Scribd Logo
Upload

Welcome to Scribd!

  • Middleby

    Uploaded by

    Darryl Grossauer
    21 views1 page
    Middleby is a global leader in commercial kitchen equipment, with a 20% market share in the US. It produces products like pizza ovens and has created fully automated cooking solutions that can prepare multiple foods in only 7 minutes. Middleby has integrated its equipment into franchise kitchens like Dominos, making it difficult for competitors to replace. The company reinvests in research and development to further automate food preparation and reduce waste and water usage in commercial kitchens. While short term growth may be difficult to sustain at 15% annually, steady growth and reinvestment in innovation should increase Middleby's value over the long run.

    Original Description:

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Middleby is a global leader in commercial kitchen equipment, with a 20% market share in the US. It produces products like pizza ovens and has created fully automated cooking solutions that can prepare multiple foods in only 7 minutes. Middleby has integrated its equipment into franchise kitchens like Dominos, making it difficult for competitors to replace. The company reinvests in research and development to further automate food preparation and reduce waste and water usage in commercial kitchens. While short term growth may be difficult to sustain at 15% annually, steady growth and reinvestment in innovation should increase Middleby's value over the long run.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    21 views1 page

    Middleby

    Uploaded by

    Darryl Grossauer
    Middleby is a global leader in commercial kitchen equipment, with a 20% market share in the US. It produces products like pizza ovens and has created fully automated cooking solutions that can prepare multiple foods in only 7 minutes. Middleby has integrated its equipment into franchise kitchens like Dominos, making it difficult for competitors to replace. The company reinvests in research and development to further automate food preparation and reduce waste and water usage in commercial kitchens. While short term growth may be difficult to sustain at 15% annually, steady growth and reinvestment in innovation should increase Middleby's value over the long run.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Middleby (MIDD)

    RADAR – 3 circles

    UNDERSTAND -- Commercial kitchen eq, residential. Pizza ovens. 20% share in US, global leader.
    Sustainability. Fully automated process. Can do fish, chicken, steak in 7 minutes automated. Created a
    waterless steamer into Red Lobster allowing them to save 450M gallons of water per year. Food waste,
    waste mgmt. Buy it and forget it. Stock dropped then rose to all time high.

    MOAT Switch, integrated into franchises like Dominos hard to replace. Secret, makes own brands\

    Management 17 years, $4.5M fair

    ROE 20

    ROIC 13

    DEBT 2.5 years is good debt for R&D to automate workforce. Minimum usage.

    FGR 15% analysis was 20% competitive

    Sticker 381 Price 134 MOS

    LOVE – Pizza

    EVENT – Bought Viking stock dropped. Trump effect on currency exchange for global sales.

    GR is too high 5-8% is more likely for 10-15 years industry can’t support 15%

    Steady growth will make it worth more in future

    Adding debt, concern about paying for it.

    Spending R&D money. Pizza is unhealthy.

    You might also like