Question

Provide a financial assessment of Tim Hortons.

Provide a SWOT analysis of Tim Hortons.

Answer 1

Tim Hortons is a Canadian food establishment running from 1964. This firm has evolved with time. They have entered International market also. It is an ethical and sustainable company and its headquarters is in Oakville, Ontario. It has nearly 3665 restaurants in Canada and 869 in US.

Tim Hortons holds 76% of Canada's total baked goods market and 62% of thr coffee market of Canada. In 2014, Tim Hortons was purchased by The Burger King for 11.4 billion US dollars. But now this chain is becoming famous internationally as well. It had thr total profit earning of about 4 billion every year and had the assets worth of $2504 million in 2015. But over time, as the competition in this industry has increased largely, their business is also being affected by this tough competition in market.

SWOT Analysis

--STRENGTHS

• Their prices appeal to all income groups
• Their goodwill is very good in Canada and it has a high brand reputation
• It has been rated as the most authentic brand in many surveys
• And it is known for its transparency in its operations

--WEAKNESSES

• They are more preferred by the mid segment now, the premium segment of their target market is being taken over by Starbucks
• They were famous for their coffee and donuts, but as competition increased, they started increasing and adding their menus and that affected their original product
• Though it is very successful in Canada, it hasn't received that much success in other countries

--OPPORTUNITIES

• The trends like more women in workplace, increasing Internet facilities, etc are the trends favouring coffee chains like Tim Hortons
• More innovations and ideas can be utilised
• All day breakfast options are trending which can be beneficial for Tim Hortons
• By making the food more healthy, people will feel less guilty of eating more fatty foods

--THREATS

• The competition in their feild is much higher now with major fast food chains like Starbucks, Mcdonalds, Subway, Taco Bell, etc
• People are now being more fitness conscious and avoiding junk food