DineEquity (DIN-N)

There's Chipotle, Darden and others, and then there's another group including DIN that is not doing well. A bifurcation in restaurants. 

(A Top Pick August 26, 2016. Down 30.04%). He sold it early last year. Bought it on valuation catalyst. Owns Applebee’s and IHOP. They were expanding both brands into Latin America and these should appeal to the emerging middle class in Latin America. However, DIN could not execute this well, and he sold the stock soon after its CEO left.

(A Top Pick July 18/16. Down 34%.) Had bought this as a deep value play, but the stock went from cheap to cheaper. Sold his holdings at around $55. Today it is trading at around 10X Price to Earnings with a dividend close to 9%.

The stock had been in a declining trend for a couple of years. Now it has fallen like a brick.

This owns Appleby’s and IHOP restaurants. They are fairly saturated in the US, and the growth opportunity is their expansion into some of the emerging-market countries, especially Mexico. Recently sold his holdings because he was tired of waiting for management to execute. The stock is cheap, and continues to get cheaper. He doesn’t like the selloff that it is experiencing, and doesn’t see any stability in sight. Wait for the freefall to end, or just take a half position. Dividend yield is close to 7%.

This is the parent company of Appleby and IHOP. The opportunity is that 97% of revenue comes in the US, so they can expand outside which is exactly what they are doing. They recently signed agreements for 77 IHOP locations and about 7 Applebee’s locations in Latin America. He likes this because we have only recently started seeing the middle-class form in the emerging markets. Trading at around 13X PE, and you are getting paid about 4.7% in dividends.

iHop. They generate all of their revenue out of the US and now they are going into emerging markets. They signed some agreements and are opening locations in Mexico. Yield is 4%. PE is 12-13.

The parent of IHOP (US) and Applebee’s chains. Sold off considerably last year and this is now a good entry point. Trading at 13X. Most revenue is coming from the US, and they are expanding into the emerging market countries. Recently announced an agreement to build out 77 IHOPs and Applebee’s in Latin America. Dividend yield of 4.47%.