NEW YORK (TheStreet) -- Shares of Tim Hortons Inc. (THI) are soaring 19.43% to $75.05 this afternoon following the Canada-based doughnut company's announcement of its merger with Burger King Worldwide (BKW) this morning.
The Deal's Jonathan Marino and Sarah Pringle take a closer look at the possible merger of Burger King and Tim Hortons:
About 9.7 million shares of Tim Hortons were traded by 3:03 p.m., compared to the daily average volume of about 214,000 shares.
The stock reached a lifetime high of $77.80 today.
Separately, TheStreet Ratings team rates TIM HORTONS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate TIM HORTONS INC (THI) a BUY. This is driven by multiple strengths, 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 revenue growth, growth in earnings per share, reasonable valuation levels, increase in stock price during the past year and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."