If you were a fan of burgers and coffee in the 90s, you might have bought them from Wendy’s and Tim Hortons shared store. But does Wendy’s own Tim Hortons? Keep reading to find out!
No. Wendy’s used to own Tim Hortons for 11 years after buying it in 1995, but the two brands split in 2006. In the 90s, I was a fan of reading the Toronto star. Through it, I learned about the acquisition of Tim Hortons by Wendy’s. Since I was a coffee lover back then, I could not wait to walk into a shared store and try out Wendy’s burgers.
However, I wondered how the two companies would continue working together when I discovered that Tim Hortons had started introducing lunchtime items like sandwiches. I wanted to learn more about this relationship and therefore did more research. I created this post to inform you of when Wendy’s bought Tim Hortons if Wendy’s still owns Tim Hortons, and what caused the split between them.
When did Wendy’s buy Tim Hortons?
Wendy bought Tim Hortons in 1995. However, the relationship between the two companies began in 1992 when the owner of Tim Hortons and Wendy’s opened new outlets for these two brands in Montague in the same building. Since combining donuts and coffee was a success, Wendy’s decided to acquire Tim Hortons after three years.
Wendy’s acquired the coffee company in a $425 million deal. It was motivated to buy Tim Hortons since Tim Hortons was the most valued coffee brand in Canada, and the tax climate in the country was favorable. The media widely commented on the sale. When the two brands joined hands, they created among the largest fast-food conglomerates on the continent.
How long did Wendy’s own Tim Hortons?
Wendy’s owned Tim Hortons for 11 years since it bought the coffee brand in 1995 and ended the relationship in 2006. When Wendy’s acquired Tim Hortons, the two companies worked together to develop different outlets based on their business models. Before they began working together, Wendy’s used to sell lots of food during dinner and lunchtime but did not experience lots of sales during the rest of the day. The seating during the day was mostly empty.
On the other hand, Tim Hortons had more sales throughout the day besides dinner and lunch. The two companies decided to work together and share seating. Though the relationship between these brands started strong, Wendy’s decided to sell 15% of the Tim Hortons operations in an initial public offering in March 2006. It also announced that it would spin off the remaining interest to shareholders by the end of 2006.
Why did Wendy’s and Tim Hortons split?
According to Wendy’s, the increase in competition between the two brands was one of the main reasons behind the split. As the two brands continued working together over the years, their business models continued developing, eventually leading to a fallout. For instance, Tim Hortons began selling more mealtime foods such as soups and sandwiches alongside their coffee drinks. Therefore, it started competing against its partner, Wendy’s, for major mealtimes since Wendy’s was mainly selling items like burgers.
Many customers also preferred Tim Hortons’ products over Wendy’s because of the price differences. For instance, getting a coffee and sandwich during lunchtime was more affordable than buying a single hamburger. Tim Hortons also became self-sufficient. This brand even had plans to expand its number of locations, while Wendy’s did not require such expansions.
Tim Hortons continued becoming stronger and more profitable while, on the other hand, Wendy’s was struggling and not making profits. Major investors could not fail to notice all this, and they started pressuring Wendy’s to sell. Wendy’s spun off the coffee brand in a deal valued at around $4.7 billion.
After the split, Wendy’s started scaling back and began focusing on its burger brand while Tim Hortons continued growing. Despite the split, Wendy’s and Tim Hortons decided to continue operating dual-branded locations like Timwen for a while. However, Wendy’s revealed its plan to retain ownership of Timwen after some time.
Did Tim Hortons perform well under Wendy’s ownership?
Yes. Tim Hortons continued performing well under Wendy’s ownership. It even expanded its offering and started opening more restaurants in different regions.
Who owns Tim Hortons now?
An American Canadian Company called Restaurant Brands International currently owns Tim Hortons. Its majority shareholder is 3G capital. Burger King bought Tim Hortons in 2014, and the two chains are today subsidiaries of Restaurant Brands International.
Is Wendy’s a shareholder at Tim Hortons?
Wendy’s is no longer a shareholder at Tim Hortons since it no longer owns the coffee brand.