August 25th, 2014, AnnouncemenT
On a fine Monday morning, New York Stock Exchange (NYSE) starts its regular trading with a slow picks of shares in primary stocks. At 09.35, investors start buying Burger King and Tim Hortons stocks, surges to its best high price of $32.40(19.5% ) and $74.72 (18.9% ) per share. Behind this high drama in floor of NYSE, there was a one of the key announcement rocked. Burger King Worldwide Inc., an American based fast food chain and Tim Hortons Inc., Canadian based coffee and doughnut chain combined announced news of potential merger seeing both on the grounds of market strategic and largest food chain in global market. With approximately $23 billion in ...view middle of the document...
As an independent brand within the new company, this transaction will enable us to move more quickly and efficiently to bring Tim Hortons iconic Canadian brand to a new global customer base. At the same time, our customers, employees, franchisees and fellow Canadians can all rest assured that Tim Hortons will still be Tim Hortons following this transaction, including our core values, employee and franchisee relationships, community support and fresh coffee." - Marc Caira, President and CEO of Tim Hortons
Burger king â€“ KING OF HAMBURGERS
Burger King, often abbreviated asÂ BK, is a globalÂ chainÂ ofÂ hamburgerÂ fast food restaurantsÂ headquartered inÂ unincorporated Miami-Dade County, Florida, United States. The company began in 1953 as Insta-Burger King, aÂ Jacksonville, Florida-based restaurant chain. After Insta-Burger King ran into financial difficulties in 1954, its two Miami-based franchisees,Â David EdgertonÂ andÂ James McLamore, purchased the company and renamed it Burger King. Over the next half century, the company would change hands four times, with its third set of owners, a partnership ofÂ TPG Capital,Â Bain Capital, and Goldman Sachs Capital Partners, taking it public in 2002. In late 2010,Â 3G CapitalÂ of Brazil acquired a majority stake in BK in a deal valued atÂ US$3.26 billion. The new owners promptly initiated a restructuring of the company to reverse its fortunes. 3G, along with partnerÂ Berkshire Hathaway.
At the end of fiscal year 2013, Burger King reported it had over 13,000 outlets in 79 countries; of these, 66 percent are in the United States and 99 percent areÂ privately owned and operatedÂ with its new owners moving to an entirely franchised model in 2013. BK has historically used several variations ofÂ franchisingÂ to expand its operations. The manner in which the company licenses its franchisees variesÂ dependingÂ on the region, with some regional franchises, known asÂ master franchises, responsible for selling franchise sub-licenses on the company's behalf. Burger King's relationship with its franchises has not always been harmonious. Occasional spats between the two have caused numerous issues, and in several instances the company's and its licensees' relations have degenerated into precedent-settingÂ court cases.
TheÂ Burger King menuÂ has expanded from a basic offering of burgers, French fries, sodas, and milkshakes in 1954, to a larger, more diverse set of product offerings. In 1957, theÂ WhopperÂ was the first major addition to theÂ menu; it has since become Burger King's signature product
Burger king â€“ BUSINESS STRATEGY
Burger King believe there are significant opportunities for our Company and the entire Burger King system by:
Driving sales and traffic in the U.S. and Canada: We have identified the following four pillars that we believe will enable us to drive future sales and traffic in the U.S. and Canada:
The strength of our menu has been built...