Middleby (MIDD) Stock Forecast & Price Target

Middleby Corp has demonstrated a significant recovery in revenue, experiencing a notable 29% year-over-year increase in 2024, following a decline of 3% in 2023 and a robust 41% growth in 2022. Furthermore, sales in Canada have surged by 60%, rising from $1.1 billion in 2020 to $1.7 billion in 2024, indicating strong market demand and expansion in that region. Additionally, the company has successfully increased its market share by 135 basis points in 2024, reaching 7.7% compared to 6.4% in the previous year, reflecting effective competitive positioning within its industry.

Middleby Corp's Commercial Foodservice Equipment Group experienced a notable decline in Q2 organic sales of -5.5%, primarily due to decreased demand from its largest chain customers facing lower customer traffic and cost pressures. The performance of these key customers varied, with brands like Pizza Hut and KFC reporting same-store sales declines of -5%, in stark contrast to Taco Bell's 4% increase, highlighting the fragile nature of the segment. The overarching trend of declining traffic among the majority of its premier customers suggests ongoing challenges that may put pressure on Middleby's performance in the near term.