Horizon Kinetics Owns 6% of Wendy’s

Page 1 of 2

Murray Stahl’s Horizon Kinetics has reported a position of over 23 million shares in The Wendy’s Company (NASDAQ:WEN), giving it ownership of 6% of the company. Our database of 13F filings shows that the fund only owned 1.3 million shares of the quick service restaurant at the end of the third quarter of 2012, so Stahl and his team have been buying the stock over the last four months. See more stock picks from Horizon Kinetics. Wendy’s has risen 9% year to date, after having been down in 2012 against a rising market.

The Wendy’s Company recently surprised the Street by reporting 8 cents per share in earnings for the fourth quarter of 2012 (as opposed to expectations of 4 cents per share). Revenue was also up, though only slightly. While the trailing earnings multiple is still very high, annualizing a figure of 8 cents per share yields a P/E of 16 which is actually fairly reasonable. That would be well above analyst consensus, which currently projects 18 cents per share this year and 20 cents per share in 2014. Those figures imply high multiples for the current year and on a forward basis, but we would expect that targets will be moved up in light of the recent earnings beat. We’d also note that Wendy’s pays a dividend yield of 3.1%- likely not high enough to consider it on pure income terms, but potentially a plus for investors.

TRIAN PARTNERS

Billionaire Nelson Peltz’s Trian Partners is a major shareholder in The Wendy’s Company, with 83 million shares in its portfolio at the end of September. This made Wendy’s one of the activist hedge fund’s five largest positions by market value (find more of Peltz’s favorite stocks). Southeastern Asset Management slightly increased its stake to close to 35 million shares; that fund is managed by Mason Hawkins. D.E. Shaw, a large hedge fund managed by billionaire David Shaw, was also buying Wendy’s during the third quarter (check out more stocks D.E. Shaw was buying).

We also looked at other restaurant stocks:

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

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

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!