Tim Horton and Starbucks

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Introduction

In the industry while all brands and companies are surviving according to their conditions and dependency on customer's satisfaction, it is important to know which brand is leading the industry with proper analyst ion of the financial condition of that company in its industry. Basically, this report will evaluate and compare the background of two most valuable brands in the Canada named as Tim Horton and Star bucks with their financial condition.

Background of Tim Horton

Tim Horton is perhaps, Canada's biggest coffee chain established in 1964 by the hockey player named as Tim Horton.

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Initially, Tim Horton only serves coffee and donuts but now they just changed and informed their menu which includes everything like sandwiches, coffee, and soups etc. Tim Horton has a headquarter in Ontario and eatable places in both Canada and U.S. The research shows that 'According to the Canadian Restaurant and Foodservices Association and Statistics Canada, in 2004 our system represented 22.6% of the $14.0 billion quick service restaurant segment of the Canadian foodservice industry based on sales dollars.

Our nearest competitor, McDonald's, accounts for 18.1% of the Canadian quick Service restaurant, with the remaining 61% attributable to branded Chains, such as KFC®, Subway®, Wendy's®, Starbucks®, Second Cup®, Coffee Time and other independent establishments, no one from them accounts for more than 6.2%''. (Tim Horton INC., n.d.). There are many facilities provided by the Tim Horton with change in time. The main motive of the company is to provide better services to customers and good quality products with co ordination with their team members and creative ideas.

They want to be quality leader in all the things which they are doing and they will do in future.

Financial analysis of Tim Horton's

Tim Horton's financial summary reflects that company's financial performance changes with time. The research shows that 'During the fiscal year ended January 2012, the company realized $2,855 million in revenue and profit was $383 million. This represents a 12.5% increase in revenue but a 38.6% decrease in net profit of 38.6%, compared to 2010 . The Company has a current ratio of 1.3, and holds $126 million cash on hand. This indicates that Tim Horton's has a strong cash position and thus has the ability to expand' (Tim Horton's 2011: annual report, 2012).

Background of Starbucks

The journey of starbucks started from 1971 in Seattle. It was started by three teachers Jerry Baldwin, Gordon Bowker and Zev Siegel opened this store of coffee (starbucks.com, 2010). Howard Schultz joined Starbucks as the director of the company to control starbucks (StarBucks History And Background, n.d.). In 1987 Stabucks had 11 stores and fewer than 100 employees. Like this Starbucks developed from 1971 to 1990 a graet coffee shop. 'Second wave coffee' is represented by Starbucks. Starbucks provide the best customer service and it is considered to be the best luxurious brand of coffee in Canada. Starbucks is also in the business of tea, coffe ans other products like regular chocolate and chocolate coffee capsules etcetera. Also other services like free wifi is provided by Starbucks in the stores of the company.

Fiancial Statement of Starbucks

2018 2017

Sales Growth 2% 3%

Operating Income $3,883.3 $4,134.7

Sales growth of the company was 2% in the year 2018 while it was 3% in 2017. The operating income of the company was $3883.3 in 2018 and was $4134.7 means operating income was more in 2017 as compared to 2018. The assests of the company was $24,156.4 in 2018 and was $14,365.6 in 2017. While the liabilities of the company were $24156.4 in 2018 and in 2017 these were $14365.6. Company spends a huge amount on advertising it spent $260.3 million in 2018 and $282.6 million in 2017 respectively (Financial Data, n.d.).

We can conclude that Starbucks has more income and revenue than Tim Horton's because it is the best coffee although it has some limitations but every business has some limitations. On the other hand, Tim Horton's try to compare with Starbucks means Starbucks is more good brand compared to Tim Horton's. Coffee of Starbucks is expensive than that of Tim Horton's. Hence, it is considered to be luxurious brand in Canada. But this cost sometime cut the customers of Starbucks to Tim Horton's as Tim has coffee with low cost. There is no comparison with the taste of Starbucks.