Middleby (MIDD) has had a fabulous year, even as it consolidates from its all-time high of $239 after its recent Q3 earnings release, rising 69% through November 7th. The stock was trading at 127 almost a year ago when I described its smaller Food Processing Equipment Group as asubstantial growth driver. At the beginning of the year, MIDD announced a game-changer when it acquired Viking Range and entered the residential market, creating a 3rd growth platform. After the analyst day in May, I updated my views regarding the strong growth prospects. While the stock has clearly outperformed my expectations, I think that 2014 will be another year of gains. Today, I am updating my target following a very strong Q3 and discussing the company's entry into yet another market.
MIDD grew sales by almost 40%, which exceeded the consensus by about 4%. Most of the growth was from the Viking acquisition, but both the Commercial Foodservice Equipment Group and the Food Processing Equipment Group grew sales organically by about 12%. Here are some key highlights: