Tim Horton now has $7.2 billion market cap

Discussion in 'Stocks' started by canadian_dude, Mar 24, 2006.

  1. Well, it opened at $32 and looks to have sunk to about $30 by 11 AM.

    By my calculations, if they raised $672 million at $23.16 per share, representing 18% of the company, that means the whole company THI has a market cap of $7.2 billion at a $30 stock price.

    The interesting thing is Wendy's only has a market cap of $7.3 billion and they still own 82% of the company (meaning their remaining stake in THI is worth $5.9 billion of that $7.3 billion Wendy's market cap).

    Is THI really worth a $7.2 billion market cap? I doubt it.

    Here are some comparison market caps for other food companies:

    McDonalds $42 B
    Krisy Kreme $500 M
    Bob Evans $1 B
    Checkers $168 M
    Dennys $407 M
    Dominoes $1.9 B
    IHOP $900 M
    Outback $3.3 B
    Papa John $1 B
    Starbucks $28 B
    YUM Brands $13 B

    The only way THI is worth $7.2 B is if this is truly a growth company. We'll see if they can deliver on that promised growth.
  2. bitrend


    Let the future to decide. THI has tremendously success in Canada. It really becomes another Maple Leafs for Canada. You just say that you drink Tim Hortons coffee then they know you're canadian. I strongly hope that this success will continue in the US.

  3. Im sure the Arbs will be putting the long WEN short THI spread on. Seems like a no brainer

  4. How do you short THI? IPO's arent usually shortable. Although if you look at the WEN daily against THI theyve been trading together. I def saw people trading them together though. As THI was making new lows you could see people shorting WEN instead. I traded 100 shares of it today =). Anyone else touch it?
  5. Wait till after they come out with their second earnings report. Whats up with the Streets fascination with donuts, remember Krispy Kreme, you would have they jusy invented the Warp drive, it was the stock that everyone just had to own. I call them donots, as in do not buy them.

    ...Rennick out
  6. Exodus


    BUY and HOLD.
  7. Kensho


    From their website:
    "As of February 2006, there are over 290 Tim Hortons locations in the United States. These are situated in Michigan, Ohio, New York, West Virginia, Kentucky, Maine, Rhode Island, Connecticut, Massachusetts and Pennsylvania. Future expansion and opportunities will continue in these markets for the next several years."

    Do they not plan on expanding to other states? BTW the capital requirement to open a franchise is 300-500k. I know its all location, location, location but how much you think the average Tim Horton's franchise can net. As a new trader I'd love to have a primary business with steady income and swing trade on the side until I get good enough to manage my own fund (if that ever happens - if not at least I have a franchise).
  8. pbw


    don't forget what happened to Krispy Creme when they came into Canada. Big profits and news at first-- now bankrupt..
  9. in canada I'm pretty sure there is a huge waiting list for franchises. owning a tim hortons is akin to winning the lottery.