MSD Capital Further Decreases Stake In DineEquity Inc (DIN)

Glenn Fuhrman and John Phelan, the managers of MSD Capital, have further decreased their stake in DineEquity Inc (NYSE:DIN), according to a recent filing with the Securities and Exchange Commission. The fund has disclosed the sale of 125,000 shares of DineEquity Inc (NYSE:DIN), half of the reduction it made in March. Following this move, MSD Capital is left holding 1.92 million shares, which account for 9.7% of the company’s common stock.

Frank Brosens, the manager of Taconic Capital, is still optimistic about the prospects of DineEquity Inc (NYSE:DIN), having increased his fund’s stake in the company by 15% during the second quarter of 2014. In its latest 13F filing, Taconic Capital has reported ownership of exactly 400,000 shares, valued at approximately $31.8 million. Mark Weissman, Adam Cohen and David Coleto also like DineEquity Inc (NYSE:DIN) and have boosted their fund’s investment in the company by 19% during Q2. Caspian Capital Partners now holds roughly 340,000 shares, which carry a value of $27 million. Alexander Mitchell and his fund, Scopus Asset Management, have reported a 4% increase in their investment in the company, taking it to 300,000 shares worth in excess of $23.8 million.

DineEquity Inc (NYSE:DIN) engages in franchising and operating two restaurant concepts: Applebee’s Neighborhood Grill & Bar and International House of Pancakes. For the three months ending March 31, 2014, the company has reported revenues of $167 million, a quarterly increase of 5.8%, and earnings of $1.11 per share. Since the start of the year, the stock has been trending sideways, dancing around the $80 level. It carries a trailing Price-to-Earnings (P/E) ratio of 21.xx, just below the industry average of 23.90.

Glenn Fuhrman and John Phelan are very bullish on Wesco Aircraft Holdings Inc (NYSE:WAIR). During the second quarter of 2014, they have built a significant stake in the company, making it MSD Capital’s third biggest investment. The fund currently holds 5.42 million shares valued at $108 million. Although the MSD Capital’s stake in Asbury Automotive Group, Inc. (NYSE:ABG) has been trimmed by 8% during the quarter, it remains the fund’s biggest equity position with 2.37 million shares worth in excess of $163 million.

Disclosure: none.