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

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

The 50 Best Personal Finance Blogs

Most Expensive Apartments in New York City

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!