Tim Hortons: Buy Its Shares To Win
Kenny Yang • 25 Comments
Kenny Yang • 25 Comments
Tue, Feb. 16, 1:01 PM
- Restaurant Brands International (QSR +5.3%) recorded strong comparable-stores sales growth in Q4. The Tim Hortons chain comp +6.3% (constant currency) came in well-ahead of estimates and compares nicely to Starbucks, while Burger King's comp of 3.9% looked solid in the face of pressure in the U.S. from McDonald's All-Day Breakfast.
- Tim Hortons was around the 6% mark for U.S., Canada, and its international business.
- Burger King was led by a 9% comp gain for the Latin America region.
- Adjusted EBITDA was up 25% Y/Y on an organic basis to $443M.
- Previously: Restaurant Brands beats by $0.05, beats on revenue (Feb. 16 2016)
Tue, Feb. 16, 9:13 AM| Tue, Feb. 16, 9:13 AM | 1 Comment
Nov. 2, 2015, 10:12 AM
- Restaurant Brands International (NYSE:QSR) is down 1.9% in morning trader to lag all restaurants stocks except for Chipotle which is reeling from an E. coli outbreak.
- A RBC Capital note in which it mentioned some market share loss for the Burger King chain may be factoring in. QSR was lowered to Sector Perform by RBC as it cited traffic gains by Wendy's and McDonald's.
- Previously: Wendy's upgraded by RBC Capital with traffic on the rise (Nov. 02 2015)
Oct. 20, 2015, 1:00 PM
- Casual dining stocks trade lower after Brinker's International's Q3 report showed traffic weakness.
- Ignite Restaurant GRoup (IRG -1.4%), Texas Roadhouse TXRH, Darden Restaurants (DRI -2.5%), Buffalo Wild Wings (BWLD -1.8%), and Chuy's Holdings CHUY are some of the names showing the sharpest drops.
- The QSR sub-sector is having a better day with the Yum split and Sonic same-restaurant sales sizzler leading the way. Jack in the Box (JACK +1.8%) and Restaurant Brands International (QSR +1.1%) are notable gainers on a down market day.
Aug. 18, 2015, 3:09 PM
- Restaurant companies banking on high-growth concepts are trading lower than market averages today.
- Sentiment is poor on Zoe's Kitchen (ZOES -6.9%), El Pollo Loco (LOCO -3%), Bojangles (BOJA -2.9%), Chuy's Holdings (CHUY -2%), Noodles (NDLS -2.1%), Panera Bread (PNRA -3%), and Restaurant Brands International (QSR -1.9%). Even fast-casual superstar Chipotle (CMG -1%) is a bit weak.
- Restaurant traffic fell 1.2% in July on a comparable-store basis, according to Black Box Intelligence.
- McDonald's which is dialing back moderately the number of U.S. stores it operates is moving the other direction.
- Previously: McDonald's at 13-month high on turnaround hopes (Aug. 18 2015)
Aug. 6, 2015, 12:19 PM
- The hamburger sector is trading off despite Jack in the Box (JACK -5.8%) and Habit Restaurants (HABT -11.2%) both reporting strong Q2 same-store sales growth.
- Traders think some of the stocks are blowing off steam after recent gains, although worries on the ability of operators to pass off labor and food input costs have also crept up.
- The burger slide is hitting Wendy's (WEN -1.8%), Sonic (SONC -7.2%), Burger King owner Restaurant Brands (QSR -1.5%), and Shake Shack (SHAK -7.3%). McDonald's (MCD) is holding steady with its dividend yield continuing to be a strong backstop.
- Previously: Habit Restaurants lower after earnings (Aug. 06 2015)
- Previously: Strong comp sales at Jack in the Box (Aug. 05 2015)
May 4, 2015, 11:40 AM
- There's a decent little hamburger rally underway, although it doesn't include sector giant McDonald's.
- Habit Restaurants (HABT +3.4%), Shake Shack (SHAK +5.4%), Jack in the Box (JACK +0.8%), Restaurant Brands (QSR +1.5%), Wendy's (WEN +2.4%), and Sonic (SONC +0.8%) are out all ahead of the Golden Arches on its turnaround day.
- Previously: McDonald's unveils turnaround plan
- Previously: McDonald's lower after detailing turnaround strategy
Jan. 8, 2015, 11:26 AM
- Citi takes a bullish view on select names in the restaurant sector.
- Wendy's (WEN +1%) is initiated at Buy with a $11 price target. Analyst Gregory Badishkanian sees some of the company's initiatives helping to draw in millennials.
- Coverage on Chipotle (CMG +3.5%) is assumed again at a Buy with a $809 PT. Shares of CMG are at an all-time high after taking out $700 earlier this week.
- The investment firm is also backing Restaurant Brands (QSR +2.7%) and Brinker International (EAT +1.1%) for gains with resumed Buy ratings.
Oct. 15, 2014, 2:17 PM
- The ten companies in the Russell 1000 in which hedge funds hold the biggest stakes are down an average of 16% since that index hit an all-time high on September 18, according to Bloomberg. This stands against a slide in the index of just 7%.
- “The reactive selling is institutional,” says a portfolio manager. “Now redemptions are coming in, and that’s putting more pressure on the market. All these things are in the mix for perhaps exacerbating the move.”
- The list: Burger King Worldwide (BKW -4.5%), CVR Energy (CVI -2.4%), Spectrum Brands Holdings (SPB -3.3%), Ally Financial (ALLY -2.6%), Zynga (ZNGA -1.3%), NorthStar Realty (NRF -1.9%), Seventy Seven Energy (SSE -6.6%), Platform Specialty Products (PAH -1.4%), and SunEdison (SUNE -0.6%).
Oct. 7, 2014, 5:40 PM
Oct. 6, 2014, 8:38 AM
- There's a head-scratching analyst move in the restaurant sector with Morgan Stanley upgrading Burger King Worldwide (NYSE:BKW) to Overweight and downgrading McDonald's (NYSE:MCD) to Equalweight.
- MS likes the positive impact that could be seen from a Timothy Hortons-Burger King combination, but some skeptics think the same underlying challenging QSR traffic trends are in play for both companies.
- Premarket: BKW +1.7%, MCD -0.6%.
Aug. 25, 2014, 1:33 PM
- Shares of Burger King Worldwide (NYSE:BKW) are still on an uphill climb, up 24.9% to $33.89 on volume 3000X normal trading activity.
- The rally looks outsized to some restaurant analysts who think fundamentals and synergies don't support the elevated share price. Plans for financial engineering and tax benefits could hit potholes down the road, they warn.
- There's also the chance that a bidding war could erupt for Tim Hortons and force Burger King to dig deeper, notes SA contributor Stock Traders Daily.
- BKW-THI timeline
Aug. 25, 2014, 12:46 PM
Aug. 25, 2014, 9:11 AM
Aug. 25, 2014, 8:03 AM
- A strategic reason for Burger King Worldwide (NYSE:BKW) to snap up Tim Hortons (NYSE:THI) is the potential for the company to use its deep global development experience to help the coffee chain grow in new global markets
- That plan could see Tim Hortons compete against Starbucks (NASDAQ:SBUX) in more regions, including a deeper foray into the U.S.
- Shares of Tim Hortons (THI) are flying in premarket trading, up 17.6%.
Aug. 25, 2014, 6:53 AM
- Shares of Burger King Worldwide (NYSE:BKW) shoot higher in early trading after the company confirms it's in talks to buy Canadian restaurant operator Tim Horton (NYSE:THI).
- Combined, the two restaurant chains operate 18K outlets and churn up $22B in sales.
- The early take from restaurant analysts is that the merger could create enormous synergies, although a hit to the Burger King brand would be risked by relocating its headquarters to Canada to seek out lower taxes.
- 3G Capital is the majority owner of Burger King.
- BKW +7.0% premarket to $29.01.
Restaurant Brands International, Inc. is a holding company, which engages in the operation of fast food chains through its subsidiaries, Tim Hortons Inc. and Burger King Worldwide, Inc. The company operates its business through the following segments: United States and Canada, Europe, the Middle... More
Country: United States
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