Tim Hortons Files for $600 Million IPO
12.01.2005, 11:53 AM
Tim Hortons Inc., the Canadian restaurant unit of Wendy’s International Inc., on Thursday filed with regulators to sell $600 million of stock in an initial public offering.
Details about the number of shares offered and the estimated price range weren’t disclosed in the company’s filing with the Securities and Exchange Commission.
The doughnut maker said it will use proceeds from the IPO to repay debt owed to its parent Wendy’s. Goldman Sachs and RBC Capital Markets are managing the deal.
In July, Wendy’s responded to shareholder pressure by agreeing to spin off Tim Hortons, whose steady growth has outpaced sluggish sales at the company’s U.S.-based chain of burger joints.
Tim Hortons is planning to list its stock on the New York Stock Exchange and the Toronto Stock Exchange as “THI.”
Wendy’s said Thursday that the IPO is still set for March. While Wendy’s is only selling 15 percent to 18 percent of Tim Hortons in the IPO, it plans to spin off the chain entirely within two years.
Tim Hortons operates about 2,800 coffee and doughnut shops throughout Canada and the United States, with systemwide sales growing at an annual rate of more than 18 percent over the last decade. Tim Hortons’ revenue advanced 14 percent to $1.34 billion in 2004.
Shares of Wendy’s rose 19 cents to $50.97 on the NYSE. The shares have traded between $35.57 and $53.62 over the past year.
I somewhat agree, KK has the best glaze on the market, But their too sweet for me, I can eat like 2 and I’m done. Timmy Hoes offers more suff than KK such as soup and sandwiches also. This variety will make a large differance also.
I noticed the donut thing too… come to find out that they are no longer making them on site… they are shipped in frozen and then heated / made “fresh”.
I miss my cherrystick donuts…
anyhow, Wegmans & Tops & Martin’s are not competitors here… whole different breed of store.
I think the best donuts around here are at Donuts 'N Cream on Broadway and Transit. Its like 4.50 a dozen, I think, and all are made fresh on site. Peanut Butter Cream for life.
NOTE TO ALL, NEXT TIME UR GOIN TO KK, WAIT FOR SOMEONE TO BUY A DOZEN REG GLAZED, ASK THEM IF U CAN USE THIER PURCAHSE WITH UR AAA CARD, AND U GET A FREE DOZEN
MY AAA CARD WAS THROUGH LIKE 1 YEAR AGO, AND I STILL USE IT LIKE THAT.
