Boston, MA 08/26/2014 (wallstreetpr) – In a deal between Tim Hortons Inc. (USA) (NYSE:THI) and Burger King Worldwide Inc (NYSE:BKW), it seems like everyone is in the win-win situation. In the merger between two fast food chains, Tim Hortons shall be giving a push to the menu of Burger King by infusing some freshness. Burger King has been trailing behind McDonald’s Corporation (NYSE:MCD), especially in the breakfast business, for past few years.
Refreshment to Burger King’s Menu
Burger King announced recently that it would acquire Tim Hortons Inc. (USA) (NYSE:THI). Doing so would mean adding coffee brand to the menu, which is renowned among Canadians and also a few Americans. This deal will allow Burger King to revitalize its menu, which trailed behind because of McDonald’s Egg McMuffins and also Starbucks Corporation (NASDAQ:SBUX)’s scones and lattes. Additionally, Burger King would be able to start up at Tim Hortons locations in 98 countries, where it operates at present.
Tax Benefits
The deal has attracted attention mostly because of vital tax inversion, wherein Burger King Worldwide Inc (NYSE:BKW) would be able to save costs by shifting its headquarters to Canada.
In the meanwhile, Tim Hortons Inc. (USA) (NYSE:THI) would be able to make its place right in the heart of Burger King’s menu in order to appeal to the diners who look for higher-end coffee. In this context, Sikich Investment Banking’s partner-in-charge at Chicago, Christopher Geier said, “This is obviously a pretty strategic acquisition for them to try to get back on track and try to find more customers in the breakfast space.”
Separate Chains; Shared benefits
Though the two restaurants shall operate as separate chains only, but the benefits of this deal are being enjoyed by both. While Burger King Worldwide Inc (NYSE:BKW) will use Tim Horton’s help to liven-up its menu, the latter, in the meanwhile, will be able to make a wider presence, shifting from the geographical demographics of Canada.
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