בס״ד

Let Them Eat Vaccines! When the Batflu Goes Drive-Thru. (MIDD)

Posted on March 11, 2021

Middleby Corp. (NASDAQ:MIDD) makes food prep machinery for the restaurant business.

You’ll recall that restaurants have been closed (and going bankrupt) across broad swaths of the planet for the last year.  But that hasn’t stopped the stock of this tool and dye outfit from quadrupling – with the help of massive downward earnings revisions, of course.

Could it be someone’s about to be served a FOUL-SMELLING STEW?!

We think so.

In fact, we’re so unimpressed with MIDD shares that we’ve decided to slash her middle “B” grading and designate her an outright failure.

Consider, first, the fundamentals –

  • P/E is a walloping 44.79,
  • Price to Book is 4.69,
  • There’s no dividend on offer,
  • EPS is down this year by 40.60%, and
  • Q/Q Sales and Earnings are both down, by 7.40% and 51.90%, respectively.

All of which is bad enough… without an alleged pandemic sweeping the world, shutting down eateries left and right and making paranoid distance-lovers of us all.

AND…

The company facing a debt issue, as well.  If the restaurant business doesn’t make a robust recovery, all the discounting in the current stock price will likely collapse.  Middleby will struggle just to pay off its debt.

Now, the chart –

And may the G-d of Israel be with you.

Many happy returns,

Matt McAbby

 

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