NEW YORK (TheStreet) -- Shares of Burger King Worldwide Inc. (BKW) are down by -3.15% to $31.38 on heavy volume in early afternoon trading on Tuesday, reversing the gain the stock began in pre-market trading following its Tim Hortons Inc. (THI) merger announcement.
Burger King said it's purchasing the Canada-based doughnut chain for almost $11 billion, creating the world's third largest fast-food-company, and moving its business headquarters to Canada.
So far this afternoon, 15.97 million shares of Burger King have changed hands as compared to its average daily volume of 391,000 shares.
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The acquisition helps Burger King grow internationally as Tim Hortons is the largest seller of coffee and doughnuts in Canada, Bloomberg reports.
TheStreet's Jim Cramer explains why investors should sell Tim Hortons:
Tim Hortons stock continue to surge due to the deal with Burger King, shares are higher by 8.62% to $81.16.
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."