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Why Jim Cramer Says Sell Tim Hortons (THI) Stock After Burger King (BKW) Merger

NEW YORK (TheStreet) -- TheStreet's Jim Cramer says investors should sell Tim Hortons (THI) in the wake of the merger with Burger King (BKW) .

Tim Hortons' new valuation is now the same as Starbucks (SBUX - Get Report) , which has 7% consistent growth. Cramer says Starbucks is doing better in Canada that Tim Hortons. He adds this is starting to become a situation where investors think they are supposed to love this deal because Warren Buffett is involved. But Cramer says Buffett is taking a coupon and getting a good yield.

Cramer thinks Tim Hortons has gone up enough. He says Burger King makes "bad food" and Tim Hortons makes doughnuts. "These have not been exactly where you want to be on a secular trend," Cramer says. He points out that in the end, these are restaurants and the restaurants aren't doing all that well.

Must Watch: Jim Cramer Says Starbucks is Doing Better in Canada Than Tim Hortons

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THI Chart THI data by YCharts

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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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SYM TRADE IT LAST %CHG
BKW $35.50 0.00%
SBUX $55.94 3.70%
THI $35.93 -2.70%
AAPL $112.75 2.80%
FB $89.72 2.90%

Markets

Chart of I:DJI
DOW 16,654.77 +369.26 2.27%
S&P 500 1,987.66 +47.15 2.43%
NASDAQ 4,812.7080 +115.1720 2.45%

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