Insiders Buy More Shares Of These 3 Companies

Restaurant Brands International Inc. (NYSE:QSR) had one director make a sizable purchase last week. Thomas V. Milroy bought 10,000 shares on Wednesday at a weighted average price of $36.52, doubling his stake to 20,000 shares. The company franchises and operates quick services restaurants under the Tim Hortons and Burger King brand names. The shares of this large quick service restaurant chain are down 6% year-to-date even though the company experienced strong top- and bottom-line growth this year. The company’s revenues totaled $3.00 billion for the nine months that ended September 30, up from $781.0 million reported a year ago. TH global system comparable sales growth reached 5.3% for the first nine months of 2015, while BK global system comparable sales grew 5.9% (reflecting the success of new products and promotions). Meanwhile, the company’s net income for the same nine-month period increased $215.2 million year-on-quarter to $327.2 million, as a result of an increase in sales, an increase in franchise and property revenues and a drop in operating expenses. The toughening competition in the QSR industry, the uncertainty in the consumer environment and weakening pricing power are some factors that can put weight on the operator of TH and BK restaurants in the upcoming year. The number of smart money investors bullish on the company declined to 29 from 37 during the September quarter, while Bill Ackman of Pershing Square holds 38.00 million shares in Restaurant Brands International Inc. (NYSE:QSR) as of September 30.

AutoZone Inc. (NYSE:AZO) had not witnessed any insider buying activity in more than one year until last week. Director Douglas H. Brooks reported buying 255 shares at a price of $743.62 per share and currently owns 1,232 shares. AutoZone’s shares are up by 19% year-to-date, while several reputable financial hubs believe the stock is poised to go higher. Earlier this month, RBS Capital Markets reiterated its ‘Sector Perform’ rating on the stock and raised its price target to $789 from $726. In the meantime, the stock trades at a rather cheap trailing price-to-earnings ratio of 19.93, which is below the average of 22.65 for the companies included in the S&P 500. The financial results of this retailer and distributor of automotive replacement parts and accessories have greatly benefited from lower gas prices, which resulted in higher disposable income for customers. AutoZone reported net sales of $2.39 billion for the first quarter of fiscal 2015 that ended November 21, up from $2.26 billion reported for the same period a year ago. Similarly, the company’s total auto parts sales grew 5.6% year-on-year, thanks to increased domestic same store sales and additional revenues from new stores. By the same token, AutoZone’s diluted earnings per share for the quarter increased by 14% year-over-year to $8.29. Hence, it appears that the plummeting oil prices impelled the Director to buy more stock last week, anticipating strong financials in the upcoming quarters. Iridian Asset Management, founded by David Cohen and Harold Levy, holds a 225,667-share positon in AutoZone Inc. (NYSE:AZO) as of the end of the third quarter.

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