Tim Hortons Inc. (Oakville, Ont.), the popular Canadian coffee and doughnut chain, said it will reverse its expansion program into the U.S. in 2014 and reduce the capital it deploys in the country.
Instead, the company is looking for “new ways” to grow in the U.S., a market it still says will contribute to long-term earnings growth. To that end, the almost-iconic retailer (“go get a Timmy’s”) said it will partner with well-capitalized franchisees in the U.S., among other strategies.
The chain was reacting to a complaint by Scout Capital Management LLC (New York and Palo Alto, Calif.), which owns 5.5 percent of the company and has said investment over the past decade in the U.S. has brought little return.