Burger King just delivered Uncle Sam a real Whopper.
Burger King Inc. is buying Canadian doughnut outfit Tim Hortons in a move widely seen as a bid to lower its tax bills.
The Miami-based burger chain will plunk down $11 billion — some of it from billionaire Warren Buffett — to buy the iconic Canadian chain, and the new fast food behemoth will be headquartered in Ontario.
The move, confirmed Tuesday, will create the world’s third-largest fast food chain and signals BK’s strong play to capture bleary-eyed breakfast and coffee customers who typically flock to McDonald’s and Starbucks.
But the deal also appeared to be a ploy to lessen Burger King’s tax burden, a so-called tax inversion strategy that has been criticized by President Obama and Congressional leaders.
Setting up shop in the Great White North will allow Burger King to pay Canada’s friendly 26% corporate tax rate, a steep break from the U.S.’ nearly 40% rate, Forbes reported.
In the run-up to the deal, Burger King’s parent company said its flagship restaurant brand, which operates 14,000 locations, and the Tim Horton brand would be run independently, and Burger King’s operations would remain in Miami.
Read more: http://www.nydailynews.com/news/national/burger-king-buy-tim-hortons-move-headquarters-canada-article-1.1917058
Re-posted by: Crosbie Real Estate Group
This story is part of NRN’s Top 100 special report, a proprietary census ranking the foodservice industry’s largest restaurant chains and companies by sales and unit data, among other metrics. The full report is available only to Nation’s Restaurant News magazine subscribers, and is part of the June 25 issue. Subscribe here.
Growth chains: Who’s on top?
That is the question industry professionals and interested observers in the financial, supplier, consulting and educational sectors want answered as they scope out competitors, prospective acquisitions, clients or case studies.
Here, we present the top five fastest-growing chains, based on the change in U.S. systemwide sales in fiscal 2011, or the year ended closest to December 2011, versus fiscal 2010. These chains are the current stars of the restaurant industry, with their expansion based not only on available runway for national growth, but also a clear consumer proposition.
While these top five growth chains favor sandwich and fast-casual players, two entries from the casual-dining segment, which was particularly battered by the recession, also made the cut.
Get to know these five chains’ sales growth, market share, U.S. unit growth and more.
1. Five Guys Burgers and Fries, Lorton, Va. (Sandwich)
2. Jimmy John’s, Champaign, Ill. (Sandwich)
3. Chipotle Mexican Grill, Denver (Sandwich)
4. BJ’s Restaurants, Huntington Beach, Calif. (Casual Dining)
5. Cheddar’s Casual Café, Irving, Texas (Casual Dining)
7-Eleven popping up shop along the front range at 58th & Ward in Arvada, Happy Canyon Shopping Center in Denver, and N Academy Blvd & N Carefree Cr in Colorado Springs! Brokers: Andy Buettner, Eli Boymel and Rich Hobbs
Wendy’s Animal Welfare Council, Dennis Hecker, head of Wendy’s Animal Welfare Council and SVP of Quality Assurance today announced two major improvements to its animal welfare standards to significantly improve the humane treatment of chickens and pigs.
“Wendy’s takes our role as a responsible corporate citizen very seriously, which includes the humane treatment of animals,” says Dennis Hecker, head of Wendy’s Animal Welfare Council and SVP of Quality Assurance. “For more than a decade, our council has set industry leading standards for animal welfare.”
Wendy’s president and CEO Emil J. Brolick unveiled in the company’s fourth-quarter earnings call yesterday a new recipe to “take the brand where we need it to be,” and said reviving the iconic brand will require competing with upstart fast-casual brands.
While Wendy’s North American company-operated same-store sales increased 5.1 percent in the fourth quarter, Brolick said the company faces stiff headwinds from both convenience stores and what he called the “new [quick serves].”
He said restaurants such as Chipotle Mexican Grill, Five Guys Burgers and Fries, and Panera Bread have grown at a compounded rate of 6.7 percent over the past five years and, not including the breakfast daypart, “have gained virtually all the share, or accounted for all the growth” in the quick-serve segment during the last five years.
Re-posted by: Crosbie Real Estate Group
Golden-based Good Times Restaurants said Monday it is planning to close some of its lower-performing stores in “trade areas that are no longer our core target.”
Christi Pennington, spokeswoman for Good Times, said she couldn’t put a number on how many will be closed but said it won’t be many.
Which stores will be closed is still being reviewed, Pennington said.