Coffee and get a better tax deal.
They are in talks to purchase tim hortons.
For more on this, tim chester and julie hyman join us.
You are canadian.
It's true, matt.
For those who don't know.
You hear about companies moving to ireland for a better tax break, but you don't hear about canada.
Still, it is 15% better than ours.
I was dumbfounded when i saw this report, subsequently confirmed by burger king worldwide.
Because precisely of what you say.
The canada i grew up in was considered the socialist neighbor to the north.
Now, according to kpmg, which studies tax regimes in 10 industrialized countries, this year canada for the second year in the row has the most business friendly tax regime.
We are talking about a comparison to the united states for fifth, the u.k. ranking seventh, france ranking 10th, etc., etc., the point in that since the 1960's, when the combined for vigil and federal tax rate was north of 50% in canada, it has since dropped.
Much lower, to your point, then the comparable tax rate in america.
What about the business case?
Is their business case for them purchasing tim hortons?
You have the problem of growth for everyone in these fast food workers spaces right now.
Whether you are talking about mcdonald's, wendy's, or burger king.
Particularly in north america.
Burger king has seen so much stronger growth outside the u.s.. you have to look to those areas.
Burger king does not have as much of a presence in breakfast at all.
They do serve seattle's best coffee, but they don't have that traffic.
You don't want a whopper for breakfast?
I am sure you would, but we are different demographic here.
The question for burger king, alternately, and let's not forget that the genius behind three g capital, the brazilian investment firm that engineered the merger of anheuser-busch to create the world's largest brewer, he is behind the scenes.
The question for him is whether tim hortons is the right vehicle for burger king to gain an international presence.
I am telling you that as a canadian, it is a very peculiarly canadian institution.
Maple dipped doughnuts, for example, the tradition of the double-double -- it is weird.
It is not the kind of thing that necessarily resonates south of the border.
Which is why tim hortons has had struggles over the years trying to expand in america.
They have 850 locations here relative to the 3600 and canada, but they are minimally profitable relative to those in 80 locations.
There are a smattering of stores in ireland, the u.k., but they are pretty much a rounding error.
It is canada and the potential in the american market and it has not been realized yet.
Americans don't seem to enjoy their coffee and the doughnut holes, tim bits, that's what they call them up there, as much as they do dunkin' donuts.
I don't know if burger king can make that better.
Remember, tim hortons is named after a great canadian hockey player that has zero recognition in america.
I had no idea, by the way.
I had no idea it was named after a hockey player.
Antitrust concerns over this deal, but there is this sense of outrage issues where the canadians say that this is tim hortons, this is our native brand.
It's possible, but let's .1 thing out, tim's has previously been owned by an american burger chain, wendy's, subsequently spun off.
Partly because of bill ackman in 2006. it now functions as an independent company controlled by george paolo lehman.
So, there is precedent for this.
The one thing that sort of is lurking in the background is how the canadian government i react.
That may be one of the reasons that in combining this company they have decided the corporate headquarters will be just outside toronto.
Not just because of the lower tax rate, because the burger king tax rate is not that different from tim hortons right now.
It is because they could in theory overcome any potential objection by the canadian government, which does hold an ace up its sleeve, a can block any large merger on the grounds that it is not in the national interest.
If you keep your hq in canada, it feels more like it is in the national interest.
A great story, not just because of the canadian angle, but because of that tax and version angle.
And i am literally starving
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