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Wendy's Reinvents Burgers and Fries Worldwide - Top Guru Mason Hawkins Chops

October 11, 2013 | About:
Sally Jones

Sally Jones

47 followers
Wendy’s (WEN), the fast food restaurant, is seizing expansion opportunities worldwide. The company currently has seven billionaire investors on board, net income spiked to $12.2 million in the second quarter, and a major image transformation is in the works to drive brand acceleration. At the end of second quarter 2013, Mason Hawkins was Wendy’s top guru stakeholder with 8.9% of WEN shares outstanding. But as of today, he holds 4.8% of WEN.

Here’s a Wendy’s update and a look at Mason Hawkins’s 46.09% reduction, as of today.

Wendy’s Co. (WEN)

Up 98% over 12 months, Wendy’s Co. has a market cap of $3.28 billion, compared to Burger King Worldwide (BKW) at $6.71 billion and McDonald’s Corporation (MCD) at $94.41 billion.

WEN shares were traded at around $8.35 with a P/E ratio of 231.90 and a P/B of 1.60. WEN’s dividend yield is 2.10%. BKW shares trade at around $19.15; MCD shares are trading at around $94.44.

Wendy's Company franchises and operates company-owned Wendy's quick service restaurants specializing in hamburger sandwiches. Wendy’s Co. has over 6,500 restaurants in operation in the U.S. and 27 countries and territories. Since early 2009, the company has aggressively expanded in Singapore, the Middle East and North Africa, Russia, the Eastern Caribbean, Argentina, the Philippines and Japan. The company states that there is additional opportunity to open over 8,000 restaurants outside of North America.

The company reported its second quarter 2013 financial data with consolidated revenues of $650.5 million, up from $645.9 million in the same quarter of 2012. Wendy’s reported adjusted EBITDA of $102.1 million for the quarter, up from $89.1 million in the same quarter a year ago. Net income jumped to $12.2 million for the quarter, up dramatically from a net loss of ($5.5 million) in the same quarter a year ago. Adjust earnings per share were reported at $0.08 for the most recent quarter, up from $0.05 for the second quarter of 2012. Further, the company plans to sell 425 restaurants in the second quarter of 2014 in an effort to accelerate brand transformation and reinvent around 100 stores.

Guru Action: As of Oct. 10, 2013, Mason Hawkins reduced his position of more than 35 million shares by 46.09%, selling in the average price range of $8.14. The current share price is $8.35, with a change from average up 3%. His current shares remaining are 18,878,200 or 4.8% of shares outstanding.

In his five-year history, Hawkins always made double-digit gains with WEN. In the fourth quarter of 2008, his top gain was 112.9% selling 5,437,242 shares at an average price of $3.89 per share.

Check out this trading history:

1381447578626.png

Overall, Hawkins has gained 61% on 38,568,963 shares bought at an average price of $5.13. Selling, he gained 86% on 9,615,963 shares sold at an average price of $4.45 per share.

Track historical pricing, revenue and net inco­­me since 1990:

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More Guru Action: As of June 30, 2013, two gurus made new buys of WEN. Jim Simons bought 650,082 shares at an average price of $5.79, gaining 44.2%.

Paul Tudor Jones also made a new buy of 63,200 shares at an average price of $5.79 per share, also gaining 44%.

John Burbank sold out 10,000 shares at an average price of $5.79, making a 44.2% gain.

Check out the seven gurus holding WEN and recent insider trading.

Check out the gurus holding BKW, and the numerous gurus holding MCD.



The updated portfolio of Mason Hawkins, Chairman of Southeastern Asset Management, lists 36 stocks, one of them new, with a total value of $20.3 billion and a 3% quarter-over-quarter turnover. Here are a few second quarter sells by Mason Hawkins.

Here is a summary of activity at Southeastern Asset Management:



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About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 4.0/5 (3 votes)

Comments

AlbertaSunwapta
AlbertaSunwapta - 6 months ago
"Wendy's Reinvents Burgers And Fries Worldwide". Ok, I'm sitting. Hit me with it. What's the new burger and fries invention all about.
Sally Jones
Sally Jones - 6 months ago
thanks, sounds like an image makeover for branding purposes.

Please leave your comment:


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