Monday, August 01, 2005
Some people would consider the Tim Horton's donut shop chain a Canadian icon. However for the last 10 years it has been owned by US hamburger giant Wendy's. But that may be about to change. Wendy's announced Friday it intends to "spin off" 15 to 18% of Horton's, and may eventually sell the chain entirely. But its not because Horton's is doing poorly. Rather its because Horton's is doing so well, versus Wendy's. Yeah, it kind of leaves me shaking my head too, but the idea is apparently that both companies will benefit most by being separate entities again, even if it means Wendy's loses what is currently generating a large hunk of its profits. Horton's did close to a billion dollars of business last year. That's a lot of donuts and coffee. Wendy's on the other hand is seen as underperforming, and among other things will likely dump some of its unproductive stores.
Posted by Tim Gueguen at 2:24 pm