$44.73
-0.53 (-1.17%)
The Middleby Corp (MIDD)
CAPS Rating:
The Company designs, manufactures, markets, distributes and services of a line of cooking equipment and related products used in all types of commercial restaurants, institutional kitchens, and food processing operations.
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Almost all of the fundamentals of this stock now are the same as they have been Growth in revenue, cash flow, etc.There are a couple risks - including those that were highlighted in 2005 by HiddenGems: debt, customer mix, the economy. MIDD took on a ton of extra debt to make the TurboChef purchase, and I think it's arguable that it was not a proper time to take on that much debt. On the other hand, it's easy to argue that it was a smart move by management - taking on the debt to buy OVEN at a really good price.Based on all of MIDD's past acquisitions, I don't have any reason to believe they won't be successful with this one.That still leaves the general economy. Lowered commodity costs should be good for the company, and it sounds like their focus on cost-efficient, energy-efficient products for quick- and fast-food chains will probably help them weather the downturn.