Shares of Middleby Corporation (MIDD) surged 7.14% in intraday trading on Tuesday, as the kitchen equipment manufacturer announced plans to spin off its food processing business and reported better-than-expected fourth-quarter results.

The company revealed its intention to separate its food processing segment into an independent, publicly-traded company through a tax-free spin-off expected to be completed by early 2026. This strategic move is aimed at enabling both businesses to pursue their respective growth strategies with enhanced focus and flexibility.

Middleby also posted solid Q4 2024 financial performance, with adjusted earnings per share of $2.88 beating the consensus estimate of $2.52. Revenues of $1.01 billion were slightly above expectations of $998 million. The company cited strong margins and cost discipline as factors behind the earnings beat.

Additionally, Middleby appointed activist investor Ed Garden and marketing veteran Julie Bowerman to its board of directors, following pressure from Garden's firm to boost shareholder value. The board changes are expected to provide fresh perspectives and support the company's strategic initiatives.