Thursday, March 23, 2006

Don't Take A Timmy's Fo' Granted

Cause I got potentials to blow up a Winchells
And you know what?
I'm Cool Like Dat like Digable Planets
But don't take a ***** for granted
--Ice Cube

Tim-tim goes public:

Tims sold at $27 a share


If you're a Canadian retail investor who was lucky enough to grab a piece of Friday's wildly anticipated Tim Hortons initial public offering, you'll be paying $27 a share. But the lucky ones are few and far between.

Investment bankers carving up the IPO have set aside just 14 per cent of the offer for Canadian retail investors, the same group whose unswerving loyalty to the coffee chain has made it one of the hottest deals this country has seen since the dot-com boom.

Wendy's bought the business for about a half billion CDN back in 1995, and now it's supposed to be worth about 5.5B to 5.9B CDN. Wendy's itself has only a market cap of about 7.5 B...although that's USD, but still....Tim's is effectively the biggest asset of Wendy's right, now and now overshadows the rest of the company...It's like a food giant's Nortel, to Wendy's BCE...

For a clue on just how well Timmy's is really doing, a chart here indicates that while Wendy's continues to suck hella ass, Tim's is kicking some serious ass on sales...even in the US.

Here's an even better indicator right here. While in the past year, Wendy's overall sales have decreased, Tim's have gone up almost 20%.

And over the last 10 years, Tim's sales have skyrocketed around 500%.

Even on a per restaurant basis, Tim's average location has doubled its annual revenue from 810,000 CDN, to over 1,600,000 CDN.

So when they talk massive expansion in the US, are they talking about increasing sales? Or increasing locations? Both, mofos, both. It's frickin' on for the Notorious T.I.M.

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