Tim Horton's Inc.(NYSE:THI) may not be completely immune to the influence of a waning economy, but its market positioning, in addition to a habit-forming
bestselling product, should be an asset during leaner times, analysts say.
"Tim Hortons derives more than 40% of its sales from coffee, an inexpensive (and addictive) product," analyst Stephen Boland of Odlum Brown said in a note to clients."The habitual nature of visits combined with relatively low product cost should make it less sensitive than many other discretionary items."
The company's balance sheet is also in "excellent" condition, he noted. He maintained his buy rating and $42 target price on the shares.