Restaurant Brands International (QSR.TO)

Feels there is a lot more risk in this than there was before. Burger King bought this at a pretty high valuation and they have to be able to justify this at generating earnings off of it. There is always risk in any merger. Thinks the Burger King model did not have as much growth built in as Tim Hortons’ did.

Shareholders approved the Burger King (BKW-N) takeover. If he owned, he would take his money and run. You don’t want Burger King interests here.

The takeover by Burger King (BKW-N) was approved today. Tim Hortons will be delisted and you will get stock of the new company. Burger King is owned by a private equity firm, which has the reputation of cutting costs quite aggressively. She would sell it here and find something else in the consumer space.

The buyout is at $88.50 and the stock closed today at almost $97. The $88’s if you just took the cash, but there is a share and cash option. In his analysis, Burger King (BKW-N) has not been the greatest operator. Their balance sheet is not exactly pristine. He feels that maybe you should be out the window at some early date.

You should just sell it now and move on. They are being acquired by BKW-N.

Pretty fully valued at this point and will be a different animal you own going forward with the Burger King acquisition. The company is continuing to do a great job, but penetration has gotten as far as it can in Canada. Growth has always been a little more difficult in the US. Consider taking some money off the table and look for something else or sit on the cash.

He is confident the deal will get done. This is a great business. He sold it, but was upset because it was a great business. He wants to see more evidence of what management is going to do now. There is a great opportunity to take this brand global. The US business has not been generating the return they thought it would. He is now interested in DOL-T.

He is so upset that they are getting taken over. He sold out a few weeks ago. Does not want to hold it in a leveraged buyout. He signed up to buy Tim Horton’s, not Burger King. Think carefully before you decide what to do. There are much more risks in this story than there were.

The merger will be in Canadian funds. Trading at a discount for the time value of money. There is still a little bit of uncertainty. Would be a buyer of this unless it falls.

The acquisition by Burger King (BKW-N) is giving them growth and a stable company in a stable jurisdiction. If you don’t own this, he definitely would not be buying it here. If you own, you might think about taking profits on it.

He has looked at analysts’ spin on the acquisition by Burger King of Tim Hortons. The stock had a big gap up, but maybe the deal does not work. He sold Tims this morning even though it could go higher still, because it hit his target. It would be a buy at $68.

For a long-term hold, the long-term trend line is bullish. However, in August the stock took a parabolic move upward and will probably pull back to around $63.

Has a negative correlation to any possible economic activity. If we do go through another 2008, which he feels we eventually will, this is a good place to be sitting on to generate some cash flow. They are negatively correlated to bad economic environment. Well-run company. Yield of 1.87%.

(Market Call Minute.)

Loves this, and has owned it for a long time. Return on Capital and Return on Equity are terrific. Valuation, compared to Starbucks (SBUX-Q) is attractive. Generating lots of free cash, buying back stock and opening new stores. Five years from now it is going to be bigger and better. $67 in 5 years is a reasonable estimate.