Well this article outlines how most analysts seem to think that Tim Horton’s will be spun out of the Wendy’s chain and go public (maybe today?). Is it worthwhile buying into this chain? Don’t really know, investing is not really my strength (ranting about the obvious is more my style, as my readers know).
I can only comment that in my part of Ottawa 10 years ago there were NO Tim Horton outlets, and now 10 years later there are 5 with more coming I think. Now yes, we are growing quickly, but I get the feeling that market saturation is coming soon (if not now) for Tim Horton’s, so growth of outlets is an argument I wouldn’t buy, if given as to why to buy this stock. Will Tim Horton’s go under? There are a LONG list of companies that will go under before Timmy’s, so I think that it is safer that way, but what the heck do I know?
I am not buying this stock, but that is mostly because I am apathetic when it comes to investing these days, I am more interested in paying bills!
A better question is, maybe it is time to get rid of your Wendy’s shares? If they are spinning Tim Horton’s out, where is THEIR income going to come from? –C8j