Tim Hortons to Focus on Coffee
THUNDER BAY – For most Canadians, the classic ‘Double-double’ is their investment at a Tim Hortons. The iconic Canadian stop for coffee and donuts is also a major business. The company is always innovating. Right now Tim Hortons is in the process of changing their menu.
Several items are being dumped from the menu at Tim Hortons locations. They include:
- Mixed berry smoothie
- Blueberry danish
- Chocolate danish
- Double berry muffin
- Walnut Crunch doughnut
- Timbit Dutchie
- Gingerbread Man cookies
In addition, customers at the Memorial Avenue location for Tim Hortons will likely notice some changes in the near future. Tim Hortons is ending their relationship with The Stone Cold Creamery. The company is dropping the ice cream shop from its business model.
Tim Hortons Financial Update
Financially, the company is also doing some repurchasing of common shares.
Tim Hortons Inc. (TSX: THI) has announced that it plans to commence a new share repurchase program for up to $440 million in common shares.
The Company has obtained regulatory approval from the Toronto Stock Exchange (TSX) to commence a new share repurchase program (a “normal course issuer bid” or “bid”) for up to $440 million in common shares, not to exceed the regulatory maximum of 13,726,219 shares, representing 10% of the Company’s public float as of February 14, 2014, as defined under TSX rules. The bid is planned to commence on February 28, 2014and is due to terminate on the earlier of February 27, 2015 or the date the maximum share or dollar amount is reached.
“The new share repurchase program is comprised of the remaining portion of our previously announced target of repurchasing $1 billion of shares in the 12 months ended August 2014, plus an additional amount of approximately $200 million,” said Cynthia Devine, Chief Financial Officer.
Subject to the negotiation and execution of a broker agreement, the Company’s common shares will be purchased under the bid through a combination of a 10b5-1 automatic trading plan as well as at management’s discretion in compliance with regulatory requirements, and given market, cost and other considerations.
Repurchases will be made through the facilities of the TSX (and/or other Canadian marketplaces), the New York Stock Exchange (NYSE), or by such other means as may be permitted by the TSX and/or the NYSE, and under applicable laws, including private agreements under an issuer bid exemption order issued by a securities regulatory authority in Canada. Purchases made by way of private agreements under an issuer bid exemption order issued by a securities regulatory authority will be at a discount to the prevailing market price as provided in the exemption order.
There can be no assurance as to the precise number of shares that will be repurchased under the bid, or the aggregate dollar amount of the shares purchased. Tim Hortons may discontinue purchases at any time, subject to compliance with applicable regulatory requirements. Shares purchased pursuant to the bid will be cancelled.
The maximum number of shares that may be purchased during any trading day may not exceed 25% of the average daily trading volume on the TSX, based on the previous six completed calendar months, for a daily total of 83,032 common shares. This limit, for which there are permitted exceptions, is determined in accordance with regulatory requirements. On February 3, 2014, Tim Hortons reached the regulatory maximum under the 2013 program, having purchased 15,239,531 shares at an average price of $59.88 per share. The 2013 program was thus terminated onFebruary 3, 2014. As of February 14, 2014, Tim Hortons had 138,165,308 common shares outstanding.