Middleby Has Rocketed Higher On A Much-Improved Foodservice Outlook

Never underestimate the upside potential for a proven growth story with strong fundamentals.

I’ve had my issues with Middleby’s (MIDD) valuation over the years, as well as the company’s reliance on M&A to fuel growth, but the reality is that we’re talking about a company that has generated almost 13% revenue growth over the past decade (from the not-so-tiny starting point of over $850 million) and consistently generates double-digit FCF margins – something not all that many industrials manage to do. On top of that, not only has the foodservice industry held up better than expected during the pandemic, the government has really stepped up in terms of financial support.

All of that has fueled a remarkable 270% trough-to-peak run in the shares. I can’t say that I see Middleby as undervalued now, but that hasn’t held back the shares in years past.

 

Click here for the full article: 

Middleby Has Rocketed Higher On A Much-Improved Foodservice Outlook