Ricky Sandler’s Eminence Capital boosted its
stake in Wendy’s by about 40 percent, to roughly
12.5 million shares, or 5.2 percent of the fast-food giant,
according to a regulatory filing. As a result, it is now
the fourth largest shareholder. The filing indicates this is a
passive investment. The largest shareholder, of course, is
Nelson Peltz’s Trian Fund Management. Peltz is chairman
of the board, while Trian co-founder Peter May is the vice
chairman. Peltz’s son Matthew Peltz and Joseph
Levato, a long-time business associate of the Trian crowd, also
sit on the board. In the third quarter, Melvin Capital took an
initial position of 2 million shares. Wendy’s
stock closed at $13.86 on Friday, its lowest price since
Wendy’s is one of a number of companies
expected to be hurt by new revenue recognition rules for
franchise fees scheduled to go into effect on January 1.
Specifically, fees for new stores and franchise renewals will
be required to be booked over the life of the franchise term,
rather than up front, according to a report from Credit Suisse.
Royalty fees are not affected, but other related fees are.
"Neither of these changes will have any impact on cash
flows, so theoretically [they] should not impact equity
valuations," the investment bank said in a recent report.
"However, our conversations suggest investors are concerned
that reduced EPS could negatively impact these stocks, even if
non-cash, particularly given relatively elevated
It added that Wendy’s is one of several
companies whose earnings will be "most impacted."
Wendy’s current low stock price may suggest the
impact is already reflected. Credit Suisse currently has a
neutral rating on the stock and a $15 price target.
Dan Och’s Och-Ziff Capital Management disclosed it
owns 2.5 million shares of Jianpu Technology, or 9.36 percent
of the online Chinese financial adviser, which went public
nearly two weeks ago. The company describes itself as providing
users "with personalized search results and recommendations
that are tailored to each user’s particular
financial needs and credit profile."
Farallon Capital Management bought about
480,000 shares of Wabtec, boosting its stake to 5.1 percent. It
remains the sixth largest shareholder of the provider of
technology-based equipment and services for the rail
Saba Capital Management boosted its stake
in Delaware Enhanced Global Dividend & Income Fund to
nearly 1.6 million shares, or 10.06 percent of the closed-end
mutual fund. The credit specialist, which has been taking
activist stakes in closed-end funds, made this filing in an amended 13G, meaning it is a