Middleby Corp (NASDAQ: MIDD) reported Q4 EPS of $1.79, $0.14 better than the analyst estimate of $1.65. Revenue for the quarter came in at $756.67 million versus the consensus estimate of $737.6 million.

Timothy FitzGerald, Chief Executive Officer, commented, “At the Commercial Foodservice Equipment Group, we realized growth in sales to major restaurant chains and improved sales in international markets, including Asia and Latin America. We anticipate the growth with chains will carry forward into 2019 as our ongoing pipeline of innovations, particularly in beverage, accelerated ventless cooking and automated conveyorized equipment are adopted by customers to address challenges of labor cost and availability, menu flexibility, kitchen footprint and operating costs. The disruption from the realignment of our sales representatives is largely behind us. As we enter 2019, we are excited about the opportunity to work with a very dedicated team of professional sales representatives that has invested in the Middleby relationship. These investments have included the addition of test kitchens, chefs, and sales personnel. We remain focused on working closely with our rep partners to drive solution selling across the brands, which will allow for greater efficiency in bringing our best innovation to our customers. We realized solid sales growth internationally in the quarter although the markets remain somewhat mixed heading into 2019, particularly with challenges in the U.K. and Europe. We however continue to position Middleby for long-term growth with continuing investments overseas, particularly in the emerging markets.

At the NAFEM show a few weeks ago, we debuted the Crown Steam Group. The acquisition of Crown late in 2018 solidified a dedicated lineup of the most innovative steam cooking solutions in the industry. The combination of the highly-respected Crown brand with the recent acquisitions of Firex and Market Forge provides a consolidated group in the U.S. market and positions Middleby as a technology leader in this product category.

Middleby also announced the addition of EVO to the Middleby family of brands. This acquisition further positions Middleby as a leader in ventless cooking with the broadest portfolio of offerings in the industry. The patented EVO ventless downdraft system provides a unique solution that complements our diverse suite of ventless products under the TurboChef, Wells, PerfectFry, Doyon, Middleby Marshall and CookTek brands. There is a continued demand for ventless cooking options as operators understand the significant costs associated with the installation of traditional ventilation. Additionally, customers are increasingly in search of solutions not to be restricted by externally vented hoods and duct work, as they cook in non-traditional locations and add new equipment to existing kitchens.

At Taylor, our integration efforts are on track and we remain confident in our ability to achieve profitability targets, as we have made significant progress since the acquisition in mid-2018. We remain focused on supply chain and manufacturing investments to further improve profitability and production efficiencies. Most importantly, we are focusing our efforts toward delivering innovative, new products to the market in core product categories, including frozen beverages and desserts, which we anticipate will provide future growth and margin enhancement opportunities.”

Mr. FitzGerald added, "At our Residential Kitchen Equipment Group, Viking continued to grow at double-digit rates. The momentum remains strong for our innovative, new lineup of Viking products. Most recent new product launches include expanded offerings in refrigeration and the introduction of our new Virtuoso cooking line. Investments we previously made in our company-owned Middleby Residential sales, distribution and service organizations have given us a competitive advantage and a vehicle to support all of the brands with our dealer partners and end-user customers. There will be minimal disruption in the future as we have largely completed the transition with our third-party distributors as we enter into 2019 and are well-positioned for growth in North America. Domestic gains were again offset by the AGA Rangemaster business which has been negatively impacted by the challenging market conditions in the U.K. given the uncertainty of Brexit. Despite the market conditions in the U.K., we are pleased with continued improvement at AGA Rangemaster as we have simplified the business both in manufacturing and sales operations. During the fourth quarter we also completed the closure of the non-core Grange furniture business, which had adversely impacted both sales growth and profitability during 2018."

Mr. FitzGerald concluded, "At the Food Processing Equipment Group, we have seen improvement as compared to recent quarters. However, the absence of large projects due to market dynamics, particularly on the higher profitability meat processing side of our business remains a challenge. Against the backdrop of a difficult 2018, we have made significant investments in new product development and are excited about the launch of these innovations in 2019."

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