDA margin 25.8%, consolidated adjusted EBITDA ≈$193M, adjusted EPS from continuing ops $2.35 (adjusted EPS ex‑food $1.74 v. $1.40 prior), operating cash flow ≈$100M, free cash flow ≈$89M and leverage 2.4x (pro forma at spin 2.7x; target ~2.5x by year‑end). Management flagged near‑term margin headwinds—~100 bps in Q2, a ~150‑bp drag from ice & beverage ramp (that platform is ~400 bps lower than cooking), and $10M–$15M of incremental inflationary pressure versus prior expectations—partly offset by a $5M tariff refund in Q2 (≈$5M more possible in H2); they expect pricing benefits to start in Q4 and sequential margin improvements in Q3 and Q4 as operating initiatives take hold.The Middleby Financial Statement Overview
Summary
Income Statement
32
Negative
Balance Sheet
56
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.56B | 3.20B | 3.88B | 4.04B | 4.03B | 3.25B |
| Gross Profit | 1.36B | 1.25B | 1.47B | 1.53B | 1.45B | 1.19B |
| EBITDA | -6.36M | 675.10M | 796.72M | 797.35M | 791.45M | 801.90M |
| Net Income | -471.30M | -277.73M | 428.43M | 400.88M | 436.57M | 488.49M |
Balance Sheet | ||||||
| Total Assets | 5.36B | 6.32B | 7.28B | 6.91B | 6.87B | 6.38B |
| Cash, Cash Equivalents and Short-Term Investments | 159.18M | 222.24M | 689.53M | 247.50M | 162.00M | 180.36M |
| Total Debt | 1.98B | 2.17B | 2.52B | 2.54B | 2.83B | 2.44B |
| Total Liabilities | 3.15B | 3.54B | 3.64B | 3.66B | 4.08B | 3.89B |
| Stockholders Equity | 2.21B | 2.78B | 3.64B | 3.25B | 2.80B | 2.49B |
Cash Flow | ||||||
| Free Cash Flow | 495.68M | 558.35M | 637.51M | 541.81M | 263.03M | 371.85M |
| Operating Cash Flow | 530.39M | 630.20M | 686.82M | 628.79M | 332.55M | 423.40M |
| Investing Cash Flow | 475.67M | -126.89M | -158.53M | -155.74M | -348.32M | -1.01B |
| Financing Cash Flow | -1.35B | -970.94M | -73.77M | -390.94M | 7.63M | 502.79M |
The Middleby Technical Analysis
Negative
113.97
Price Trends
126.01
Negative
124.48
Negative
120.83
Negative
Market Momentum
-4.77
Positive
25.60
Positive
11.41
Positive
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 113.97 is above the 20-day moving average (MA) of 113.39, below the 50-day MA of 126.01, and below the 200-day MA of 120.83, indicating a bearish trend. The MACD of -4.77 indicates Positive momentum. The RSI at 25.60 is Positive, neither overbought nor oversold. The STOCH value of 11.41 is Positive, 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 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $76.52B | 23.89 | 101.74% | 2.47% | 4.30% | -3.22% | |
69 Neutral | $3.34B | 31.09 | 14.35% | 0.50% | 12.85% | 85.73% | |
67 Neutral | $26.23B | 22.92 | 15.00% | 1.09% | 7.56% | -49.98% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $6.02B | 30.79 | 4.31% | 0.35% | 45.00% | ― | |
58 Neutral | $4.42B | 23.90 | 60.27% | ― | ― | ― | |
55 Neutral | $4.91B | -11.43 | -18.30% | ― | -7.22% | -191.27% |
* Industrials Sector Average
MIDD
The Middleby
105.94
-5.70
-5.10%
DOV
Dover
191.42
15.13
8.58%
ITW
Illinois Tool Works
263.99
4.19
1.61%
JBTM
JBT Marel
113.93
-25.80
-18.47%
SXI
Standex International
269.88
62.47
30.12%
ALH
Alliance Laundry Holdings, Inc.
21.75
-3.24
-12.97%
The Middleby Corporate Events
Business Operations and StrategyFinancial Disclosures
Middleby to Exit Brewing & Distilling Solutions Group
Positive
Sep 9, 2026
On September 9, 2026, The Middleby Corporation announced it will discontinue its Middleby Brewing Distilling Solutions Group, which includes the Deutsche Beverage + Process, Ss Brewtech and Wild Goose Filling brands, with the wind-down expected t...
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
The Middleby Completes Spin-Off of Midera Food Processing
Positive
Jul 6, 2026
On July 6, 2026, The Middleby Corporation completed the spin-off of its food processing business into Midera Food Processing, Inc., a new publicly traded company on Nasdaq under the ticker MFP, distributed one-for-one to Middleby shareholders as o...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Middleby Prepares Midera Spin-Off with New Credit Facility
Positive
Jun 29, 2026
On June 29, 2026, Middleby announced that Midera Food Processing entered into a five-year, $1.0 billion credit agreement with Bank of America and other lenders, comprising a $750 million U.S. dollar revolving facility and a $250 million multi-curr...
Business Operations and StrategyDelistings and Listing ChangesM&A Transactions
Middleby to Spin Off Midera Food Processing Unit
Positive
Jun 22, 2026
On June 18, 2026, The Middleby Corporation’s board approved the separation of its Midera Food Processing business into an independent, publicly traded company via a pro rata spin-off to shareholders of record as of June 26, 2026. The distrib...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Middleby Advances Midera Spin-Off for Shareholders
Positive
Jun 17, 2026
On June 17, 2026, the U.S. Securities and Exchange Commission declared effective Midera Food Processing, Inc.’s Form 10 registration in connection with its separation from The Middleby Corporation into a new publicly traded company. The Midd...
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.