MSD Capital Trims Its Stake in DineEquity, Inc (DIN)

Glenn Fuhrman and John Phelan have reduced their position in DineEquity, Inc (NYSE:DIN). A recent 13G filing shows that MSD Capital, L.P., sold 300,000 shares of the company bringing the ownership down to 2.1 million shares. The new stake represents a nearly 10.8% ownership of Dineequity, Inc, significantly down from 33.6% held at the end of last year.

Mason Hawkins of Southeastern Asset Management is also a significant holder of DineEquity, Inc (NYSE:DIN), which owns 1.3 million shares of the company. Other remarkable stakeholders of the company are Frank Brosens’ Taconic Capital, which holds 365,000 shares worth $30.5 million, and Christopher Hansen’s Valiant Capital, which owns 286,400 shares worth $23.9 million.

Based in Glendale, California, DineEquity, through its subsidiaries and franchises operates restaurants under the Applebee’s Neighborhood Grill & Bar and International House of Pancakes (IHOP) brands. The company has a market cap of $1.6 billion and a beta of 3.17.

For the fourth quarter of 2013, DineEquity, Inc (NYSE:DIN) recorded EPS of $0.94, which compares to $0.83 for the same period in 2012. For full 2013, it reported earnings of $4.24 per share, compared to $4.28 in 2012. For full 2014, the company expects net income of around $1.5 million. Late last month, DineEquity declared a first quarter cash dividend of $0.75 per share of common stock, payable March 28, 2014.

In 1998, MSD Capital was founded strictly to manage Michael Dell’s funds. The hedge fund engages in a broad range of investments ranging from publicly traded securities to privately traded companies, and even dabbles in real estate. A key differentiating aspect of the fund is that it maintains a permanent capital base. This allows the firm to participate in unique transactions with greater flexibility. The hedge fund is run by both Glenn Fuhrman and John Phelan and has a portfolio value of $585.3 million.

MSD Capital is also bullish on Asbury Automotive Group Inc (NYSE:ABG), with a stake of 2.6 million shares worth $138.6 million. It also holds approximately 765,700 shares worth $104.1 million of PVH Corporation (NYSE:PVH). Another significant holding of MSD Capital is Delphi Automotive Plc (NYSE:DLPH). It owns 1.3 million shares in the company, which is equivalent to $79.0 million.

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