Why Burger King (BKW) Stock Is Skyrocketing Today

NEW YORK (TheStreet) -- Shares of Burger King Worldwide Inc  (BKW) are surging, up 14.16% to $30.95 in pre-market trading as the burger chain is in talks to buy the doughnut giant Tim Horton Inc. (THI) , Bloomberg reported.

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Burger King hopes to execute a tax inversion that would move its headquarters to Canada, Bloomberg added.

Canada's corporate tax rate is 26.5% compared to 40% in the U.S., according to accounting firm KPMG.

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Separately, TheStreet Ratings team rates BURGER KING WORLDWIDE INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate BURGER KING WORLDWIDE INC (BKW) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

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