Tim Hortons: A new rival for Starbucks?

Emerging as Canada's top coffee house from theconsumers can relate too. If such a proposition
famous Toronto Maple Leaf superstar, Tim Hortons(which is very likely) is able to be preformed, look for
(THI) has slowly emerged to become a topshares of Tim Hortons to skyrocket with increasing
competitor among not only coffee stops, butfundamentals making this company a potentially
restaurants as well. Serving items ranging from topincredible investment at its current price with an
soups to salads to sandwiches among the commonunlimited ceiling of how far it can grow, making Tim
accessories of pastries, desserts, and of courseHortons an excellent long term investment.For
coffee, Tim Hortons looks to gain some marketspeculators however, Tim Hortons may not be the
share of such a booming industry.Recently spun offmost favorable opportunity in terms of the short run.
from Wendy's into its newly created public sharingWith the United States close to entering into a
market, Tim Hortons is pretty much even fromrecession when consumers will be paying less for
where it started last March. While some investorsluxury items such as high priced coffee in favor of
may argue that the company is poor for the lack ofmore bargain products, companies like Tim Hortons
movement, typically, with the exclusion of financialmay not be so desirable for investors looking to cash
stocks, most newly proposed IPOs tend to be pricedin after a few months to a year. Fundamentals do
at too high of a price relative to the demand oflook poor for this company as well which may make
potential shareholders and thus fall during theit less desirable for institutions. However, the fact is
beginning stages of the company's initiation. In thethat since Tim Hortons is relatively new, it will take
case of Tim Hortons, with the added bonus of asome time for revenue or profit to grow
cease in a shareholder relationship with Wendy's, thissubstantially, and there may be some negative
company, free to move at will, has the potential withactivity in terms of margins (especially operating
the added shares from Wendy's shareholders toones) while the company initially is put on market.
reach maximum capital gains by looking at theHowever, if the company does expand as suggested
potential this company has.Situated in Canada withand achieves economics of scale, fundamentals
few other locations in Maine and other northernshould not be a problem whatsoever.Thus, with a
American States, if Tim Hortons is able to sustainstrong potential highly accessible for this company
favorable margins relative other competitors anddesiring a spark for amazing returns, should be a key
expand into Southern portions of the United Statesplayer in the stock market in the coming five to ten
and other nations, Tim Hortons will not onlyyears. I would not recommend this stock for short
experience favorable economics of scale, butterm buyers, especially at a price of 27 points, but
excellent fundamentals in return. With pricesfor long term investors, even at 27, I would
considerably lower for items such as coffee andadvocate taking the risk and seeing your profits sore
pastries, if Tim Hortons is able to expand as awith a trusted company that Tim Hortons entails in
multinational corporation, consumers will absolutely bethe distant future.Dennis Biray presents advice on all
making the switch from giants like Starbucks to Timkinds of topics ranging from finance and investing to
Hortons, which already has a favorable namefitness to sports.