Burger King Acquires Tim Hortons to Form Third Largest QSR Company in the World
It’s all happening: today an agreement was reached between Canadian coffee chain Tim Hortons and American burger icon Burger King. The agreement will result in the two franchises merging into one single entity with 18,000 locations and $23 billion in system sales, making it the third largest quick service restaurant (QSR) company in the world.
As the leading coffee brand in Canada, Tim Hortons is an iconic brand in its own right and acquisition didn’t come cheap. Burger King is putting $12.5 billion in cash into this deal, securing $9 billion in equity financing commitments from JP Morgan and Wells Fargo plus an additional $3 billion from Warren Buffet via Berkshire Hathaway. The newly formed third entity will be 51 percent owned by Burger King parent company and Berkshire Hathaway collaborator 3G Capital (also the parent company of Burger King ketchup supplier H.J. Heinz Company).
Yesterday, as industry talk about this potential merger started to crystallize, there was a lot of talk about the realities and the ethics of the tax inversion that would occur as a result of a Burger King-Tim Hortons merger, with BK effectively becoming a Canadian company and moving its $9 billion business across the border. In the joint press release issued by the two companies, there was zero mention of this side effect, with both companies focusing on the merger as a mutually beneficial and strategic action that will enable both brands to accelerate their growth.
And indeed, as predicted, the boost for Tim Horton’s will be enormous in terms of growth potential. While Tim Hortons CEO Marc Caira is assuring media and consumers that the core of the brand will stay the same, he also explains that this partnership with Burger King and 3G Capital will give the franchise the backing it needs to rapidly expand throughout North America and even internationally:
Meanwhile Burger King is focusing on highlighting the brand revitalization that will take place under this merger – we’re betting that BK will be taking advantage of Tim Hortons’ strengths to get involved in the U.S. fast food industry’s Breakfast Wars after all:
Once Burger King and Tim Hortons finalize their unification under one 3G Capital majority-owned entity now, Burger King Executive Chairman and 3G Capital Managing Partner Alex Behring will take the reins as Executive Chairman and Director. Tim Hortons CEO Marc Caira will move into a role as Director and Vice Chairman in charge of global business development, while Burger King CEO Daniel Schwartz will serve as Group CEO and manage day-to-day operations.
Despite the merger, businesses claim that they will be holding onto their own unique identities – while the new entity will be based in Canada, Tim Hortons will continue to be headquartered in Ontario and Burger King will retain its own headquarters in Florida. The new company has also expressed a “Commitment to Canada,” asserting that it will maintain its community involvement and will make no changes to its current franchise model or employment at the restaurant level; on its own end, Burger King has made a similar commitment to its own local communities and philanthropy.
Upon completion, Tim Hortons shareholders will receive C$65.50 in cash and 0.8025 common shares of the new company for each Tim Hortons share. The new entity will be listed on both the New York Stock Exchange and the Toronto Stock Exchange. The deal is expected to complete once Tim Hortons shareholders vote to approve the deal and it passes antitrust and regulatory approvals in both the U.S. and Canada.
For more information, check out the full press release here: http://investor.bk.com/conteudo_en.asp?idioma=1&tipo=43682&conta=44&id=166086
Tyson Foods 2050 net-zero target with no bargain on taste
Tyson Foods, a leading global protein company, aims to achieve net-zero greenhouse gas emissions across its global operations and supply chain by 2050.
The company supplies 20% of the USA’s beef, pork and chicken and is best known for products such as Jimmy Dean, Hillshire Farm and BallPark.
As the first U.S.-based protein company to have an emissions reduction target approved by the Science Based Targets initiative (SBTi), this ambition, in conjunction with the release of the company’s fiscal year 2020 Sustainability Progress Report, underscores the company’s commitment to help combat the urgency of the growing climate change crisis.
Food giant Tyson will meet net-zero targets
The high level of meat and diary that humans consume is fuelling climate change for many reasons:
- Gassy cows, sheep and goats are responsible for up to 14% of all greenhouse emissions.
- 75% of agricultural land across the world is used for animal agriculture. This includes land for the animals to graze upon, as well as the land used for the crops which animals eat to grow in. The amount of land required leads to deforestation.
The move to net-zero is an expansion of Tyson Foods current science-based target of achieving a 30% GHG emissions reduction by 2030, which is aligned with limiting global temperature rise to 2.0c.
As a global organisation with 239 facilities and 139,000 employees worldwide, achieving net-zero emissions is a large task, which will require a collective effort from every team member, in addition to external stakeholders.
Tyson Foods’ goals include:
- For emissions to align with limiting global temperature rise to 1.5℃, consistent with the Paris Agreement, by the end of 2023.
- Expanding the company’s current 5m acre grazing lands target for sustainable beef production practices by 2025.
- Continuing work to eliminate deforestation risk throughout its global supply chain by 2030.
Tyson foods supports accountability and transparency
“We believe what good food can do for people and the planet is powerful. Our net-zero ambition is another important step in our work toward realising our aspiration to become the most transparent and sustainable food company in the world,” said Donnie King, Tyson Foods President and CEO.
“At Tyson Foods, we believe progress requires accountability and transparency and we are proud to exemplify that as we work to achieve net-zero greenhouse gas emissions by 2050,” said John R. Tyson, Chief Sustainability Officer, Tyson Foods. “As the first U.S.-based protein company in the food and beverage sector to have an emissions reduction target approved by the Science Based Targets initiative, we hope to continue to push the industry as a leader and remain committed to making a positive impact on our planet, with our team members, consumers and customers, and in the communities we serve.”
Tyson Foods’ new ambition, along with the company’s existing sustainability goals, is aligned with the UN Sustainable Development Goals, which include:
Goal 2: ‘End hunger, achieve food security and improved nutrition and promote sustainable agriculture’.
Goal 15: ‘Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss.’