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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 8/10

vs
industry
vs
history
Cash to Debt 0.05
THI's Cash to Debt is ranked lower than
67% of the 310 Companies
in the Global Restaurants industry.

( Industry Median: 0.83 vs. THI: 0.05 )
THI' s 10-Year Cash to Debt Range
Min: 0.05   Max: 1.4
Current: 0.05

0.05
1.4
Equity to Asset 0.31
THI's Equity to Asset is ranked lower than
58% of the 306 Companies
in the Global Restaurants industry.

( Industry Median: 0.54 vs. THI: 0.31 )
THI' s 10-Year Equity to Asset Range
Min: 0.03   Max: 0.58
Current: 0.31

0.03
0.58
Interest Coverage 15.89
THI's Interest Coverage is ranked higher than
64% of the 244 Companies
in the Global Restaurants industry.

( Industry Median: 15.87 vs. THI: 15.89 )
THI' s 10-Year Interest Coverage Range
Min: 12.59   Max: 32.74
Current: 15.89

12.59
32.74
F-Score: 7
Z-Score: 5.35
M-Score: -2.66
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 8/10

vs
industry
vs
history
Operating margin (%) 19.08
THI's Operating margin (%) is ranked higher than
93% of the 303 Companies
in the Global Restaurants industry.

( Industry Median: 6.84 vs. THI: 19.08 )
THI' s 10-Year Operating margin (%) Range
Min: 19.05   Max: 34.39
Current: 19.08

19.05
34.39
Net-margin (%) 13.04
THI's Net-margin (%) is ranked higher than
94% of the 303 Companies
in the Global Restaurants industry.

( Industry Median: 3.88 vs. THI: 13.04 )
THI' s 10-Year Net-margin (%) Range
Min: 12.15   Max: 24.6
Current: 13.04

12.15
24.6
ROE (%) 55.75
THI's ROE (%) is ranked higher than
98% of the 297 Companies
in the Global Restaurants industry.

( Industry Median: 9.80 vs. THI: 55.75 )
THI' s 10-Year ROE (%) Range
Min: 20.07   Max: 485.27
Current: 55.75

20.07
485.27
ROA (%) 17.44
THI's ROA (%) is ranked higher than
97% of the 304 Companies
in the Global Restaurants industry.

( Industry Median: 4.54 vs. THI: 17.44 )
THI' s 10-Year ROA (%) Range
Min: 11.67   Max: 25.14
Current: 17.44

11.67
25.14
ROC (Joel Greenblatt) (%) 36.86
THI's ROC (Joel Greenblatt) (%) is ranked higher than
84% of the 302 Companies
in the Global Restaurants industry.

( Industry Median: 18.40 vs. THI: 36.86 )
THI' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 27.32   Max: 63.5
Current: 36.86

27.32
63.5
Revenue Growth (%) 14.10
THI's Revenue Growth (%) is ranked higher than
91% of the 179 Companies
in the Global Restaurants industry.

( Industry Median: 7.00 vs. THI: 14.10 )
THI' s 10-Year Revenue Growth (%) Range
Min: 6.3   Max: 16.4
Current: 14.1

6.3
16.4
EBITDA Growth (%) -2.90
THI's EBITDA Growth (%) is ranked higher than
57% of the 148 Companies
in the Global Restaurants industry.

( Industry Median: 5.90 vs. THI: -2.90 )
THI' s 10-Year EBITDA Growth (%) Range
Min: -2.9   Max: 27.8
Current: -2.9

-2.9
27.8
EPS Growth (%) -7.60
THI's EPS Growth (%) is ranked higher than
56% of the 137 Companies
in the Global Restaurants industry.

( Industry Median: 10.10 vs. THI: -7.60 )
THI' s 10-Year EPS Growth (%) Range
Min: -7.6   Max: 35.8
Current: -7.6

-7.6
35.8
» THI's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q1 2013

THI Guru Trades in Q1 2013

Jim Simons 168,800 sh (New)
Joel Greenblatt 5,775 sh (+18.71%)
Tom Russo 200 sh (unchged)
Steven Cohen Sold Out
» More
Q2 2013

THI Guru Trades in Q2 2013

Jeremy Grantham 16,700 sh (New)
John Burbank 54,000 sh (New)
Steven Cohen 4,124 sh (New)
Tom Russo Sold Out
Joel Greenblatt Sold Out
Jim Simons 74,000 sh (-56.16%)
» More
Q3 2013

THI Guru Trades in Q3 2013

Joel Greenblatt 5,817 sh (New)
Steven Cohen 12,656 sh (+206.89%)
Jim Simons 121,900 sh (+64.73%)
Jeremy Grantham 27,100 sh (+62.28%)
John Burbank Sold Out
» More
Q4 2013

THI Guru Trades in Q4 2013

Jim Simons 234,700 sh (+92.53%)
Joel Greenblatt 9,608 sh (+65.17%)
Steven Cohen 6,500 sh (-48.64%)
Jeremy Grantham 7,300 sh (-73.06%)
» More
» Details

Insider Trades

Latest Guru Trades with THI

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
Joel Greenblatt 2013-12-31 Add 65.17%0.01%$57.13 - $61.09 $ 54.93-7%9608
John Burbank 2013-09-30 Sold Out 0.1%$54.11 - $59.49 $ 54.93-3%0
Joel Greenblatt 2013-09-30 New Buy0.01%$54.11 - $59.49 $ 54.93-3%5817
John Burbank 2013-06-30 New Buy0.1%$52.08 - $58.37 $ 54.931%54000
Joel Greenblatt 2013-06-30 Sold Out 0.02%$52.08 - $58.37 $ 54.931%0
Joel Greenblatt 2012-12-31 New Buy0.01%$45.59 - $53.42 $ 54.9312%4865
Joel Greenblatt 2012-12-31 New Buy0.01%$45.59 - $53.42 $ 54.9312%4865
John Hussman 2012-03-31 Reduce -28.57%$46.85 - $54.96 $ 54.9315%10000
John Hussman 2011-09-30 Add 21.74%$42.46 - $49.33 $ 54.9316%14000
George Soros 2011-03-31 Sold Out $40.84 - $46.46 $ 54.9328%0
Premium More recent guru trades are included for Premium Members only!!
» Interactive Charts

Peter Lynch Chart ( What is Peter Lynch Charts )

Ratios

vs
industry
vs
history
P/E(ttm) 21.80
THI's P/E(ttm) is ranked higher than
73% of the 261 Companies
in the Global Restaurants industry.

( Industry Median: 24.70 vs. THI: 21.80 )
THI' s 10-Year P/E(ttm) Range
Min: 11.33   Max: 39.27
Current: 21.8

11.33
39.27
P/B 11.85
THI's P/B is ranked lower than
77% of the 288 Companies
in the Global Restaurants industry.

( Industry Median: 2.54 vs. THI: 11.85 )
THI' s 10-Year P/B Range
Min: 4.27   Max: 12.03
Current: 11.85

4.27
12.03
P/S 2.80
THI's P/S is ranked lower than
73% of the 314 Companies
in the Global Restaurants industry.

( Industry Median: 1.10 vs. THI: 2.80 )
THI' s 10-Year P/S Range
Min: 2.24   Max: 6.96
Current: 2.8

2.24
6.96
PFCF 25.89
THI's PFCF is ranked higher than
62% of the 158 Companies
in the Global Restaurants industry.

( Industry Median: 26.90 vs. THI: 25.89 )
THI' s 10-Year PFCF Range
Min: 16.24   Max: 101.67
Current: 25.89

16.24
101.67
EV-to-EBIT 15.05
THI's EV-to-EBIT is ranked higher than
67% of the 277 Companies
in the Global Restaurants industry.

( Industry Median: 17.20 vs. THI: 15.05 )
THI' s 10-Year EV-to-EBIT Range
Min: 7.9   Max: 34.1
Current: 15.05

7.9
34.1
PEG 3.69
THI's PEG is ranked higher than
50% of the 119 Companies
in the Global Restaurants industry.

( Industry Median: 2.76 vs. THI: 3.69 )
THI' s 10-Year PEG Range
Min: 0.46   Max: 2.26
Current: 3.69

0.46
2.26
Shiller P/E 24.14
THI's Shiller P/E is ranked higher than
72% of the 134 Companies
in the Global Restaurants industry.

( Industry Median: 28.50 vs. THI: 24.14 )
THI' s 10-Year Shiller P/E Range
Min: 20.34   Max: 26.59
Current: 24.14

20.34
26.59

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 1.90
THI's Dividend Yield is ranked higher than
59% of the 197 Companies
in the Global Restaurants industry.

( Industry Median: 1.50 vs. THI: 1.90 )
THI' s 10-Year Dividend Yield Range
Min: 0.22   Max: 1.83
Current: 1.9

0.22
1.83
Dividend Payout 0.37
THI's Dividend Payout is ranked higher than
59% of the 165 Companies
in the Global Restaurants industry.

( Industry Median: 0.37 vs. THI: 0.37 )
THI' s 10-Year Dividend Payout Range
Min: 0.15   Max: 0.37
Current: 0.37

0.15
0.37
Dividend growth (3y) 26.00
THI's Dividend growth (3y) is ranked higher than
88% of the 82 Companies
in the Global Restaurants industry.

( Industry Median: 14.50 vs. THI: 26.00 )
THI' s 10-Year Dividend growth (3y) Range
Min: 0   Max: 28.6
Current: 26

0
28.6
Yield on cost (5-Year) 6.28
THI's Yield on cost (5-Year) is ranked higher than
88% of the 201 Companies
in the Global Restaurants industry.

( Industry Median: 1.80 vs. THI: 6.28 )
THI' s 10-Year Yield on cost (5-Year) Range
Min: 0.73   Max: 6.05
Current: 6.28

0.73
6.05
Share Buyback Rate 4.70
THI's Share Buyback Rate is ranked higher than
96% of the 167 Companies
in the Global Restaurants industry.

( Industry Median: -0.30 vs. THI: 4.70 )
THI' s 10-Year Share Buyback Rate Range
Min: 4.8   Max: -5.7
Current: 4.7

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 11.87
THI's Price/Tangible Book is ranked lower than
79% of the 242 Companies
in the Global Restaurants industry.

( Industry Median: 2.60 vs. THI: 11.87 )
THI' s 10-Year Price/Tangible Book Range
Min: 4.96   Max: 11.99
Current: 11.87

4.96
11.99
Price/DCF (Projected) 1.79
THI's Price/DCF (Projected) is ranked higher than
64% of the 127 Companies
in the Global Restaurants industry.

( Industry Median: 1.70 vs. THI: 1.79 )
THI' s 10-Year Price/DCF (Projected) Range
Min: 1.52   Max: 1.82
Current: 1.79

1.52
1.82
Price/Median PS Value 1.00
THI's Price/Median PS Value is ranked higher than
82% of the 274 Companies
in the Global Restaurants industry.

( Industry Median: 1.23 vs. THI: 1.00 )
THI' s 10-Year Price/Median PS Value Range
Min: 0.84   Max: 1.33
Current: 1

0.84
1.33
Price/Peter Lynch Fair Value 2.23
THI's Price/Peter Lynch Fair Value is ranked higher than
69% of the 84 Companies
in the Global Restaurants industry.

( Industry Median: 1.90 vs. THI: 2.23 )
THI' s 10-Year Price/Peter Lynch Fair Value Range
Min: 1.08   Max: 2.25
Current: 2.23

1.08
2.25
Price/Graham Number 3.34
THI's Price/Graham Number is ranked lower than
69% of the 211 Companies
in the Global Restaurants industry.

( Industry Median: 2.10 vs. THI: 3.34 )
THI' s 10-Year Price/Graham Number Range
Min: 1.56   Max: 3.37
Current: 3.34

1.56
3.37
Earnings Yield (Greenblatt) 6.60
THI's Earnings Yield (Greenblatt) is ranked higher than
71% of the 281 Companies
in the Global Restaurants industry.

( Industry Median: 5.70 vs. THI: 6.60 )
THI' s 10-Year Earnings Yield (Greenblatt) Range
Min: 2.9   Max: 12.7
Current: 6.6

2.9
12.7
Forward Rate of Return (Yacktman) 12.04
THI's Forward Rate of Return (Yacktman) is ranked higher than
74% of the 180 Companies
in the Global Restaurants industry.

( Industry Median: 9.39 vs. THI: 12.04 )
THI' s 10-Year Forward Rate of Return (Yacktman) Range
Min: 12.5   Max: 27.9
Current: 12.04

12.5
27.9

Business Description

Industry: Restaurants » Restaurants
Compare:BH, CMG, MCD, DIN, SBUX » details
Traded in other countries:THI.Canada, TN2.Germany
Tim Hortons Inc., a Canadian corporation was formed in 1964. It operates a quick service restaurant chain in North America and Canada. It appeals to a range of consumer tastes, with a menu that includes premium coffee, espresso-based hot and cold specialty drinks, including lattes, cappuccinos and espresso shots, specialty teas, fruit smoothies, home-style soups, grilled panini and classic sandwiches, wraps, hot breakfast sandwiches and fresh baked goods, including its trademark donuts. The Company's primary business model is to identify potential restaurant locations, develop suitable sites, and make these new restaurants available to approved restaurant owners. It directly owns and operates (without restaurant owners) only a small number of company restaurants in Canada and the U.S. In addition, the Company has vertically integrated manufacturing, warehouse and distribution operations which supply a portion of the system restaurants with paper and equipment, as well as food products, including shelf-stable products, and, from one distribution center, refrigerated and frozen food products. The Company and its franchisees have not experienced any material shortages of food, equipment, fixtures, or other products that are necessary to restaurant operations. It currently competes with quick service and fast-casual restaurants focused on specialty coffee,, baked goods retailers, sandwich shops, and gas and other convenience locations, ranging from small local independent operators to well-capitalized national and regional chains, such as McDonald's(r), Wendy's, Starbucks(r), Subway(r) and Dunkin' Donuts(r). The Company has registered various trademarks and service marks in Canada, the U.S. and certain other jurisdictions. Some of its recognizable registered marks include: Tim Hortons signature; Tim Hortons and Always Fresh Oval Background Design; Roll Up The Rim To Win(r); Timbits; Tim Card, TimShop, Camp Day and Making a True Difference. As of December 30, 2012, there were 101 combination restaurants in the TIMWEN Partnership, all of which were in Canada, and all of which were franchised. The company also has a small number of combination restaurants that are not held by the TIMWEN Partnership. At December 30, 2012, there were 20 such restaurants in Canada, all of which were franchised, and 30 such restaurants in the U.S., all of which were franchised. The development and operation of restaurants depend to an extent on the selection and acquisition of suitable sites, which are subject to zoning, land use including the placement of drive-thrus, environmental including litter and drive-thru emissions, traffic and transportation, land transfer tax, and other regulations.

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