Michael Dell (Trades, Portfolio)Â slashed his position in DineEquity Inc. (DIN, Financial), selling 1 million shares on Feb. 26.
DineEquity together with its subsidiaries owns and franchises the Applebee’s Neighborhood Grill & Bar as well as the International House of Pancakes (IHOP) chain of restaurants. The company was originally founded under the laws of Delaware in 1976 with the name IHOP Corp. Effective June 2, 2008 the company’s name was changed to DineEquity. The company generates its revenue from royalties, fees and other income from 2,033 Applebee’s restaurants and 1,672 IHOP restaurants the company franchises.
DineEquity has a market cap of $1.73 billion, an enterprise value of $3.06 billion, a P/E ratio of 17, a P/B ratio of 6.49 and a quick ratio of 1.54.
Dell is a Houston native and the founder, CEO and chairman of the board of directors for Dell. He founded the computer company in 1984 with $1,000 in his college dorm room at the age of 19, building computers and selling them to his classmates before dropping out of college at the age of 21.
Today, Dell has a market cap of $24.38 billion with more than 100,000 employees worldwide who serve the IT needs of global corporations, small and medium-sized businesses, governments, health care providers, educational institutions and home computer users. Dell currently ranks as the 35th-richest person in the world, according to Forbes.com, with an estimated net worth of $22.3 billion.
In 1998, MSD Capital was founded as an investment firm to manage capital for Dell and his family. The firm primarily focuses on publicly traded securities, traditional private equity activities and real estate.
DineEquity is also traded in Germany.
Below is a Peter Lynch chart for DineEquity.
DineEquity has a financial strength rating of 4/10, according to GuruFocus, with a cash-to-debt ratio of 0.10 ranking it lower than 85% of the 306 companies in the Global Restaurants industry. DineEquity has a profitability & Growth rating of 5/10, according to GuruFocus, with a 34.29 operating margin % ranking it higher than 95% of the 305 companies in the Global Restaurants industry.
Dell is one of the most successful entrepreneurs in history. Dell thoroughly understands the importance of companies' financial statements for them to maintain a successful business. DineEquity's revenues have been decreasing at an average rate of 7% over the previous 10 years which is not a good sign. It is likely that DineEquity’s current financial situation had a large impact on Dell's decision to decrease his holding.
Cheers to your investment success.
