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Burger King plans expansion of Tim Hortons

A Burger King sign and a Tim Hortons sign are displayed on St. Laurent Boulevard in Ottawa, Canada, on Monday, Aug. 25, 2014. Canada's iconic coffee chain, Tim Hortons, and Miami-based Burger King say they will join forces, but will operate as independent brands to form the world's third-largest quick service restaurant company. (AP Photo/The Canadian Press, Sean Kilpatrick)

A Burger King sign and a Tim Hortons sign are displayed on St. Laurent Boulevard in Ottawa, Canada, on Monday, Aug. 25, 2014. Canada's iconic coffee chain, Tim Hortons, and Miami-based Burger King say they will join forces, but will operate as independent brands to form the world's third-largest quick service restaurant company. (AP Photo/The Canadian Press, Sean Kilpatrick)

The fight for the coffee and breakfast crowd is heating up, both at home and abroad.

Burger King said yesterday it will buy Tim Hortons in an $11 billion deal that would create the world’s third largest fast-food chain. The company is hoping to turn the coffee-and-doughnut chain into a household name outside Canada, and give itself a stronger foothold in the booming morning business.

Alex Behring, Burger King’s executive chairman, said the new company would be one of the fastest-growing fast-food chains in the world. The corporate headquarters will be in Canada, but Burger King will still be operated out of Miami.

The international ambitions for Tim Hortons echo the strategy Burger King’s owner, 3G Capital, has applied to Burger King since buying the hamburger chain in 2010. Given Burger King’s struggles in the U.S., the investment firm has focused on opening more locations in other countries.

Last year, for example, 3G accelerated expansion and opened 670 Burger King locations. Burger King now has nearly 14,000 locations globally, but the company has noted that’s still far less than the more than 35,000 McDonald’s restaurants around the world.

In the U.S., Tim Hortons could also give Burger King another way to tap into the coffee and breakfast markets, which have been dominated by players including McDonald’s, Dunkin’ Donuts and Starbucks.

As someone who spends some time in Canada, I see so many things they do right and we spin our wheels forever, before doing it wrong. Everything from maximizing the use of natural assets to health care. Yes, the taxes are higher, but most of the things you buy are cheaper, so it works out. Because the Canadian political system is basically a three party system, they have to work together. Even retail is better up there. They have Canadian Tire stores, and if they ain't got it you don't need it. There are some Tim Horton's in the US, but they can't hold a candle to the Canadian ones. If you're ever up there, go into Timmy's and try a Dutchie. If even the worst Timmy's franchise ended up in town, Dunkin' Donuts would be gone in a heart beat. I don't blame companies from leaving the US one bit. We have an overpriced, over regulating government, led by an incompetent Marxist, who despises the private sector. To have a prosperous economy, we need a government we can be proud of and will provide some level of predictability, with a minimum of surprises. What we have is a government where every surprise is worst than the last.

Where do you shop in Canada? On the black market? Would you buy your car in Canada, your appliances? Would you even go to NY or MA to buy anything and pay their sales tax and Canada's is much higher. You sound like someone who would owe allegiance to Canada. Remember the old 70's, "Love it or Leave it," Take the hint and go with Burger King.

Ya' just have to know where the deals are. It doesn't matter how much the tax is; it's the out the door cost that counts. Actually, I prefer Mickey D's to Burger King. My goodness, Tillie, what did Obozo put in your latest shipment of Kool-Aide?

Republicans love to tout how low corporate taxes are in countries like Canada without mention how they are able to do it. They have national sales taxes and high taxes on individuals. Maybe that is what we should do here to keep our patriotic companies from leaving. After all, corporations are people too.

why do liberals only have 1 word in their vocabulary - TAX TAX TAX - maybe liberals need to think about STOP SPENDING

Not necessarily. I think we need to get 65% of Americans pulling the cart and paying taxes and 35% along for the free government ride. Now it is 49% riding and 51% pulling. We need to cut government waste and social programs and encourage businesses to reinvest.

People are missing the point. The point with this company and Walgreens is not that someone is going to make a bigger profit or salary. The "point" is that we have the highest corporate tax rate in the world of industrialized nations. This needs to be looked at from a different perspective......spending. Government is so all encompassing, there is a program for everything, what is next? A program for people with callouses to get free shoes? We need, as a nation to have a discussion about priorities and what the role of government is and isn't. The GAO releases a report every single year that identifies duplicative and wasteful spending. That is ignored by politicians and the White House. Moreover, pork barrel spending like studies on cow flatulence and how it impacts so called "global warming". Obamacare is an economic drag as another example of what is killing the economy and forcing companies to go the route of inversion. Corporations and businesses are not a "cash cow", they are the engine that drives economy and prosperity. The shallow and naïve view that companies are ONLY in this to make more profit is both and immature and ideological view of why they are trying to improve their tax situation. For once, we need to look at the other side of the equation....."spending". Government was never meant to be the end all, be all of society. It does many things right and many things wrong. No one is advocating a stop to programs like Social Security or Medicare but we ought to halt all spending until we know where every single dime is going. Recently, the IRS could not identify where millions of dollars were located. We see government agencies wasting millions, making videos, spending like drunken sailors. Government workers are generally single tasking, nepotistic under performers who do the minimum or the max. We need to look at efficiency and productivity as well. So before progressives talk about inversion, think again about how the money that we collect in taxes from companies is spent and in many cases, WASTED.

Itsa, read my comment and you will know why Canada has corporate tax rates than US. Do you agree we should have a national sales tax and higher income taxes on individuals to keep our corporations here?

I read it, cut spending and then we can talk about additional taxation and a sales tax. Otherwise it will do nothing.

Itsa – We agree on many topics such as government waste and the unaccountability of government sector workers. But this “tax inversion” is not about that. It is about the companies building their business in the US, wanting the benefits of the US, wanting the infrastructure of the US and wanting the customers of the US but not being willing to pay their share of the cost of it. Regardless of how much the government spends if companies shift “their name” off shore then the US citizen has to cover the tax cost that they are adverting. Corporations and the wealthy have gotten tax cuts before and now they just want more for their pockets. Corporations are setting on a reported $1,600,000,000,000 in cash in offshore accounts, so they are making very good money. The stock market is doing well too. These companies show me they have zero consumer loyalty so conversely I will have zero loyalty to them as a customer, actually I will go further and show bias against them.

Thanks for proving the Laffer Curve is FACT ! - the more you tax something the less taxes you get - time for liberals to realize true economic principles

I was listening to an interview yesterday with a writer from Barron's and he told the story that Berkshire Hathaway founder Warren Buffet is funding this inversion. That is correct the same guy claiming that he is not being taxed enough and that companies are not paying their fair share. Let's start there. That same writer for Barron's also pointed out the very high corporate tax rate here mentioning that it used to be that companies went off shore to tropical tax shelters and now are going to Canada, Britain and Ireland who used to be higher in taxation. Wake up, this is about companies inability to be profitable. The bottom line is that our government spends to much, taxes too much and is not accountable.

""The corporate headquarters will be in Canada, but Burger King will still be operated out of Miami"" I guess the corporate leaders didn't want to move to Canada. Another case of "tax inversion"? Guess where I'm not buying? Walgreen's saw the light, will Burger King?

did you know that Burger King is owned by a Brazilian Hedge Fund? Sep 02, 2010 · Investment firm 3G Capital bought Burger King today for $3.26 billion. 3G Capital is backed by Brazilian tycoon Jorge Paulo Lemann. The world is GLOBAL now

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