MIDD: (BASSOUL) What sets us apart from the competition are three unique factors. One, we focus only on the hot side of the kitchen, which makes us different from every other manufacturer in our industry. Our core competency is to provide product for chefs to cook, bake and heat with. We do not offer refrigeration, dishwashing, flatware or ice machines. We believe that the hot side is the value-added side of the business. A restaurant lives and dies by the quality and consistency of the way the meal is cooked. That is where The Middleby Corporation provides cooking solutions.

WSR: How large is the market you are targeting and what is the potential growth prospect for that market?

MIDD: (FITZGERALD) The commercial cooking equipment market is approximately $1 billion domestically. This market has been growing at a consistent rate of four to five percent annually over the past 15 years. We currently have approximately 25 percent market share domestically and we believe the international market is larger than the U.S. market and is growing at a rate that outpaces the United States. We are uniquely positioned to capture this growing market.

WSR: In terms of growth expectations for the next year or two, what goals have you set for the company?

MIDD: (FITZGERALD) We have three primary goals. The first objective is to grow revenues at a rate outpacing the industry. Secondly, we expect to realize minimum return on operating income to sales of 10 percent annually. We are heavily focused on reducing the acquisition debt. Our goal is to repay this debt within the next six years.

WSR: What is your strategy moving forward?

MIDD: (BASSOUL) Our strategy is simple. It’s to become the one stop shop for cooking equipment worldwide. This is accomplished by engineering solutions and equipment to assist chefs in three areas, energy savings, labor saving and food safety. We recently re-designed our conveyor oven with patented technology that reduces gas consumption by 30 percent against the competition, a huge energy savings. We also just introduced a patented antibacterial convection oven that kills germs and increases food safety. We also offer a self-cleaning steamer that requires no deliming, which involves large labor savings. We are continuously changing and rewriting the rules. Twenty years ago, The Middleby Corporation introduced a conveyor oven that enabled a pizza restaurant to offer a thirty-minute delivery. We will continue that legacy of innovation. So our strategy is to design a minimum of two patented solutions for the hot side each year. I would like to return to the discussion of what sets us apart from the competition. I started to talk about our focusing only on the hot side of the kitchen. I would also like to mention that we play in every segment of the hot side, by manufacturing ranges, ovens, toasters, steamers, griddles and fryers and we have a number one or number two market position in each product offering on the hot side. Also, we are the only company in the industry with a truly international infrastructure. We can sell, support and service any chain as it expands globally. We have established offices in all the major markets to support our customers, including Mexico, the United Kingdom, Spain, India, China, Korea, the Philippines and Taiwan. This applies not only for U.S. chains such as KFC expanding outside the United States but also for Spanish chains such as Telepizza expanding into Latin America. To recap, the three unique factors that set us apart are: our focus on the hot side only, our number one or number two market position and our global infrastructure.

WSR: Who are some of your key customers?

MIDD: (BASSOUL) Some of our largest customers are well-respected household names, and well-run operators such as Tricon (the parent company of Pizza Hut, KFC, Taco Bell, A&W and Long John Silver’s), McDonald’s, Domino’s, Wendy’s, Papa John’s, Dunkin Donuts, TGI Friday’s, Cracker Barrel and Darden (the parent company of Red Lobster and Olive Garden). These customers are expanding into new concepts and moving overseas. For example, Tricon is expanding aggressively in China and Darden is expanding with new concepts such as Bahama Breeze and Smoky Bones.

WSR: Do you think the investment community understands your business at all?

MIDD: (BAKER) Since the announcement of our acquisition of Blodgett from Maytag Corporation, we have had a substantial increase in exposure and interest from the investment community. Now with the acquisition completed, Middleby will start to work with the investment community to foster a better understanding of our company.

WSR: For potential investors, what should they use as milestones or benchmarks to judge you over the next 12 months?

MIDD: (BAKER) We believe that EBITDA improvement and debt reduction are the two benchmarks that the company should be judged on. Management is incentivized to maximize these two goals and this incentive aligns management and shareholder interests.

WSR: Why is The Middleby Corporation a good investment opportunity?

MIDD: (BASSOUL) The Middleby Corporation is a great investment for three solid reasons. One, we sell a product that is always in demand. We have been in business for over a hundred years. More than 50 percent of the family’s food budget is spent eating outside the home and we do not see that trend going away any time soon. Number two, we see higher demand for our products in the next five years. Due to chains expanding overseas, to more favorable demographics including dual income families with greater disposable spending income and to greater diversity of restaurant themes and menu concepts. Reason number three, we have a record for strong financial discipline at Middleby. We have efficient operations and strong working capital management. We are very cost conscious while remaining customer driven. Our allocation of resources is focused externally at our customers. I believe The Middleby Corporation is a great value stock for the next five years.