Billionaire Ken Griffin Bought Brinker International

Page 1 of 2

CITADEL INVESTMENT GROUPA 13G filed with the SEC has disclosed that Citadel Investment Group, which is managed by billionaire Ken Griffin, owns just over 4 million shares of Brinker International, Inc. (NYSE:EAT), the restaurant company which owns Chilis and Maggiano’s Little Italy. According to the filing, this gives Citadel ownership of 5.5% of the total shares outstanding. Our database of 13F filings shows that Citadel had sold shares during the third quarter and only owned about 80,000 shares at the end of September (find more of Griffin’s stock picks), so the fund’s move into the stock has occurred fairly recently.

Brinker had barely managed to make our list of the ten most popular restaurant stocks among hedge funds for the third quarter of 2012 (see the full rankings); hedge funds tend to be preferring quick service restaurants such as McDonald’s Corporation (NYSE:MCD) or Starbucks Corporation (NASDAQ:SBUX). For example, billionaire Ken Fisher’s Fisher Asset Management owned 2.1 million shares of Brinker at the end of the quarter, but had much larger positions in other restaurant stocks (including McDonald’s). Check out Fisher’s favorite stocks.

In its most recent quarter, ending in September (this was the first quarter of the company’s fiscal year ending June 2013) Brinker reported a 2% increase in revenue versus a year earlier. With restaurant expenses seeing very little growth, earnings were up 18%. While we doubt that Brinker will continue that growth rate, particularly as most of it came from better margins rather than expanding the business, the stock trades at only 16 times trailing earnings and so even moderate improvement in the bottom line would justify the current price. Sell-side analyst estimates have Brinker’s forward P/E, for the fiscal year ending in June 2014, at 12. We would probably need to see continued growth in revenue and earnings to convince us that the company will get there, but at this point we’d lean towards buying.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Top 9 Most Popular Free iPhone Apps

Top 10 Least Expensive Private Business Schools in the US

Top 15 Most Expensive Countries in the World – 2014

Top Businesses to Invest In

Top 5 Things You Might Be Doing Wrong With Your Business

Top 5 Strategic Technology Trends in 2014

Top Rags to Riches Stories

Parenting Behavior That Promotes Future Leaders

Top 5 Mistakes Made by Small Businesses

Top 5 Most Common and Potentially Devastating Financial Blunders

Top 5 Highest Paying Jobs for Web Designers

Top 6 Most Respected Professions that Also Pay Well

Top 5 Pitfalls Investors Should Avoid

Top 6 Lawyers and Policy Makers Under 30

Top 6 New Year’s Resolutions for Entrepreneurs

Top 7 Locations to Check in on Facebook

Top 5 Mistakes made by Rookie eBay Sellers

Top 7 eBook Publishers in 2013

Top 6 Health Industry Trends in 2014

5 Lessons for Entrepreneurs from Seth Godin

Top 5 Success Tips from Jordan Belfort – the Wolf of Wall Street

Best Master’s in Finance Degree Programs

Top 6 Earning Celebrities Over 50

The most expensive sports to play

Top 7 Earning Celebrities Under 25

Best 7 Online Courses to Take: Free Finance MOOCs

Top 6 Bad Habits that Promote Failure

20 Most Valuable Soccer Teams in the World in 2013

12 Most Expensive Countries for Foreign Students

Top 30 Most Influential Women in the World

Top 20 Most Expensive New Year Eve Shows

Top 5 Best Vocational Careers

Top 10 Jobs for 2014 by Salary Gain (Predictions)

Top 5 Digital Trends for 2014

Top 6 Things You Can Do To Increase Your Productivity

Top 9 Trending Smartphones in 2013

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!