Originally, founded in Jacksonville, Burger King is now moving their headquarters to Canada:
QuoteBurger 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
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.
actually it is a move to appease Canadian regulators who probably won't like one of their iconic companies being bought.
A new limited time item; Caribou Whoppers (only at select locations) :)
I guess Obama won't be calling Buffet anymore.
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.
Quote from: finehoe on August 26, 2014, 04:04:41 PM
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.
Quote from: stephendare on August 26, 2014, 04:58:43 PM
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.
Quote from: stephendare on August 26, 2014, 05:08:49 PM
Actually this is the lowest taxation rate in the history of the past 90 years, coredumped.
It's still crippling:
(http://i.imgur.com/2ciyDMF.jpg)
(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.
few jobs are moving in this deal, just the home country for taxation purposes
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.
Quote from: JeffreyS on August 26, 2014, 05:18:18 PM
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.
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.
Quote from: coredumped on August 26, 2014, 05:14:44 PM
It's still crippling:
Hardly.
(http://upload.wikimedia.org/wikipedia/commons/a/ae/Effective_Corporate_Tax_Rate_OECD_Countries,_2000-2005_Average.jpg)
QuoteU.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!
I don't care what anyone says, America is still the Land of the Free, and the Home of the Whopper!!! Damn Canadians, Ruining Americana!!! :'(
https://www.youtube.com/watch?v=qKBKeHk7f30 :D
Quote from: JeffreyS on August 26, 2014, 06:50:39 PM
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.
I do not, I believe the tax code should be reformed.
Quote from: finehoe on August 26, 2014, 07:04:28 PM
QuoteU.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!
yes, because large profitable corporations are usually multinational with a large portion of their revenue being taxed overseas reducing their effective rate. I work for a fortune 100 company and we are about 50% domestic, so our effective rate is around 25-27%
Quote from: stephendare on August 26, 2014, 05:25:02 PM
if you get frozen out of our market and have to pay import taxes to sell your good here, then you can also kind of frack yourself too.
Which will be the predictable result.
The question is what will be the charges paid for repatriation?
Companies pay import taxes now on anything imported unless it falls under NAFTA.
I was reading comments on a national blog site and the comments were crazy. Most were blaming Obama for the tax rate which has been in effect for quite some time. Why does Bush get a free pass? I'm not defending Obama just stating a fact. I am very sick of every ill of this country being blamed on Obama. It actually makes me like him more.
A former German citizen at this same site pointed out that Germany had a low corporate tax rate but the personal tax rate was through the roof.
And all the crazy talk about how the top 10% pay 90% of taxes. They still get huge tax breaks and the blogger failed to mention that the top 5% control 70% of the country's wealth. So of course they pay the most.
And the typical hard core right winger implied that the bottom 90% were essentially freeloaders. We want to sit on our butts and get handouts.
It's offensive and a lie of course.
(http://images.politico.com/global/2014/08/26/140826_bk_tim_hortons_wuerker_605.jpg)
well no one should be saying that they only bought Horton for inversion purposes. Breakfast is the last gold mine for the fast food people to fight over and Burger King is way behind McDonalds on that front. Buying Horton at least gives them a shot.
Quote from: stephendare on August 27, 2014, 09:21:51 AM
Quote from: fsquid on August 27, 2014, 09:21:05 AM
well no one should be saying that they only bought Horton for inversion purposes. Breakfast is the last gold mine for the fast food people to fight over and Burger King is way behind McDonalds on that front. Buying Horton at least gives them a shot.
thanks for republishing the public relations memo
by all means please tell me how a company that gets 80% of their sales in the US will get some huge windfall from this inversion? At the end of the day, its a hail mary play as donuts and burgers are declining as many in the population have shifted from those places to fast casual joints like Chipolte.
Why anyone, ever, would eat anything at a Burger King or Tim Horton's is a mystery to me. UGH!
Quote from: fsquid on August 27, 2014, 09:21:05 AM
well no one should be saying that they only bought Horton for inversion purposes.
That communist rag the
Wall Street Journal is saying it.
http://online.wsj.com/articles/burger-king-tim-hortons-merger-plan-raises-tax-inversion-issue-1409010049
Study: Burger King's move to Canada could save 1 billion in US taxesQuoteBurger King's plan to base its corporate parent in Canada after it acquires Tim Hortons will allow the company and its top shareholders to "dodge" $400 million to $1.2 billion in U.S. taxes from 2015 to 2018, according to a newly released report by Americans for Tax Fairness.
Burger King responded to the report on Wednesday, saying: "The analysis in the report is materially flawed and the figures do not accurately represent our facts and circumstances."
Miami-based Burger King Worldwide in August agreed to buy Tim Hortons in an $11 billion deal that will create the world's third largest fast-food chain. While Burger King will continue to be headquartered in Miami, the corporate parent will be based in Canada. Tim Hortons shareholders approved the deal on Tuesday, and it is expected to be completed on Friday.
Burger King's top executives have stressed that the deal wasn't driven by a desire for lower tax rates but by a growth strategy designed to create value through accelerated expansion. Daniel Schwartz, Burger King's chief executive told analysts in August that the company doesn't expect to achieve any "meaningful tax savings or meaningful changes in our tax rate." In fact, the company's effective tax rate in the United States is 27 percent, and in Canada, it will be about 26 percent, the company said.
The Americans for Tax Fairness' report found that by renouncing its U.S. corporate citizenship, Burger King would not have to pay $117 million in U.S. taxes on profits that it held offshore at the end of 2013. "Burger King has been able to indefinitely defer paying taxes on those profits under U.S. law; by becoming a Canadian company it may never pay U.S. taxes on those profits," the report said.
Burger King also may avoid an additional $275 million in U.S. taxes between 2015 and 2018 because it will no longer have to pay U.S. taxes on future worldwide profits, according to the report from the ATF, a coalition of 425 national and state organizations that advocates for tax reform.
In addition, Burger King's largest private shareholders could save as much as $820 million in capital gains taxes as a result of the inversion, the report said.
Read more here: http://www.miamiherald.com/news/business/article4409676.html#storylink=cpy
Burger King responded to the report on Wednesday, saying: "The analysis in the report is materially flawed and the figures do not accurately represent our facts and circumstances."
Yep, analysis was wrong, we will save twice what they listed in taxes.
^^^LOL
I am not anti foreign owned companies but I am pro American owned and for something as small as a drive through meal I can sacrifice BK for some other crappy fast food.
good for shareholders.
I havent spent a dime at BK since they left and took their business elseware...and i wont..a true American wouldnt
^ you do realize they haven't left yet right?
Quote from: tufsu1 on December 12, 2014, 08:02:11 AM
^ you do realize they haven't left yet right?
Wow that sure is important. ::)
"Burger King takes their talents to Canada"
Talents??????????
Quote from: ben says on December 12, 2014, 09:33:23 AM
"Burger King takes their talents to Canada"
Talents??????????
Talents, like in the Bible talents? Big old gold coin? That makes more sense.
Quote from: tufsu1 on December 12, 2014, 08:02:11 AM
^ you do realize they haven't left yet right?
they aren't "leaving", they will still have their HQs in Miami.
Quote from: fsquid on December 12, 2014, 11:29:27 AM
they aren't "leaving", they will still have their HQs in Miami.
QuoteFlorida-based Burger King announced in late August it would buy Tim Hortons and put the headquarters of the combined company in Canada.
http://www.reuters.com/article/2014/12/11/us-usa-tax-burgerking-idUSKBN0JP0CI20141211
^ from the article at the top of the thread
QuoteWhile Burger King will continue to be headquartered in Miami, the corporate parent will be based in Canada
My bad missed that. How many are they laying off from Miami?