4-Star Stocks Poised to Pop: Tim Hortons

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, coffee chain operator Tim Hortons (NYS: THI) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Tim Hortons' business and see what CAPS investors are saying about the stock right now.

Tim Hortons facts

  
Headquarters (Founded)Oakville, Canada (1964)
Market Cap$7.8 billion
IndustryRestaurants
Trailing-12-Month Revenue$2.64 billion
ManagementChairman/Interim CEO Paul House
CFO Cynthia Devine
Return on Equity (Average, Past 3 Years)36%
Cash/Debt$95.3 million / $440.1 million
Dividend Yield1.4%
CompetitorsMcDonald's (NYS: MCD)
Panera Bread (NAS: PNRA)
Starbucks (NAS: SBUX)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 93% of the 387 members who have rated Tim Hortons believe the stock will outperform the S&P 500 going forward. These bulls include hairyrichkid and dweidel.

Earlier this week, hairyrichkid offered some insight into Tim Hortons' popularity: "I have never gone past a store that doesn't have a line of cars for breakfast or lunch. It's a chalenge to get past without getting in an accident."

Currently, Tim Hortons even trades at a cheapish P/E of 13. That represents a clear discount to competitors such as McDonald's (18), Panera (26), and Starbucks (27).

CAPS member dweidel elaborates on the bull case:

If I need a quick coffee -- it's Timmies, if I buy food on the go -- 50% of the time it's Timmies, If I'm meeting up with somebody -- it's Timmies. Well priced fresh baked goods made throughout the day, made to order sandwiches, coffee ... and the official workweek breakfast destination of Canada. Beautiful stores and also smaller locations in many gas station convenience stores. ... Now it's time to grow 3 fold over the next decade in the North Eastern U.S. Solid dividend.

What do you think about Tim Hortons, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!

Interested in another easy way to track Tim Hortons?Add it to your watchlist.

At the time this article was published Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. The Motley Fool owns shares of Starbucks and Panera Bread.Motley Fool newsletter serviceshave recommended buying shares of Panera Bread, Tim Hortons, McDonald's, and Starbucks. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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