How Burger King Worldwide Inc (BKW)’s Acquisition of Tim Hortons Inc. (USA) (THI) Impact its Business?

In a surprise move today, Burger King Worldwide Inc (NYSE:BKW) announced that it is acquiring the Canadian Coffee-and-Doughnut shop Tim Hortons Inc. (USA) (NYSE:THI) in an $11 Billion deal and is also going to move its headquarter to Canada. While many on the Street were expecting something like this owing to the reduced pace of growth of Burger King Worldwide Inc (NYSE:BKW), most didn’t felt that the acquired company would be Tim Hortons Inc. (USA) (NYSE:THI). Gavin O’Neill, one of Burger King Worldwide Inc (NYSE:BKW)’s franchisees discussed how this move is going to impact the business of the company on CNBC, recently.

Burger King Worldwide Inc (NYSE:BKW)

O’Neill said that he can’t speak for every Burger King Worldwide Inc (NYSE:BKW) franchisee, but according to him this acquisition is not going to impact his business in a significant way. After Burger King Worldwide Inc (NYSE:BKW) announced this acquisition, Ohio Senator, Sherrod Brown, asked people to ditch Burger King Worldwide Inc (NYSE:BKW)’s outlets and rather go for other competing outlets.

When asked about this, O’Neill said that his franchise is just another small business is Ohio, similar to the other competitors. According to him anything that negatively impacts Burger King Worldwide Inc (NYSE:BKW), impacts his franchisee too in the form of reducing its ability to pay taxes and hurting the employees that work under the franchisee. O’Neill revealed that as of now he hasn’t seen the boycott declared by the senator creating any effect on the sales at his outlet.

O’Neill also made an appeal to all the loyal customers of Burger King Worldwide Inc (NYSE:BKW) on behalf of all the franchisees of Burger King Worldwide Inc (NYSE:BKW), saying that his outlet was also like any other small business in the U.S., which pays its taxes, Burger King Worldwide Inc (NYSE:BKW)’s franchisee employ hundreds of thousands of employees across the U.S. and that the franchisees are completely independent of Burger King Worldwide Inc (NYSE:BKW).

Disclosure: None

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