Southeastern Asset Management has filed a 13D showing a 15.2% stake in DineEquity Inc (NYSE:DIN). The value based firm managed by Mason Hawkins owns 2,798,762 shares outstanding. Mason Hawkins has decreased his stake in the owner of the famous food chains, IHOP and Applebee’s. According to Southeastern Asset Management’s Q3 13F, the value firm owned 16.87% of DineEquity Inc (NYSE:DIN), or 3,109,600.
Interestingly, another value firm filed recently purchased a 5.73% stake in the Glendale, California based company. Marcato Capital Management, a hedge fund started by Richard “Mick” McGuire, filed a 13D showing the large holding yesterday. Prior to the starting the hedge fund, Richard McGuire was a senior analyst at Bill Ackman’s Pershing Square Capital.
DineEquity, Inc. franchises, owns and operates restaurants under the Applebee’s Neighborhood Grill & Bar and IHOP brands. The company’s 400+ franchisees operate more than 3,500 restaurants across 18 countries. DineEquity was founded in 1958 and is headquartered in Glendale, California. The companies main competitors include, Ruby Tuesday, Inc. (NYSE:RT), Denny’s Corporation (NASDAQ:DENN), and Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL)
Jean Birch, IHOP’s former president, departed on August 27, 2012. CEO of Dineequity, Julia Stewart will hold off on pursuing a new concept head until she sufficiently lays the groundwork for IHOP’s turnaround efforts, including: (1) menu revitalization/ streamline with greater value focus, (2) operational overhaul (heightened inspections, simplified procedures, increased speed of service), (3) new media strategy and (4) continual assessment of media strategy and efficacy.
For the nine months ended 30 September 2012, DineEquity Inc revenues decreased 17% to $691.3M. Net income applicable to common stockholders increased from $43.4M to $104.3M. Revenues reflect Company Operations segment decrease of 35% to $173.4M, Rental Operations segment decrease of 4% to $60.1M. Net income reflects Gain on disposition of assets increase from $21.3M to $89.6M (income).
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