Tuesday, February 28, 2006

Double-Double Your Money

You need no longer roll up the rim to win with Tim Hortons:

NEW YORK (MarketWatch) -- Tim Hortons' stock market debut will likely take place within the next few weeks now that the Wendy's spinoff has set an estimated price range in the closely watched $551 million initial public offering.
Tim Hortons Inc. said in a regulatory filing late Monday it plans to offer 29 million shares at $18 to $20 a share. Its parent, Wendy's, (WEN : Wendy's International, Inc. Last: 57.90-0.76-1.30is offering a roughly 15% stake in the chain.

The move signals the offering will be marketed to prospective investors, and a stock market debut will come in the next few weeks.

....

Including 4.35 million shares to cover overallotments, Tim Hortons will carry a total of 193.3 million shares for a market capitalization of about $3.67 billion, based on an IPO price of $19 a share.

It its latest earnings report, Wendy's managed to swing to a fourth-quarter profit, partly due to robust sales at Tim Hortons, which saw revenue climb 13% to $341.6 million in the period.

Since the end of 1995, systemwide sales and revenues have grown at compound annual growth rates of 17.6% and 16.5%, respectively.


With an ROI and a brand name like no other, I expect that this will be one of the most quickly subscribed IPOs ever in Canada.


Source: MarketWatch

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