NEW YORK (TheStreet) -- Shares of Tim Hortons (THI) are up 9.01% to $81.45 in early market trading Tuesday after the Canadian doughnut and coffee company finalized its merger deal with Burger King Worldwide (BKW) .
Tim Hortons shareholders will receive $65.50 in cash and 0.8025 common shares of the new company for each share owned under the terms of the merger agreement.
Burger King said the deal is worth about $11 billion and will create the world's third largest fast-food restaurant company with $23 billion in sales and 18,000 restaurants in 100 countries.
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."