NEW YORK (TheStreet) -- Shares of Burger King Worldwide Inc. (BKW) are up 0.81% to $31.25 in pre-market trade as the fast food hamburger restaurant defended its acquisition of Tim Hortons (THI) as it came under criticism for its effort, backed by Berkshire Hathaway (BRK.A) billionaire investor Warren Buffett, to move the American brand to Canada, the Wall Street Journal reports.
Burger King yesterday announced its about $11 billion deal to buy Canadian-based Tim Horton.
The deal is a so-called inversion, as it will move Burger King's headquarters to lower-tax Canada. It is also structured to shield Burger King holders from capital-gains taxes, the Journal said.
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."