Coffee, Doughnut Shop Tim Hortons Returns To Canada

June 30, 2009 9:33 a.m. EST

Toronto, Ontario (AHN) - Coffee and doughnut chain Tim Hortons is returning to Canada to have the company registered again in Ottawa because of decreasing corporate tax rates.

The company initially was a Canadian firm, but was bought by American burger chain Wendy's 15 years ago, which led to its registration in the U.S. Tim Hortons, however, had maintained its operations in Canada with its corporate offices located at Oakville.

From 1995 many Tim Horton outlets were established beside Wendy's stores, but after Wendy's owner Dave Thomas died in 2002, Tim Hortons offered other items on its menu outside coffee and doughnuts such as sandwiches and other breakfast and lunch food, which competed with Wendy's menu.

Despite the change in business registration, the company's stocks will be traded on both the Toronto Stock Exchange and the New York Stock Exchange. At Monday's closing, Tim Horton's stock closed at $28.75 per share, up by nine cents.

Commenting on its return to Canada, Tim Hortons said in a statement, "Management and the board believe that the proposed reorganization would be in the best interests of the company and out stockholders by creating operation and administrative efficiencies over the long term, enhancing the company's position to take advantage of lower Canadian tax rates commencing in the year following implementation."