Tim Hortons Inc
operates, develops and franchises quick service restaurants in Canada
(3148) and the US
(602). The company has grown profits at
a 12% annual rate. Since 2005 with dividends per share increasing from $.12 to
$1.04. In the same timeframe it has
generated a 25%+ return on equity. Above
average growth should continue as a result of:
(1) geographic expansion,
(2) increased marketing effort to raise the
size of the average customer check size,
(3)
new product introductions,
(4)
increasing same store sales,
(5)
higher prices,
(6)
share buyback.
Negatives:
(1) it is a highly competitive industry. Its major competitor is Starbucks.
(2) rising commodity prices,
(3) the potential impact of continued economic
malaise on sales.
THI
is rated A by Value Line, has a 30% debt to equity ratio and its stock yields 2.1%.
Statistical Summary
Stock Dividend Payout
# Increases
Yield Growth Rate Ratio
Since 2005
THI 2.1% 17% 30% 6
Debt/ EPS Down Net Value Line
Equity ROE Since 2005 Margin Rating
THI 30% 32% 1 14% A
*most companies in THI industry
do not pay a dividend
Chart
Note:
THI stock made great initial progress off its November 2008 low, quickly
surpassing the downtrend off its December 2007 high (red line) and the
September 2008 trading high (green line).
Long term, the stock is in a trading range (straight blue lines). Intermediate term, it is in an uptrend
(purple lines). The wiggly blue line is
on balance volume. The Aggressive Growth
Portfolio does not own THI. The upper
boundary of its Buy Value
Range Sell Half
Range
5/13
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