Burger King to Merge with Tim Hortons, Will Create 3rd-Largest Fast Food Company in the World
Burger King and Tim Hortons announced on Sunday night that the two companies are in cahoots to complete a merger. If the deal is successful, it would create the world’s third-largest fast food company, with $22 billion in system sales and over 18,000 restaurants deep in 100 countries.
In a joint statement, BK and Timmies touted that they would benefit “from shared corporate services, best practices and global scale and reach” while still operating as “standalone brands.” In short, BK, now based in Miami, will reap the benefits of it’s neighbors’ lower corporate income tax rates — 15% in Canada vs 35% in the US.
Unsurprisingly, BK shares soared 20% from $6.51 to $33.57 in afternoon trading and Tim Hortons 24% to $77.63. With the coffee-and-donut behemoth’s market value of $8.4 billion and the burger joint’s $9.6 billion, together, the companies are worth $18 billion. Their combined value and reach, coupled with Canada’s favorable corp. taxes, are no doubt making investors thirsty for the tie-up.
However, Canadians are furious over an American chain encroaching on their beloved Timmies. Personally, if they try to pull some whopper-flavored timbits shit, I’m going to cry myself to sleep and lament this pitiful world.
H/T WSJ