MIDD

Middleby Corp

Industrial/Transportation


Presented:09/27/2017
Price:$127.39
Cap:$7.30B
Current Price:$137.83
Cap:$7.41B

Presented

Date09/27/2017
Price$127.39
Market Cap$7.30B
Ent Value$7.70B
P/E Ratio23.9x
Book Value$24.78
Div Yield0%
Shares O/S57.30M
Ave Daily Vol496,585
Short Int5.31%

Current

Price$137.83
Market Cap$7.41B
Middleby Corp. design, manufactures, markets, distributes, and service of commercial foodservices and food processing equipment. The company provides foodservice equipment used in all types of commercial restaurants and institutional kitchens, food preparation, cooking, baking, chilling and packaging equipment for food processing operations and premium kitchen equipment including ranges, ovens, refrigerators, ventilation and dishwashers primarily used in the residential market. It operates through the following segments: Commercial Foodservice Equipment Group, Food Processing Equipment Group and Residential Kitchen Equipment Group. The Commercial Foodservice Equipment Group segment manufactures, sells, and distributes cooking equipment to restaurants, convenience stores, retail outlets, hotels, and other institutions. The Food Processing Equipment Group segment offers processing solutions for customers that produce pre-cooked meat products and baked goods. The Residential Kitchen Equipment Group segment manufactures, sells and distributes kitchen equipment for the residential market. Middleby was founded in 1888 and is headquartered in Elgin, IL.

Publicly traded companies mentioned herein: Middleby Corp (MIDD), Welbilt Inc (WBT)

Highlights

The presenter is short shares of Middleby (MIDD), a supplier of kitchen equipment to restaurants, on the thesis of industry overcapacity and a shift toward restaurant franchising, coupled with a slowdown in restaurant growth over the next few years. By the presenter’s model, company and sell side forecasts of ~4% annual growth are unrealistic; instead, he thinks MIDD is set to see 1% - 2% growth with flat margins. He models $5.40 - $5.50 in 2018 earnings, noting the thesis will likely start to play out in early November when MIDD reports earnings.

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Idea Discussion

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