Tim Hortons IPO price was set at $27, it soared to 39.99 before falling to $31.75. Tim Hortons earnings per share and profit are anticipated to be large. Their growth outlook however is quite limited. How many more franchises can Canada realistically support? The American expansion has been met with mixed results. Americans don't mind spending a lot of extra change for specialty coffee. Tim Hortons will find it difficult and perhaps too risky to further expand into the USA to compete against Star Bucks, Dunkn Donoughts and Krispy Cream. The franchise established in October 1964 has resulted in 42 years of growth in the number of locations and profits. The realistic outlook for increased earnings per share for Tim Hortons is dim after their first full year of fiscal results. On the life cycle of corporations, Tim Hortons is approaching maturity. Its only recourse at this age of development its own maintain market share, before old age sets in and their market share begins to arode with increased competition. The time to by Tim Horton shares is now and then sell them quickly after their first annual report is released which will signal good news to the investor which undoubtely will result in a market share spike in the short term.
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