Investor Day: MIDD Earnings Compounds DD+; Midera MSD+ Organic Growth

Research evidence excerpt

Investor Day: MIDD Earnings Compounds DD+; Midera MSD+ Organic Growth

USA | Multi-Industrials

Middleby EquityMayResearch12, 2026

FLASH NOTEInvestor Day: MIDD Earnings Compounds DD+;

RATING BUYMidera MSD+ Organic Growth

PRICE $156.25^

We attended the MIDD / Midera investor day. Key takeaways: 1) MIDD earnings

grow at 10-15% CAGR through 2028 driven by margins, organic growth, and PRICE TARGET | % TO PT $200.00 | +28%

capital deployment 2) MIDD margins expand 200-400bps largely through self- 52W HIGH-LOW $169.44 - $110.82

help initiatives 3) Midera grows MSD+ organically with upside from M&A 4) FLOAT (%) | ADV MM (USD) 98.3% | 98.04

Significant margin expansion opportunities (500bps at the midpoint) at Midera MARKET CAP $7.4B

driven largely by operational efficiencies and cost optimization TICKER MIDD ^Prior trading day's closing price unless otherwise

noted.

MIDD Earnings Grow DD. MIDD is targeting 10-15% adj. EPS growth through 2028, underpinned

by 3-6% organic sales growth and 200-400bps of adj. EBITDA margin expansion. Growth is driven

roughly 1/3 by market recovery (1-3% incl. 1-1.5% pricing) and 2/3 by company-specific initiatives

(2-3%) around innovation, go-to-market, and AM & services. Market. Mgmt expects a demand

inflection in 2026 after 2yrs of restaurant traffic declines and food/labor cost pressures deferring

equipment purchases. Signs of recovery are visible, with 1Q organic growth coming in at 8%, driven

largely by chains turning positive vs. down 8% in 2025. Innovation. MIDD has a deep NPI pipeline

across Cooking & Warming and Ice & Beverage. AM & services. Parts and service revenue is ~

$400m (17% of sales), but mgmt framed the service transformation primarily as an equipment pull-

through opportunity rather than a standalone revenue driver.