Long-Term Returns of Jana Partners’ 5 Activist Targets

In this article, we discuss the long-term returns of Jana Partners’ 5 activist targets. If you want to see more stocks in this selection, check out Long-Term Returns of Jana Partners’ Activist Targets. 

5. Bloomin’ Brands, Inc. (NASDAQ:BLMN)

Activist Investment: 2017
Long-Term Returns Since Jana Partners’ Investment: 23.5%
S&P 500 Gain Since Jana Partners’ Investment: 8.1%

Bloomin’ Brands, Inc. (NASDAQ:BLMN) is a company that owns and operates casual upscale casual and fine dining restaurants. It operates through two segments: US and international.

Shares of the restaurant chain popped after Jana Partners confirmed an 8.7% stake in the company in 2017, calling the stock undervalued and attractive.

After becoming the second largest investor, Jana Partners detailed plans to discuss with the board management and shareholders to find ways of unlocking value.

The activist investor also announced plans to push for a potential business sale, divestment of some assets, and board composition.

In 2018, Bloomin’ Brands, Inc. (NASDAQ:BLMN) reached an agreement and agreed to add an independent director to the board proposed by Jana Partners. However, it exited its position in the second quarter of 2018.

4. Topgolf Callaway Brands Corp. (NYSE:MODG)

Activist Investment: 2019
Long-Term Returns Since Jana Partners’ Investment: 17.28%
S&P 500 Gain Since Jana Partners’ Investment: 18.9%

Topgolf Callaway Brands Corp. (NYSE:MODG) is a company that develops, manufactures, and markets golf equipment, golf, and lifestyle apparel. It was formerly known as Callaway Golf Company. The stock jumped by 14% in June 2019 after activist investor Jana Partners confirmed a 9.2% stake in the company.

With the announcement, the activist investor confirmed plans to discuss selling all or part of the gold equipment and apparel maker with management. The activist investor saw it as one of the options for unlocking value as the stock seemed undervalued.

The activist investor would only hold stakes in Topgolf Callaway Brands Corp. (NYSE:MODG) for less than two years, opting to exit at the end of 2020 as the stock bounced back after imploding as the pandemic kick-started a ferocious overall market sell-off.

3. Mercury Systems, Inc. (NASDAQ:MRCY)

Activist Investment: 2021
Long-Term Returns Since Jana Partners’ Investment: -15.56%
S&P 500 Gain Since Jana Partners’ Investment: 6.84%

Mercury Systems, Inc. (NASDAQ:MRCY) is a company that manufactures and sells components, products, and modules for the aerospace and defense industries. Its products and solutions serve over 300 programs with 25 defense contractors and commercial aviation customers.

Activist investor Jana Partners first invested in Mercury Systems, Inc. (NASDAQ:MRCY) in 2021 and started pushing for strategic options to unlock value. The options include pushing management to consider the company’s potential sale.

In July of 2023, Mercury Systems, Inc. (NASDAQ:MRCY) reached an agreement and allowed Jana Partners to nominate Scott Ostfeld for the board. The activist investor also agreed to vote for the company’s nomination at the 2023 annual general meeting.

2. TreeHouse Foods, Inc. (NYSE:THS)

Activist Investment: 2021
Long-Term Returns Since Jana Partners’ Investment: -48.9%
S&P 500 Gain Since Jana Partners’ Investment: 36.98%

TreeHouse Foods, Inc. (NYSE:THS) manufactures and distributes private-label foods and beverages. It mostly provides snacking products like crackers, pretzels, store bakery items, and cookies.

Jana Partners took a 7.3% stake in the company in 2021 and started pushing the company to explore options, including a potential sale.

The activist investor opened discussions with the board to address the undervaluation situation in a bid to unlock shareholder value. The activist investor also announced plans to nominate three members to TreeHouse Foods, Inc. (NYSE:THS)’s board. The private-label foods company would reach an agreement to sell its ready-to-eat cereal business to Post Holdings for $85 million with the activist investor on board.

1. Freshpet, Inc. (NASDAQ:FRPT)

Activist Investment: 2022
Long-Term Returns Since Jana Partners’ Investment: 50%
S&P 500 Gain Since Jana Partners’ Investment: 22.37%

Freshpet, Inc. (NASDAQ:FRPT) is a company that creates and offers natural fresh meals and treats for dogs and cats. It sells its products under the Freshpet brand and Donation and Dog Joy labels. Jana Partners first disclosed a 9.6% stake in the company in September of 2022, when the stock was down by about 60%.

The activist investor invested in the belief that Freshpet, Inc. (NASDAQ:FRPT) was mismanaged and needed a refresh of the board and management. Jana Partners has already secured four seats on the board. The company has also started making operational and capital allocation changes as one of the ways of reinvigorating its prospects.

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily newsletter to get  the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out our articles on Long-Term Returns of Nelson Peltz’s Activist Targets and Jim Cramer Recommended These 10 Stocks.