Tim Hortons Inc

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  • uploads///THI
    Consumer

    Farallon Capital initiates position in Tim Hortons

    Farallon Capital Management started a new position in Tim Hortons Inc. (THI) during the third quarter of 2014. The position accounted for 2.62% of the fund’s 3Q14 portfolio.

    By Diana Key
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  • Earnings Report

    Starbucks’ year-to-date returns

    As of November 2014, Starbucks’ (SBUX) year-to-date return was 3.3%, compared to returns of 10.9% on the Standard & Poors (or S&P) 500 Index and 9.5% on the restaurant segment.

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    Profit margins keep rising for Starbucks

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    Starbucks’ strategy: Aggressive unit growth

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  • Earnings Report

    An overview of Starbucks’ 4Q14 earnings

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  • Earnings Report

    Tim Hortons’ year-to-date returns as of November 2014

    As of November 2014, Tim Hortons’ (THI) year-to-date (or YTD) returns were 54.3%. The S&P 500 had returns of 10.9%. The restaurant industry had returns of 9.1%.

    By Adam Jones
  • Earnings Report

    Why THI’s shares didn’t change after the earnings release in 3Q14

    Tim Hortons (THI) reported its earnings before the market opened on November 5. Shares started trading at $80.59. This was flat from the previous day’s closing of $80.57.

    By Adam Jones
  • Earnings Report

    Tim Hortons faced a higher effective tax rate in 3Q14

    THI had an effective tax rate of 34% in the third quarter. Its tax rate increased from 28.3% in the same quarter last year. The increase was due to the company’s favorable tax impact last year.

    By Adam Jones
  • Earnings Report

    Must-know: Tim Hortons’ segment-wise revenue in 3Q14

    Canada is THI’s main segment. It accounts for 82% of THI’s revenues. It reported $688 million in revenues in 3Q14—this is 5.6% growth year-over-year (or YoY).

    By Adam Jones
  • Earnings Report

    Tim Hortons’ unit growth and channel development

    Besides product development and menu innovation, a restaurant can also boost its sales by growing units and penetrating deeper into the markets. THI added 44 new restaurant units during the 3Q.

    By Adam Jones
  • Earnings Report

    What do Tim Hortons’ Double Double Card and TimmyMe app mean?

    THI launched a new mobile application. Restaurants across North America have bar code scanners. Customers can use the TimmyMe app to pay for their orders.

    By Adam Jones
  • Earnings Report

    Why Tim Hortons’ same-store sales grew in 3Q14

    THI’s same-store sales increased 6.8% in the US. Its same-store sales in Canada grew 3.5%. The same-store sales growth in Canada was a result of the company ‘s new product launches.

    By Adam Jones
  • Earnings Report

    Tim Hortons’ same-store sales impress in 3Q14

    THI’s same-store sales in the US were driven by higher average unit volume from the breakfast daypart. The breakfast daypart increased customer traffic during non-peak hours.

    By Adam Jones
  • Earnings Report

    Analyzing Tim Hortons’ 3Q14 earnings

    THI’s second quarter earnings were released on November 5. It reported a diluted earnings per share (or EPS) of $0.68—compared to an EPS of $0.72 in the same quarter last year.

    By Adam Jones
  • Company & Industry Overviews

    Unit growth equally important for restaurants as same-store sales

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    By Adam Jones
  • Company & Industry Overviews

    How technology helps drive restaurant sales

    Increasingly, restaurants are using technology to increase customer traffic and drive same-store sales.

    By Adam Jones
  • Company & Industry Overviews

    Restaurants innovate menus to stay relevant

    Restaurants often innovate their menus to remain relevant to their customers. This also helps restaurants keep up with shifting trends in the industry.

    By Adam Jones
  • Consumer

    Domino’s offers highest year-to-date returns

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  • Consumer

    Domino’s management guidance on food costs, capex, and more

    Management anticipates the effective tax rate to be in the range of 37% to 38% for the “foreseeable future.” Corporate tax rates in the U.S. are high, and force some companies to move their headquarters to countries offering lower tax rates.

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    By Adam Jones
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    Darden’s food costs, labor costs, and selling and general expenses

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    By Adam Jones
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  • Consumer

    Why Dunkin’s year-to-date return is negative

    As of September 11, 2014, Dunkin’ Brands Group’s (DNKN) year-to-date (or YTD) return was -8.2%—compared to returns of 9.9% on the S&P 500 Index and 1.37% for the restaurant industry. First quarter results were disappointing. Dunkin’ Donuts U.S. same-store sales grew by only 0.5%. They were affected by severe weather conditions in U.S.

    By Adam Jones
  • Consumer

    Must-know: Dunkin’s management’s guidance into the future

    Management expected a full year same-store sales for Dunkin’s U.S. segment between 3%–4%. However, there was a weak performance in second quarter. As a result, management lowered the guidance to same-store sales between 2%–3% on a full year basis. Management maintained the same-store sales guidance of 1%–3% for Baskin-Robbins U.S.

    By Adam Jones
  • Consumer

    Must-know: Dunkin’s major costs of operations

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    By Adam Jones
  • Consumer

    Must-know: What strategies are driving Dunkin’ Brands?

    Same-store sales are driven by two components—transaction and traffic. Transaction is driven by pricing and products offered to the customer—or mix. For Dunkin’ Brands (DNKN), transaction contributed to more than half of same-store sales growth. To increase the traffic, the company introduced new items and offers.

    By Adam Jones
  • Consumer

    Tim Hortons’ effective tax rates and the Burger King merger

    Burger King (BKW) recently announced that it will acquire Tim Hortons (THI). In our acquisition series, we explained that this deal was structured as a tax inversion deal. Let’s take a look at what Tim Hortons’ effective tax rate has been over years.

    By Adam Jones
  • Consumer

    Must-know: Why management initiatives affected Tim Hortons’ sales

    Tim Hortons (THI) has introduced new items in its menu, opened new locations, implemented a digital strategy, and pursued other initiatives to grow revenue. Let’s now see how effective these initiatives have turned out for sales.

    By Adam Jones
  • Consumer

    Why Tim Hortons introduced a mobile app and loyalty cards

    Along with introducing new products like those we discussed in the previous part of this series, Tim Hortons (THI) is also testing different revenue channels and payment methods.

    By Adam Jones
  • Consumer

    Must-know: Tim Hortons’ unit growth and other key initiatives

    Besides product development and menu innovation, which we discussed in the last part of this series, a restaurant may also boost its sales by growing units and penetrating deeper into the markets.

    By Adam Jones
  • Consumer

    Why Tim Hortons’ same-store sales grew through menu innovation

    Restaurants often introduce new products in their menu and use promotional campaigns to drive customers into the restaurants.

    By Adam Jones
  • Consumer

    Why Tim Hortons’ same-store sales are an important value driver

    Tim Hortons (THI) had a total of 4,546 restaurants as of the second quarter’s end. About 79%, or 3,630, of Tim Hortons restaurants are in Canada. About 19%, or 866, restaurants are in the U.S.

    By Adam Jones
  • Consumer

    Burger King’s effective tax rates and the Tim Hortons acquisition

    Burger King’s (BKW) acquisition of Tim Hortons (THI) will make it the third-largest restaurant chain in terms of market capitalization, after McDonald’s (MCD) and Yum! Brands (YUM).

    By Adam Jones
  • Consumer

    Burger King’s 2nd quarter 2014 tax rates and profit margins

    Net income is used to calculate earnings per share (net income over weighted average shares outstanding). It improves based on an improved cost metric. Let’s see how Burger King’s (BKW) net income has done over the year.

    By Adam Jones
  • Consumer

    How Burger King is financing its Tim Hortons acquisition

    The Tim Hortons (THI) acquisition’s value of about $12.5 billion is more than Burger King’s (BKW) market capitalization of $10.9 billion as of August 26.

    By Adam Jones
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