Billionaire Dan Loeb’s Biggest Moves in Q4

Let’s now turn our attention to two “bearish” moves made by Third Point regarding two of its formerly prominent positions. To begin with, the New York-based investment vehicle cut its position in Yum! Brands Inc. (NYSE:YUM) by 11.52 million shares during the December quarter, leaving it with just 75,300 shares. The slashed stake was valued at roughly $5.50 million at the end of 2015. The operator and franchisor of KFC, Pizza Hut and Taco Bell restaurants has seen its shares decline by almost 11% over the past 12-month period. The company’s China business continues to recover from the negative publicity it received in July 2014 related to a food scandal. KFC China same-store sales grew by 6% year-over-year in the final quarter of 2015, after growing by 3% in the third quarter. Meanwhile, the company added at least 2,300 new restaurants last year and expects to open an additional 2,400 restaurants in 2016, which makes us believe that Yum! Brands Inc. (NYSE:YUM) is poised to experience strong growth in the upcoming quarters. Moreover, the company is on track to spinoff its China unit, which will most likely lead to diminished uncertainty around the company’s future performance and growth. Ricky Sandler’s Eminence Capital holds a 2.69 million-share position in Yum! Brands Inc. (NYSE:YUM) as of the end of 2015.

Last but not least, Dan Loeb’s fund cut its stake in Kraft Heinz Co (NASDAQ:KHC) by 8.17 million shares during the fourth quarter, leaving it with only 82,000 shares at the end of December. The shares of the food and beverage company are flat year-to-date. Let us remind you that Kraft and Heinz merged last year to create one of the world’s largest food and beverage companies, a move that was maneuvered by billionaire Warren Buffett and private-equity firm 3G Capital Partners. The combined company posted pro forma net sales (pro forma results assume that the two companies were combined during all periods presented) of $20.32 billion for the nine months that ended September 27, down from $21.63 billion reported for the same period of the prior year. The 6% decrease was mainly attributable to exchange rate headwinds and divestitures. It is important to note that Kraft Heinz Co (NASDAQ:KHC) pays out an annualized dividend of $2.30 per share, thus offering a current dividend yield of 3.20%. John Griffin’s Blue Ridge Capital cut its stake in Kraft Heinz Co (NASDAQ:KHC) by 515,000 shares during the fourth quarter, ending the year with 2.33 million shares.

Disclosure: None