Choice Equities Capital Management, a hedge fund manager, released its fourth-quarter investor letter recently. You can view it here. In the fourth quarter, the fund returned +6.5% on a net basis compared to a +6.2% gain for the Russell 2000 Index and a +7.6% gain for the S&P 500 Index. In 2022 the fund returned -31.6% compared to -20.5% and -18.1% annual losses for the indexes, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Choice Equities Capital Management highlighted stocks like Papa John’s International, Inc. (NASDAQ:PZZA) in the fourth quarter 2022 investor letter. Headquartered in Louisville, Kentucky, Papa John’s International, Inc. (NASDAQ:PZZA) franchises pizza delivery and carryout restaurants. On April 4, 2023, Papa John’s International, Inc. (NASDAQ:PZZA) stock closed at $75.06 per share. One-month return of Papa John’s International, Inc. (NASDAQ:PZZA) was -9.42%, and its shares lost 29.05% of their value over the last 52 weeks. Papa John’s International, Inc. (NASDAQ:PZZA) has a market capitalization of $2.602 billion.
Choice Equities Capital Management made the following comment about Papa John’s International, Inc. (NASDAQ:PZZA) in its Q4 2022 investor letter:
“Our holdings are generally performing as anticipated. As a general statement, despite the potential economic headwinds, we continue to expect growing cash flows, and in nearly all cases operating margin expansion, into next year and beyond. Restaurants – Signs suggest our restaurant margin expansion thesis continue to play out as expected, as restaurants have historically been slow to walk back inflation-based menu price increases with their customers by lowering prices even if incoming food costs decline. Papa John’s International, Inc. (NASDAQ:PZZA) and Brinker International (EAT) continue to execute well.
We continue to find new attractive investments, particularly under a broader theme of normalization. Somewhat like our restaurant margin expansion thesis, we are finding ample opportunities in other industries where companies look poised for margin expansion on the back of cost relief from normalizing prices on items such as freight, cotton or merchandising margins.”
Copyright: olgasun / 123RF Stock Photo
Papa John’s International, Inc. (NASDAQ:PZZA) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 23 hedge fund portfolios held Papa John’s International, Inc. (NASDAQ:PZZA) at the end of the fourth quarter which was 22 in the previous quarter.
We discussed Papa John’s International, Inc. (NASDAQ:PZZA) in another article and shared the list of biggest fast-food companies in the world. In addition, please check out our hedge fund investor letters Q4 2022 page for more investor letters from hedge funds and other leading investors.
Suggested Articles:
- 12 Cheap Penny Stocks to Buy According to Hedge Funds
- Top 20 Beer Companies in the World
- 12 Questions to Ask Before Early Retirement
Disclosure: None. This article is originally published at Insider Monkey.
