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Warren Buffett's Berkshire Hathaway Sells Off Its Restaurant Brands Stake

By Eric Volkman – Aug 14, 2020 at 7:52PM

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As per usual, no reason was provided for one of the renowned investor's latest stock divestments.

Although he's a burger-and-soda kind of guy, Warren Buffett will most likely not be spotted at a Burger King anytime soon. A regulatory filing submitted Thursday night by the legendary financier's investment vehicle Berkshire Hathaway (BRK.A -0.06%) (BRK.B -0.95%) revealed that it has completely sold its stake in Restaurant Brands International (QSR -2.23%), the fast-food chain's owner.

Berkshire Hathaway is required to provide updates to the Securities and Exchange Commission (SEC) every quarter about its portfolio of publicly traded companies. These reports are closely scrutinized by many investors and can often affect sentiment on a stock, depending on whether Berkshire adds more of it to its holdings, reduces its stake, or keeps it level.

Warren Buffett.

Image source: The Motley Fool.

While this makes it easy for the public to track changes in the portfolio, the reason or reasons for Berkshire's move in a stock are often mysterious. Neither the company nor Buffett, its longtime CEO, immediately reveal their motivations. 

Like many investors, Buffett may generally be souring on dining stocks given the hammering they've taken during the pandemic. Yet Restaurant Brands International hasn't been doing badly, all things considered. It has managed to recover its revenue to around 90% of the sales levels it had before the outbreak spread around the world. At the end of the company's second quarter, 93% of its restaurants were open for takeout and delivery at the very least.

Perhaps that's why investors shrugged off Buffett's divestment on Friday. Restaurant Brands International's shares ticked up by 0.1% on the day. Meanwhile, both classes of Berkshire stock fell marginally.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Berkshire Hathaway (B shares) and recommends the following options: long January 2021 $200 calls on Berkshire Hathaway (B shares), short January 2021 $200 puts on Berkshire Hathaway (B shares), and short September 2020 $200 calls on Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy.

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Stocks Mentioned

Berkshire Hathaway Inc. Stock Quote
Berkshire Hathaway Inc.
$406,470.00 (-0.06%) $-230.00
Berkshire Hathaway Inc. Stock Quote
Berkshire Hathaway Inc.
$267.02 (-0.95%) $-2.56
Restaurant Brands International Inc. Stock Quote
Restaurant Brands International Inc.
$53.18 (-2.23%) $-1.21

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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