Two Restaurant Chain Operators That Insiders are Fond of

Since the beginning of the week, two well-known restaurant chain operators have seen their insiders buy their stock. As insider purchases can be interpreted as bullish signals, we will take a closer look at these transactions, and the hedge fund shareholders in each company, in order to elucidate if they stand as interesting investment options.

The first company in this list is The Wendy’s Co (NASDAQ:WEN), a $3.1 billion market cap quick service restaurants operator in the U.S. and several other countries around the world, known for its square burgers. On April 15th, Scott R. Toop, Senior Vice President, General Counsel and Secretary, acquired 10,080 shares of the company. He paid $8.37 per share for the first 7,580, and $8.38 per share for the remaining 2,500. Following these transactions, the SVP holds 59,580 shares of the company, worth about half a million dollars.

The Wendy's Co (NASDAQ:WEN)

In addition to Mr. Toop, about 20 major hedge funds hold long positions in the stock. Amongst them, we can count Nelson Peltz’s Trian Partners, the largest institutional sponsor, which owns more than 83 million shares; Murray Stahl’s Horizon Asset Management, with 26.4 million shares; and Mason Hawkins’ Southeastern Asset Management, with 11 million shares. Other big names worth mentioning are Jim Simons, D. E. Shaw, Joel Greenblatt and Ken Griffin.

The other restaurant operator in this list is Ruby Tuesday, Inc. (NYSE:RT). Although it is much smaller than Wendy’s (its market cap barely surpasses $429 million), insiders and hedge funds are also betting on its future. Last Monday, April 14th, Donald Hess, Board Director, started a position with 50,000 shares, for which he paid an average price of $6.849 per share, having spent more than $340,000 in stock.

Furthermore, it is not only Mr. Hess that is betting on the company. All five of the firm’s largest hedge fund shareholders either increased their stakes or started a new position in the stock over the last reported quarter. Let’s take a look at them (sorted by amount of shares held):

Chuck Royce’s Royce & Associates holds 1,45 million shares, and most recently increased its stakes by 11%. Sahm Adrangi’s Kerrisdale Capital, Michael Zimmerman‘s Prentice Capital Management, and Michael Pollack‘s Destrier Capital, all recently started positions in the stock, with 384,656 shares, 256,498 shares, and 219,721 shares, respectively. Finally, Jim Simons‘ Renaissance Technologies upped his bets by 21%, to 163,423 shares.

With both insiders and major hedge funds feeling bullish about these stocks, should you too?

Disclosure: Javier Hasse holds no position in any stocks mentioned

Recommended Reading:

Insider Activity at Three of George Soros’ Picks

Insider Activity At Brown Shoe Company (BWS) and Flexsteel Industries (FLXS)

Four Warren Buffet Picks With Recent Insider Purchases

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 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

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!