Third-quarter net profit at Middleby increased 27% to $12.2 million, or $1.48 per share. Sales increased 28% to $103.2 million. The company cited recent acquisitions as contributing to that impressive increase in revenues. It also used operating cash flows to decrease its debt by 12%. (For the lowdown on the numbers, see the related Fool by Numbers.)
Most of us are well aware of restaurants we see on any nearby street, like McDonald's
Finding companies that operate behind the scenes can be good stuff for investors. Indeed, Middleby is a three-time selection for the small-cap-focused Motley Fool Hidden Gems service, and the most successful. Tom Gardner first recommended it in November 2003, and since then its stock has appreciated 430% (vs. 34% for the S&P). Meanwhile, it's got a strong and optimistic following in the Fool community -- it's a five-star stock in Motley Fool CAPS, with a whopping 741 outperform ratings (and only nine underperforms).
Middleby shares jumped 9% after the earnings release. It's no wonder that investors are seeing a great opportunity; Middleby is a well-managed company operating in a large and growing market. In fact, in his latest rerecommendation, Tom Gardner said that Selim Bassoul makes his short list of all-time favorite chief executives. Given the company's latest accomplishments, Middleby seems like a company that deserves rising optimism.
Hungry for more on Middleby? Check out the following Foolish articles:
- Dig in to the Fool by Numbers on Middleby.
- One Fool describes his experience with Middleby.
- Middleby was still delicious in March.