Middleby Stock Drops 12.3% After First Post-Spin-Off Earnings Report

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Summary · why it matters

Middleby shares sank 12.3% this week after the company reported its first earnings since spinning off its food processing unit into Midera Food Processing on July 6. Management now sees foodservice sales growing between 6% and 8% this year, and its earnings per share guidance implies a price-to-earnings ratio of under 17.5. That valuation compares favorably to large restaurant chains including Yum! Brands and McDonald's. The drop looks like a great chance for investors to own Middleby, which has become a pure-play commercial foodservice business and a leader with large global restaurant chains and retailers as customers.

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Middleby Corp
MIDD
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First post-spin-off earnings report led to 12.3% stock drop.

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