The Short Answer
Middleby (MIDD) has a qualitative business verdict that is HALAL, but the latest filing-based debt screen fails. Middleby is a leading manufacturer of foodservice and food-processing equipment.
Foodservice-equipment manufacturing is generally permissible at the activity level. The April 4, 2026 filing reports debt/assets of 34.56%, above the examined 33% limits.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-04-04; calculated 2026-07-15.
1,874.02 / 5,421.987
177.065 / 5,421.987
785.093 / 5,421.987
- Financial
- Fails
- Overall
- Fails
Debt/assets is 34.56%, above the examined 33.333% limit; liquidity/assets is 3.27% and receivables-plus-cash/assets is 14.48%, while gross interest income is unavailable.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 34.56%, above the examined MSCI 33.33% total-assets limit; this is a calculation against the named method, not an index-membership claim.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 34.56%, above the examined Malaysia 33% limit; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the debt failure is independently documented.
Business-activity disclosure
Middleby designs and manufactures commercial-foodservice, food-processing and residential-kitchen equipment. The core equipment activity is generally permissible, while customer menus, end uses and the filing's discontinued-operation presentation require qualitative review.
Limitation: No universal prohibited-activity revenue numerator or scholar-specific purification percentage is disclosed, and gross interest income is not separately isolated.
Purification
Gross interest income is not separately disclosed for continuing operations and no fixed scholar-approved purification percentage is asserted.
Inputs, assumptions and primary sources
- Amounts are USD millions from Middleby's April 4, 2026 Form 10-Q.
- Current long-term debt is $44.154 million and long-term debt is $1,829.866 million; operating leases are excluded.
- Cash and cash equivalents are $177.065 million; no separately identified interest-bearing securities balance is added; receivables, net are $608.028 million.
- First-quarter revenue is $839.908 million. The filing presents interest and debt expense but does not provide a separately usable gross interest-income numerator for continuing operations.
- Middleby's commercial-foodservice, food-processing and residential-kitchen equipment activity remains qualitative; no universal prohibited-revenue numerator is disclosed.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
Middleby's Business Activity
Middleby designs, manufactures, and sells:
- Commercial foodservice: Ovens, fryers, grills, refrigeration, and warewashing equipment
- Food processing: Industrial food-processing systems for large-scale producers
- Residential kitchen: Premium cooking-and-kitchen appliances under multiple brands
These are general-purpose engineered-equipment businesses — manufacturing kitchen and food-processing machinery. This is permissible at the activity level.
Concerns to Be Aware Of
1. Leverage Profile
Middleby has historically funded acquisitions with debt. The debt-to-market-cap ratio should be verified against the 33% threshold at the time of investment, though the company generates strong free cash flow and has been de-levering. Re-verify the screen after material acquisitions and any segment spin-off.
2. End-Market Look-Through
Middleby's equipment is sold to restaurant, hospitality, and food-processing customers whose own product mix varies. Under standard methodology, the relevant classification is general-purpose foodservice-equipment manufacturing rather than the look-through end-customer mix; stricter investors may wish to review exposure to predominantly non-halal customers.
3. Minor Interest Income
Gross interest income is not separately disclosed for continuing operations, so no income percentage or fixed purification amount is asserted here.
Filing-Based Ratios (April 4, 2026)
Using the latest Middleby Form 10-Q (USD millions):
- Debt / total assets: 34.56% — above the examined 33% limits
- Cash + securities / total assets: 3.27%
- Receivables + cash / total assets: 14.48%
- Gross interest income: Not separately disclosed
Methodology Interpretation
These are ZakatInvest calculations from the cited filing, not claims of current index membership or an official scholar ruling:
- FTSE-style: Fails the debt ratio.
- MSCI-style: Fails the debt ratio.
- Malaysia-style: Fails the debt ratio.
Bottom Line
Middleby (MIDD) has a generally permissible equipment business, but its latest filing-based debt/assets ratio is above the examined asset-based limits. That is a failed quantitative screen, not a universal religious ruling; investors should review future filings and consult their preferred methodology.
For Muslim investors seeking industrial-equipment exposure, MIDD sits alongside other halal-screened names like Dover (DOV) and Nordson (NDSN).
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