Burger King Is Buying Tim Hortons
Get ready for a whopper of a business merger! Burger King has just announced plans to buy the Canadian coffee and doughnut chain Tim Hortons. In the fast food world, this news is almost as huge as the return of Burger King's Chicken Fries. The fast food giant has acquired Tim Hortons for $11.4 billion. According to the New York Times, this acquisition will create one of the biggest fast food operations in the world—the third biggest quick service restaurant company, in fact! Once official, the business merger will involve 18,000 restaurants in 100 different countries, which will amount to $23 billion in annual revenue. The new company headquarters will be in Canada.
Combining Tim Hortons with Burger King could give the fast food giant a better chance at remaining competitive in the coffee and breakfast market. Since McDonald's just announced plans to sell its coffee in grocery stores and Starbucks plans to bring back the beloved Pumpkin Spice Latte before September cause quite a stir of excitement, it seems that the coffee and breakfast market has never been so fierce.
The investment firm 3G Capital controls Burger King. Alex Behring, managing partner of 3G Capital, said in a statement, "Our combined size, international footprint and industry-leading growth trajectory will deliver superb value and opportunity for both Burger King and Tim Hortons shareholders, our dedicated employees, strong franchisees, and partners. We have great respect for the Tim Hortons team and look forward to working together to realize the full potential of these two extraordinary businesses."
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