Donuts on Wallstrip…Seriously EH! HOSER!

So Tim Horton’s (THI) finally gets some Wallstrip love.

Tim Horton’s is probably one of the biggest North American Fast Fod chains you have never heard of. You will.

Tim Horton’s proves that donuts are still big money and the whole anti carb craze is hooey. They also prove that management matters. Krispy Kreme (KKD) hit another all-time low yesterday.

Tim Horton’s is a sense of national pride for us Canadians. They are everywhere north of the border.

I am sticking with Chipotle’s and Starbucks as my exposure to restaurants in my portfolio’s, but Tim Horton’s is an interesting growth opportunity. We are not so different here in the US from Canada. Obviously, a revived Dunkin’ Donuts will make for tougher sledding south of the border for little Timmy.

Here is an important point in trend investing…context is important. If you are convinced that Tim Horton’s can make it in the United States, the potential is unbelievable and the growth story very much intact. I don’t have a feel for their product and the American landscape is cluttered with big players. I will stick to a story I have a better context for growth. I can’t own every great leader.

Here is their Google finance page.

Brian weighs in on the technical picture:

Disclosure – Long SBUX and CMG

2 comments

  1. Will Ashworth says:

    Howard,
    You’re a former Torontonian. You know there’s a Timmy’s on every corner in the burbs. The growth potential in Canada alone is tremendous.

    I believe they can do very well in the Great Lake states. If they’re smart, they’ll build many stores in places like Grand Rapids, Cleveland, Detroit, Rochester, Syracuse, Albany, Duluth. Anywhere close to the Canadian border.

    Opening stores elsewhere is probably corporate suicide.

  2. Thomas says:

    My loose-weight-in-a-healthy-way online blog tells me I actually have to eat SOME carbs, so I can have donuts – about three a day. Breakfast, Lunch, Dinner. Thing is not to eat anything else and drink nothing but water. You will lose weight. Believe me. Been there, done that. They come into season this time of year in central europe. Only they have no hole and are filled with jam. There will be a market for donuts for years to come. Whatever unhealthy stuff there is, we sure like it time out of mind. Great area to do business in.

Comments are closed.