Why Tim Hortons Looks Tasty in 2013

Updated

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 has earned a respected four-star ranking.

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

Tim Hortonsfacts

Headquarters (founded)

Oakville, Canada (1964)

Market Cap

$7.6 billion

Industry

Restaurants

Trailing-12-Month Revenue

$3.2 billion

Management

Chairman/Interim CEO Paul House

CFO Cynthia Devine

Return on Equity (average, past 3 years)

39.6%

Cash/Debt

$137.7 million/$477.0 million

Dividend Yield

1.7%

Competitors

Dunkin' Brands

McDonald's

Starbucks


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 92% of the 411 members who have rated Tim Hortons believe the stock will outperform the S&P 500 going forward.

Just last week, one of those Fools, mjwclarke, succinctly summed up the bull case for our community:

Tim Hortons has an unbeatable brand in Canada, and is expanding at a healthy clip in the United States. They are introducing ever-higher margin products into their stores and expanding well in the lunch and dinner segments. P/E is at the higher end, but business risk is low and competition in their home market is relatively low. This company has a wide moat.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong four-star rating, Tim Hortons may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2013." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

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The article Why Tim Hortons Looks Tasty in 2013 originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends and owns shares of McDonald's and Starbucks. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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