LisaSharleen
November 21st, 2006, 05:22 PM
From Wikipedia:
Tim Hortons: (TSX (http://en.wikipedia.org/wiki/Toronto_Stock_Exchange): THI (http://www.tsx.com/HttpController?GetPage=QuotesViewPage&QuoteSymbol_1=THI), NYSE (http://en.wikipedia.org/wiki/New_York_Stock_Exchange): THI (http://www.nyse.com/about/listed/lcddata.html?ticker=THI)) is a fast food (http://en.wikipedia.org/wiki/Fast_food) restaurant chain founded in Hamilton, Ontario (http://en.wikipedia.org/wiki/Hamilton%2C_Ontario), Canada (http://en.wikipedia.org/wiki/Canada) with locations in Canada (http://en.wikipedia.org/wiki/Canada) and the eastern United States (http://en.wikipedia.org/wiki/United_States). It is the largest coffee (http://en.wikipedia.org/wiki/Coffee) and doughnut (http://en.wikipedia.org/wiki/Doughnut) chain in Canada. In addition to its coffee and doughnuts, Tim Hortons is also well-known for its Timbits (http://en.wikipedia.org/wiki/Timbits), bagels (http://en.wikipedia.org/wiki/Bagel), soups (http://en.wikipedia.org/wiki/Soup), and sandwiches (http://en.wikipedia.org/wiki/Sandwich).
Tim Hortons franchise stores are plentiful in Canadian cities and towns. The chain has expanded aggressively across most regions of Canada. As of October 5 (http://en.wikipedia.org/wiki/October_5), 2006 (http://en.wikipedia.org/wiki/2006), there were 2,638 outlets in Canada, 305 in the United States and one outlet in Kandahar, Afghanistan (http://en.wikipedia.org/wiki/Kandahar%2C_Afghanistan) where Canadian troops are stationed.Tim Hortons has supplanted McDonald's as Canada's largest food service operator; it has nearly twice as many Canadian outlets as McDonald's (http://en.wikipedia.org/wiki/McDonald%27s), and its system-wide sales surpassed those of McDonald's Canadian operations in 2002. The chain accounted for 22.6% of all fast food industry revenues in Canada in 2005.Tim Hortons commands 76% of the Canadian market for baked goods (based on the number of customers served) and holds 62% of the Canadian coffee market (compared to Starbucks (http://en.wikipedia.org/wiki/Starbucks), in the number two position, at 7%).
The first "Tim Horton" (the "s" came later) store opened in 1964 in Hamilton (http://en.wikipedia.org/wiki/Hamilton%2C_Ontario), Ontario (http://en.wikipedia.org/wiki/Ontario). The business was founded by Tim Horton (http://en.wikipedia.org/wiki/Tim_Horton), who played in the National Hockey League (http://en.wikipedia.org/wiki/National_Hockey_League) from 1949 until his death in a car accident in 1974. Soon after Horton opened the store, he met Ron Joyce (http://en.wikipedia.org/wiki/Ron_Joyce), a former Hamilton police constable. In 1965, Joyce's entrepreneurial spirit had come to the fore and he took over the fledgling Tim Horton Donut Shop on Ottawa Street North in Hamilton. By 1967, after he had opened up two more stores, he and Tim Horton became full partners in the business. Upon Horton's death, Joyce bought out the Horton family and took over as sole owner of the existing chain of forty stores. Joyce expanded the chain quickly and aggressively in geography and in product selection, opening the 500th store in Aylmer (http://en.wikipedia.org/wiki/Aylmer%2C_Quebec), Quebec (http://en.wikipedia.org/wiki/Quebec), in 1991.
Ron Joyce's aggressive expansion of the Tim Horton's business resulted in two major changes in the coffee and doughnut restaurant market: independent doughnut shops in Canada were virtually eliminated, and Canada's per-capita ratio of doughnut shops surpassed those of all other countries.
Ownership by Wendy's
In 1992, the owner of all Tim Hortons and Wendy's Restaurants (http://en.wikipedia.org/wiki/Wendy%27s_International%2C_Inc.) in Prince Edward Island (http://en.wikipedia.org/wiki/Prince_Edward_Island), Daniel P. Murphy, decided to open new franchise outlets for both brands in the same building in the town of Montague (http://en.wikipedia.org/wiki/Montague%2C_Prince_Edward_Island). Murphy invited Joyce and Wendy's chairman Dave Thomas (http://en.wikipedia.org/wiki/Dave_Thomas) to the grand opening of the "combo store", where the two executives met for the first time and immediately establishing a rapport.
Murphy's success with combining coffee and doughnuts with Wendy's fast food led to the August 8 (http://en.wikipedia.org/wiki/August_8), 1995 (http://en.wikipedia.org/wiki/1995) agreement that saw Wendy's International, Inc. acquire TDL Group. Joyce became the largest shareholder in Wendy's, even surpassing Thomas.TDL Group continued to operate as a separate subsidiary from its head office in Oakville, Ontario (http://en.wikipedia.org/wiki/Oakville%2C_Ontario), although Joyce eventually retired from active management to pursue other interests.
In late 2005, Wendy's announced it would sell between 15 and 18% of the Tim Hortons operations in an initial public offering (http://en.wikipedia.org/wiki/Initial_public_offering), which was completed on March 24 (http://en.wikipedia.org/wiki/March_24), 2006 (http://en.wikipedia.org/wiki/2006), and subsequently said it would spin off to shareholders its remaining interest by the end of 2006. Wendy's cited increased competition between the two chains and Tim Hortons' increasing self-sufficiency as reasons for its decision, but the company had been under shareholder pressure to make such a move because of the strength and profitability of the Tim Hortons brand.
Shares of the company began trading on March 24 (http://en.wikipedia.org/wiki/March_24), 2006 (http://en.wikipedia.org/wiki/2006), with an initial public offering (http://en.wikipedia.org/wiki/Initial_public_offering) of C$ (http://en.wikipedia.org/wiki/Canadian_dollar)27 per share, raising over $700 million in the first day of trading. On September 28 (http://en.wikipedia.org/wiki/September_28), 2006 (http://en.wikipedia.org/wiki/2006), Wendy's spun off the rest of its shares in Tim Hortons, by distributing the remaining 82% to its shareholders. On the same day, Tim Hortons added to Canada's benchmark stock-market indicator, the S&P/TSX Composite Index (http://en.wikipedia.org/wiki/S%26P/TSX_Composite_Index), and to the S&P/TSX 60 (http://en.wikipedia.org/wiki/S%26P/TSX_60).
Tim Hortons: (TSX (http://en.wikipedia.org/wiki/Toronto_Stock_Exchange): THI (http://www.tsx.com/HttpController?GetPage=QuotesViewPage&QuoteSymbol_1=THI), NYSE (http://en.wikipedia.org/wiki/New_York_Stock_Exchange): THI (http://www.nyse.com/about/listed/lcddata.html?ticker=THI)) is a fast food (http://en.wikipedia.org/wiki/Fast_food) restaurant chain founded in Hamilton, Ontario (http://en.wikipedia.org/wiki/Hamilton%2C_Ontario), Canada (http://en.wikipedia.org/wiki/Canada) with locations in Canada (http://en.wikipedia.org/wiki/Canada) and the eastern United States (http://en.wikipedia.org/wiki/United_States). It is the largest coffee (http://en.wikipedia.org/wiki/Coffee) and doughnut (http://en.wikipedia.org/wiki/Doughnut) chain in Canada. In addition to its coffee and doughnuts, Tim Hortons is also well-known for its Timbits (http://en.wikipedia.org/wiki/Timbits), bagels (http://en.wikipedia.org/wiki/Bagel), soups (http://en.wikipedia.org/wiki/Soup), and sandwiches (http://en.wikipedia.org/wiki/Sandwich).
Tim Hortons franchise stores are plentiful in Canadian cities and towns. The chain has expanded aggressively across most regions of Canada. As of October 5 (http://en.wikipedia.org/wiki/October_5), 2006 (http://en.wikipedia.org/wiki/2006), there were 2,638 outlets in Canada, 305 in the United States and one outlet in Kandahar, Afghanistan (http://en.wikipedia.org/wiki/Kandahar%2C_Afghanistan) where Canadian troops are stationed.Tim Hortons has supplanted McDonald's as Canada's largest food service operator; it has nearly twice as many Canadian outlets as McDonald's (http://en.wikipedia.org/wiki/McDonald%27s), and its system-wide sales surpassed those of McDonald's Canadian operations in 2002. The chain accounted for 22.6% of all fast food industry revenues in Canada in 2005.Tim Hortons commands 76% of the Canadian market for baked goods (based on the number of customers served) and holds 62% of the Canadian coffee market (compared to Starbucks (http://en.wikipedia.org/wiki/Starbucks), in the number two position, at 7%).
The first "Tim Horton" (the "s" came later) store opened in 1964 in Hamilton (http://en.wikipedia.org/wiki/Hamilton%2C_Ontario), Ontario (http://en.wikipedia.org/wiki/Ontario). The business was founded by Tim Horton (http://en.wikipedia.org/wiki/Tim_Horton), who played in the National Hockey League (http://en.wikipedia.org/wiki/National_Hockey_League) from 1949 until his death in a car accident in 1974. Soon after Horton opened the store, he met Ron Joyce (http://en.wikipedia.org/wiki/Ron_Joyce), a former Hamilton police constable. In 1965, Joyce's entrepreneurial spirit had come to the fore and he took over the fledgling Tim Horton Donut Shop on Ottawa Street North in Hamilton. By 1967, after he had opened up two more stores, he and Tim Horton became full partners in the business. Upon Horton's death, Joyce bought out the Horton family and took over as sole owner of the existing chain of forty stores. Joyce expanded the chain quickly and aggressively in geography and in product selection, opening the 500th store in Aylmer (http://en.wikipedia.org/wiki/Aylmer%2C_Quebec), Quebec (http://en.wikipedia.org/wiki/Quebec), in 1991.
Ron Joyce's aggressive expansion of the Tim Horton's business resulted in two major changes in the coffee and doughnut restaurant market: independent doughnut shops in Canada were virtually eliminated, and Canada's per-capita ratio of doughnut shops surpassed those of all other countries.
Ownership by Wendy's
In 1992, the owner of all Tim Hortons and Wendy's Restaurants (http://en.wikipedia.org/wiki/Wendy%27s_International%2C_Inc.) in Prince Edward Island (http://en.wikipedia.org/wiki/Prince_Edward_Island), Daniel P. Murphy, decided to open new franchise outlets for both brands in the same building in the town of Montague (http://en.wikipedia.org/wiki/Montague%2C_Prince_Edward_Island). Murphy invited Joyce and Wendy's chairman Dave Thomas (http://en.wikipedia.org/wiki/Dave_Thomas) to the grand opening of the "combo store", where the two executives met for the first time and immediately establishing a rapport.
Murphy's success with combining coffee and doughnuts with Wendy's fast food led to the August 8 (http://en.wikipedia.org/wiki/August_8), 1995 (http://en.wikipedia.org/wiki/1995) agreement that saw Wendy's International, Inc. acquire TDL Group. Joyce became the largest shareholder in Wendy's, even surpassing Thomas.TDL Group continued to operate as a separate subsidiary from its head office in Oakville, Ontario (http://en.wikipedia.org/wiki/Oakville%2C_Ontario), although Joyce eventually retired from active management to pursue other interests.
In late 2005, Wendy's announced it would sell between 15 and 18% of the Tim Hortons operations in an initial public offering (http://en.wikipedia.org/wiki/Initial_public_offering), which was completed on March 24 (http://en.wikipedia.org/wiki/March_24), 2006 (http://en.wikipedia.org/wiki/2006), and subsequently said it would spin off to shareholders its remaining interest by the end of 2006. Wendy's cited increased competition between the two chains and Tim Hortons' increasing self-sufficiency as reasons for its decision, but the company had been under shareholder pressure to make such a move because of the strength and profitability of the Tim Hortons brand.
Shares of the company began trading on March 24 (http://en.wikipedia.org/wiki/March_24), 2006 (http://en.wikipedia.org/wiki/2006), with an initial public offering (http://en.wikipedia.org/wiki/Initial_public_offering) of C$ (http://en.wikipedia.org/wiki/Canadian_dollar)27 per share, raising over $700 million in the first day of trading. On September 28 (http://en.wikipedia.org/wiki/September_28), 2006 (http://en.wikipedia.org/wiki/2006), Wendy's spun off the rest of its shares in Tim Hortons, by distributing the remaining 82% to its shareholders. On the same day, Tim Hortons added to Canada's benchmark stock-market indicator, the S&P/TSX Composite Index (http://en.wikipedia.org/wiki/S%26P/TSX_Composite_Index), and to the S&P/TSX 60 (http://en.wikipedia.org/wiki/S%26P/TSX_60).