Burger King takes their talents to Canada

[thelakelander]

Originally, founded in Jacksonville, Burger King is now moving their headquarters to Canada:

Burger King to buy Tim Hortons for $11.4 billion, create new company

Burger King Worldwide and Tim Hortons Inc. have reached an $11.4 billion agreement to merge and create the third-largest fast-food brand in the world, the companies announced Tuesday morning.

A new parent company, which will house both brands, will be based in Canada, the combined company's biggest market, according to a news release. Combined, Burger King and Tim Hortons rake in $23 billion in annual revenue, with over 18,000 restaurant outlets in 100 countries.

Full article: http://www.bizjournals.com/southflorida/news/2014/08/26/burger-king-to-buy-tim-hortons-for-11-4-billion.html

[spuwho]

Both BK and MCD have been same store neutral or declining for awhile. They don't fit the "fast, fresh, casual" that people prefer.

MCD redid the stores and are ripping out the playlands. BK franchisees haven't been so willing to toe the corporate line on remodeling and kitchen upgrades.

Wendy's has merged and unmerged. They are refitting the stores now, but they have same problem.

Many believe that the commodity hamburger market has plateaued. Now with premium burger chains on the rise with better settings and a "fresher" approach to delivery, it's putting pressure on the market leaders.

If not for McCafe, MCD would be hurting even more.

With BK moving the HQ to Canada, many think it's purely a tax break, but I would like to think that current mgmt. is cashing out and giving up.

[fsquid]

actually it is a move to appease Canadian regulators who probably won't like one of their iconic companies being bought.

[I-10east]

A new limited time item; Caribou Whoppers (only at select locations)

[fsquid]

I guess Obama won't be calling Buffet anymore.

[finehoe]

Just the latest in a series of so-called "tax inversion" deals by US firms, which allow American companies to move their headquarters to a country with a lower tax rate by acquiring or merging with a foreign company.

[coredumped]

Just the latest in a series of so-called "tax inversion" deals by US firms, which allow American companies to move their headquarters to a country with a lower tax rate by acquiring or merging with a foreign company.

The price of bigger government.

[coredumped]

or a free trade agreement that allows this kind of relocation without tariff consequences.

This is the kind of thing that Ross Perot's warnings and the WTO protests were about, btw.

It's a circular problem. Bigger government costs more, so we "must regulate and not allow relocation" which equals more government.
Maybe we can make a new branch? Department of Tax Invasion Enforcement.

[coredumped]

Actually this is the lowest taxation rate in the history of the past 90 years, coredumped.

It's still crippling:


(source http://www.washingtonpost.com/blogs/wonkblog/wp/2014/08/25/burger-king-is-mulling-a-move-to-canada-for-breakfast-and-lower-taxes/)

There's a reason why these companies are leaving. When they do they take high paying white collar jobs with them.

[fsquid]

few jobs are moving in this deal, just the home country for taxation purposes

[JeffreyS]

This is the greatest consumer market in the history of the world. The idea that we have to give it away with light regations and low taxes is unAmerican.

The whole hate your government , hate your fellow Americans is hating your country.

[fsquid]

This is the greatest consumer market in the history of the world. The idea that we have to give it away with light regations and low taxes is unAmerican.

The whole hate your government , hate your fellow Americans is hating your country.

It's business.  I don't want to pay the statutory US rate, and I don't have to because I can pay lower taxes elsewhere, so I'll move elsewhere unless the US enacts a loophole to keep me here.

[JeffreyS]

Fsquid I get that to businesses it is just business. However it is when citizens like you feel those businesses should get a free pass to our market that I don't understand.

[finehoe]

It's still crippling:

Hardly.

[finehoe]

U.S. companies face the highest official corporate tax rate in the world. But there's a big difference between the rates set out by law and the cash that's actually collected.

Large, profitable U.S. corporations paid an average effective federal tax rate of 12.6% in 2010, the Government Accountability Office said

http://money.cnn.com/2013/07/01/news/economy/corporate-tax-rate/

Crippling!