# Starbucks ( SBUX ) vs Tim Hortons (THI)



## obriast (Jul 22, 2013)

Which of these coffee stars would you pick up?


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## Freedom45 (Jan 29, 2011)

Personally, I have a long position in Tim Hortons. Got in a few years back around the $40 mark (I think my DCA'd entry point is sub $41), and have enjoyed the ride to near $60, while getting steady quarterly dividends, with annual hikes. Dividend isn't large, but steady and predictable. Plan to hold for the foreseeable future.

Not a SBUX owner, nor have I followed their stock lately, but I know I've considered a position in the past.


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## doctrine (Sep 30, 2011)

The only thing I don't like about Tim Horton's is the entry price. I would be probably be a buyer today at $45 or under, certainly under $40, but not at $60.


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## Sampson (Apr 3, 2009)

At present valuations? GMCR > SBUX > THI

THI does not have the same expansion plans or capacity that the others do.

SBUX owner - for a few years. Back then SBUX was at $15, and THI was at $33.


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## FrugalTrader (Oct 13, 2008)

SBUX @ $15? Congrats! Is that your biggest winner?


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## kcowan (Jul 1, 2010)

I got in on the THI IPO at 27.5 and continue to hold it. I missed the SBUX run up and find it overpriced.

(Interesting story here in Vancouver. At the Pacific Centre Mall, SBUX had a good operation at the north end of the mall and then a THI was opening right across the aisle. My wife, an SBUX client, thought it would have a tough time. After it opened, the lineups were equal at both. Different strokes!)


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## Sampson (Apr 3, 2009)

It is. Remember that was pre-credit crisis.

Uncontrolled expansion, no new products, still new emerging competition for McD, Peet's, on the store front, and that was when GMCR was really coming on strong.

After the tanking, re-introduction of Howard Schultz, contraction and closing of stores followed by controlled and targeted expansion, expansion into the home brew area via their VIA product and now "K-Cups" line, and more controlled expansion into emerging markets, Peet's acquisition etc.. This to me, was by far the most 'obvious' investment decision I ever made, still tough to watch it drop further.

BTW, it was actually around $17 when I bought


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## My Own Advisor (Sep 24, 2012)

Both are institutions. At the right price, both of them.  Just no cash right now, saving for a new buy with much lower P/Es than these.

Timmy's is an addiction for some people. Almost like buying Philip Morris.


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## Synergy (Mar 18, 2013)

Timmy's is an addiction for some people. Almost like buying Philip Morris.[/QUOTE said:


> - quote function not working for some reason?
> 
> Coffee / caffeine is a sin stock in disguise
> 
> I've been looking to start a position within this industry but I find the current pricing a little too expensive. I would buy both on weakness / a correction. If I had to choose today I'd be leaning towards SBUX - growth opportunity. I wait patiently.


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