Middleby reported strong results for second-quarter 2014, with
earnings of $0.85 per share versus $0.67 earned in the year-ago
quarter. Quarterly revenues rose 17% year over year to $424.8
million, driven by organic as well as inorganic growth. The
acquisition of Viking along with Celfrost, Wunder-Bar, Market Forge
and Processing Equipment Solutions are proving beneficial to the
company. Moreover, Middleby is also increasing its market share
through organic growth, with strength across all segments. However,
Middleby's overseas operations expose it to various risks including
social, political and those related to foreign exchange
transactions. Additionally, Middleby's overdependence on food
processing units is a cause of concern. The volatility of raw
material prices also impacts the company's strategies. Based on
these factors, we prefer to have a balanced view on the stock and
maintain our Neutral recommendation.
Elgin, IL-based The Middleby Corporation (MIDD) provides
cooking, warming, food preparation and packaging equipment to
commercial, industrial processing and residential markets. Formerly
known as Oven Company, it was acquired by TMC Industries Ltd. in
1983. Post the acquisition, the company's name was changed to
Middleby Corporation in 1985. The company operates in three main
Commercial Foodservice Equipment Group: This segment
manufactures cooking equipment for restaurants and institutional
kitchens. The products include conveyor ovens, proofing ovens,
speed cooking ovens and induction cooking equipment. The equipment
in this segment are sold under brands like Combi , Lang , MPC ,
PrefectFry , CookTek , Southbend and Wells .
Food Processing Equipment Group: This segment manufactures
equipment for the food processing industry. It offers a variety of
products including batch ovens, processing ovens, defrosting and
packaging equipment among others. The products are sold under
various brands such as Auto-Bake , Alkar , Cozzini and RapidPak
Residential Kitchen Equipment Group: This segment manufactures
equipment for the residential market, recording the revenues for
Viking and Brigade. It offers ovens, dishwashers, cooktops,
microwaves and other outdoor equipment.
This segment was formed after the company acquired Viking range
in December last year.
The Middleby Corporation (MIDD): Read the Full
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
MIDDLEBY CORP (MIDD): Free Stock Analysis
To read this article on Zacks.com click here.