The Middleby Corporation is a global enterprise specializing in the design, production, marketing, distribution, and servicing of a comprehensive range of equipment ...
The Middleby Corporation, founded in 1888 as the Middleby Marshall Oven Company and renamed in 1985, is a global enterprise headquartered in Elgin, Illinois. It operates through three primary divisions: Commercial Foodservice Equipment Group, Food Processing Equipment Group, and Residential Kitchen Equipment Group. The Commercial Foodservice division offers a vast ...The Middleby Corporation, founded in 1888 as the Middleby Marshall Oven Company and renamed in 1985, is a global enterprise headquartered in Elgin, Illinois. It operates through three primary divisions: Commercial Foodservice Equipment Group, Food Processing Equipment Group, and Residential Kitchen Equipment Group. The Commercial Foodservice division offers a vast array of professional kitchen equipment including ovens (conveyor, combi, convection, speed cooking), cooking appliances (ranges, fryers, rethermalizers, steam and induction units), warming and catering equipment, ventilation systems, refrigerators, ice machines, and beverage dispensing solutions. The Food Processing division provides industrial-scale machinery for baking, frying, thermal processing, grinding, slicing, mixing, forming, and packaging, serving manufacturers of products like hot dogs, poultry, and baked goods. The Residential division focuses on high-end home appliances such as cookers, stoves, dishwashers, microwaves, wine coolers, and outdoor kitchen equipment. Middleby is known for its innovation, with 70 highly-respected brands, and emphasizes advanced cooking, beverage, and refrigeration solutions. As of the latest data, the company has approximately 8,826 full-time employees, with a market cap of $6.08 billion. Its CEO is Timothy FitzGerald, who has been in the role since February 2019. The company went public in 1983 and is listed on NASDAQ. Financially, it has a revenue of around $2.72 billion (2018), with a gross profit margin of 38%, but recently reported negative net income (TTM), indicating challenges. It also has a significant debt load. Middleby aims to provide customers with the most advanced solutions in the industry, leveraging IoT and automation, while maintaining a strong global presence across the US, Canada, Asia, Europe, the Middle East, and Latin America.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$3.2B
-17.4%
+4.2%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$-277.7M
-164.8%
+209.5%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+39.1%
+3.1%
-0.5%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+18.4%
+8.6%
+5.1%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
-8.7%
-178.5%
+205.0%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$558.4M
-12.4%
+50.9%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+17.4%
+6.0%
+44.8%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
78.3%
+13.0%
+12.2%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
2.57x
-8.6%
+1.1%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Operator: Good day, and welcome to the Middleby Corporation's Second Quarter 26 Earnings Conference Call. All participants will be in listen only mode. On today's call are Timothy J. FitzGerald, CEO and Brittany Cerwin, CFO. After today's presentation, there will be an opportunity to ask questions. Please note, this event is being recorded. I would now like to turn the conference over to Timothy J. FitzGerald. Please go ahead.
Timothy J. FitzGerald: Good morning, and thank you for joining today's call. Darcy last year, we set out to separate our 3 leading foodservice into independent companies. To best position each business for long-term growth, and to unlock value for all of our shareholders. We completed the first step in Q1 of this year. Selling a controlling stake in the residential kitchen business to 26 North. And on July 6th, we completed the spin off of our food processing business, launching MDF as a separately publicly traded company. MDF now as a standalone business is extremely well positioned as a best in class leader in the growing food processing equipment industry. We are confident that business and the MDF team have a very bright future ahead. With that, the transformation is complete. I am proud of how our teams work together and in the execution. Is a significant milestone and achievement in the history of our company. In parallel with our business transformation, we returned $1.3 billion to shareholders through repurchases. Including $200 million in the second quarter reducing our outstanding share count by 16% over the past 6 quarters. We are very pleased with the strategic allocation of capital that we believe has delivered substantial value to our shareholders during a pivotal time. We are now embarking on a new, exciting chapter for Middleby. Middleby now moves forward as a focused solutions provider and as the innovation leader in commercial food service. We are extremely well positioned with our leading brands best in class innovations and momentum in equipment categories that deliver the highest ROI for our customers. The strategic investments we have made in our business are gaining traction, and we are seeing the benefits in our top line. We continue to set the pace in the industry. Bringing next generation solutions that have practical application and meaningful impact to our customers. Our go-to-market strategy that has been underway for the past several years has put us closer to our customers than ever before. And we are viewed as a strategic partner. Our more recent investments in our operations are at early stages but are starting to take hold. And we are confident these initiatives will drive margin expansion and operational excellence over the next several years. Taken together, these investments are what underpin the 3-year targets we have laid out at our Investor Day in May. Net sales organic growth of 3% to 6% adjusted EBITDA growth of 6% to 9%, and adjusted EPS growth of 10% to 15%. We are confident in …