Below you can find billionaire Nelson Peltz’s top 5 stock picks. For our detailed discussion as well as a more comprehensive list please see Billionaire Nelson Peltz’s Top 10 Stock Picks.
5. The Wendy’s Company (WEN)
Known to be a holding company, The Wendy’s Company is home to the other famous fast-food chains in the world. It owns the outstanding shares of Wendy’s, Baja Fresh, Pasta Pomodoro, and Arby’s. With a market capitalization of $4.662 billion, it can be said that The Wendy’s Company is one of the largest in the restaurant industry.
According to Wendy’s, “In 2020 and beyond, we will maintain and advance our Good Done Right approach by engaging and empowering our team members, championing new strategies with our suppliers and bringing our customers and stakeholders along with us on this journey. This will include strengthening existing initiatives and launching new ones to enhance our approaches to food, people, and our footprint. Our aspirations to be a leader in the restaurant industry don’t just apply to the food we serve. We also aspire to be a best-in-class employer and a dedicated member of the community. To support our launch of breakfast across the U.S., our system expects to hire more than 20,000 new team members in 2020. The Company has also continued its focus on diversity and inclusion. As our system grows, we want Wendy’s to continue to be a great place to eat and a great place to work.”
The Wendy’s Company currently represents a 9.81% allocation inside Nelson Peltz’ portfolio. He has 26,630,629 shares of WEN that is valued to be $593,863,000.
4. Mondelez International, Inc. (MDLZ)
Mondelez International is proclaimed to be one of the biggest food companies globally that operate in 80+ countries and has around 80,000 employees worldwide. The company’s products are being distributed in over 150 countries around the world with its trademark brands namely, Toblerone chocolate, Cadbury Dairy Milk, Oreo, Milka, Belvita, LU biscuits, and many more.
The company’s advocacy is to lead the future of snacking around the world by offering the right snack for the right moment, made the right way. Mondelez International has 3 Top Priorities as they mentioned: One is to accelerate consumer-centric growth, the other one is to drive operational excellence, and lastly, to build a winning growth culture. Mondelez is also focused on consistently achieving marketing and sales excellence for the benefit of many.
Nelson Peltz had 12,241,559 shares of Mondelez International Inc. worth $709,278,000 that occupies an 11.62% portion of the fund’s total 13F portfolio.
3. Comcast Corporation (CMCSA)
Established and developed through different years of mergers and acquisitions, Comcast Corporation is now considered to be a telecommunications conglomerate. Being a multinational media and technology company, Comcast focuses on two main businesses namely, the Comcast Cable and NBCUniversal.
To give a more brief description of CMCSA’s two main businesses, here is a quote from Comcast Corp’s newsletter:
“Comcast Cable is one of the United States’ largest video, high-speed Internet, and phone providers to residential customers under the XFINITY brand, and also provides these services to businesses. It provides security and automation services to residential customers. Comcast also offers a wireless cell phone service under the brand Xfinity Mobile. The company has 29 million customer relationships in the United States (39 states and Washington, D.C.).
NBCUniversal is one of the world’s leading media and entertainment companies. NBCUniversal owns and operates a valuable portfolio of news and entertainment broadcast and cable television networks and brands (including NBC, Telemundo, NBC News, CNBC, MSNBC, NBC Sports, USA Network, E!, Bravo, and Syfy), premier motion picture companies (Universal Pictures, Focus Features, Illumination Entertainment, DreamWorks Animation), significant television production operations (Universal Cable Productions, Telemundo Studios, Universal Television), two leading television stations groups, renowned theme parks (in the U.S, Japan, Singapore and a park in development in China), and a suite of Internet-based businesses. “
Comcast Corp is part of the Top 3 holdings of Nelson Peltz’ Trian Fund Management with an 11.94% slice, this makes Comcast the 3rd highest in terms of Peltz’ total portfolio allocation. Peltz has invested $722,958,000 for 15,628,146 shares of Comcast Corp. Here is what Longleaf Partners said about the stock recently:
“Comcast (18%, 0.83%), the cable and entertainment company, added to the strong absolute results in the quarter. Cable delivered one of its best quarters of net subscriber additions ever and grew EBITDA 5.5%, while losses from closed small business customers have moderated during reopening from the COVID lockdown. Sky, the European TV and broadband business acquired in 2018, retained subscribers at a high rate despite the extended absence of live sports. CEO Brian Roberts stated that Sky remains on pace to double its EBITDA over the next several years. Comcast’s new Peacock streaming service and Universal theme parks are ramping up revenues gradually, presenting more opportunities for Comcast to improve earnings significantly over the next several years. Despite the double-digit returns in the quarter, the company remains discounted. We were encouraged by Roberts’s statement in the quarter that he was committed to repurchasing shares again in the near future.”
2. The Procter & Gamble Company (PG)
P&G is considered to be one of the oldest running companies in the world. It is a global consumer goods corporation that continues to innovate and develop new products despite being over 180-years-old.
At present, P&G is branded to be the world’s largest consumer goods company. They have recorded 5 billion consumers in 180 countries around the globe. The company is known for its billion-dollar 65 individual brands that are put into 10 product categories such as fabric care, home care, baby care, feminine care, family care, grooming, oral care, personal health care, hair care, plus the skin & personal care.
According to P&G, “At P&G, innovation isn’t just about making our products the best; it’s about improving lives. Thinking innovatively across every area of the business has the power to improve our world, lend a helping hand, or spark a movement. It can also lead to industry-changing ideas and technology such as collaborative robots, motion sensors, Blockchain, 3D printing, augmented reality, voice recognition, and new polymer developments.
We believe the best ideas emerge from the creative connections that happen between our talented employees. We encourage our multi-functional teams to work together to come up with new ideas to address the challenges we face. And we enable this through creative frameworks and inspiring office spaces designed by specialized architects—because a creative and dynamic work environment is key to bringing dynamic ideas to life.”
Nelson Peltz’s 10,128,875 shares of PG is valued to be worth $1,407,812,000. These Procter & Gamble shares occupy 23.26% of The Trian Fund’s total 13F equity portfolio.
1. Sysco Corporation (SYY)
Proclaimed as the world’s biggest broad-line food distributor, Sysco Corporation is engaged in distributing and marketing food products, kitchen equipment, tabletop items, small wares, educational facilities, healthcare facilities, hospitality businesses, and acts as a wholesaler to different companies that offers food service. Aside from these, they also offer management consulting.
Sysco is a multinational company that has 330 distribution facilities and provides service to 90 different countries around the globe. With more than 600,000 clients, Sysco is recognized to be the world’s global foodservice leader.
For the First Quarter Fiscal of 2021, Sysco published a negative report for their sales, gross profit, operating income, and earnings per share. The same is true with all the other companies in the foodservice industry. Despite these negative results that are caused by the pandemic, Sysco is expected to greatly rebound this 2021, especially with the vaccine being just around the corner.
According to Sysco’s President and CEO Kevin Hourican with regards to their Q1 FY 2021 report:
“Although our first quarter 2021 results continue to be impacted by the pandemic, we are pleased with our overall expense management and our ability to produce positive free cash flow and a profitable quarter despite a 23% reduction in sales. We saw improvement in the overall sales environment throughout the quarter and remain resolutely focused on serving our customers. We are confident that Sysco’s business transformation will accelerate profitable growth as we differentiate our business from our competition to better serve the evolving needs of our customers. I am pleased with the focus and agility of Sysco’s associates as we work to transform the company and manage the complexities of the COVID-19 pandemic.”
Trian Fund Management’s Nelson Peltz’s, put his biggest portfolio allocation to Sysco Corporation that is 25.06% of his total equities. He was able to secure 24,379,843 shares of Sysco that amounts to a massive $1,516,914,000.
Please also see 10 Best Value Stocks To Buy Now and Billionaire Stephen Mandel’s Top 10 Stock Picks.
