TORONTO —
Consumer perception of the Tim hortons brand declined, prompting Bank of Montreal to downgrade shares of the parent company's catering brand International
This suggests that public discontent could hurt sales at Canada's largest AliExpress company.
Restaurant chain service
A year ago, after Tim Holden fell from the fourth company to the 50 most respected companies in Canada, the BMO Capital Market conducted its own online survey to investigate consumer concerns about Tim Holden ·
"Overall, although Tim Hortons's brand awareness is still very positive for respondents (
75 points positive, only 11 points negative)
Peter Sklar, an analyst at BMO, wrote in a report on Monday: "Over the past 12 months, participants' perceptions of Tim Hortons have changed significantly . ".
Respondents in an online BMO survey of 700 Canadians said their views on Tim Holden became more positive last year, and 28 said their views became more negative.
Sklar pointed out that during the same period, they remained neutral about Starbucks, and their impression of McDonald's McCaffey improved.
"In those who express their views (of Tim Hortons)
People who have become more negative than said that this is because there is a negative report on Tim Holden in the news, and 71 said that negative attention will lead them to consider reducing their attention to Tim Holden.
27 points said they would prefer to go to another coffee retailer.
International restaurant brand Limited
, Set to report first-
Quarterly results released on Tuesday showed the company's share price fell by 23 percentage points in the past six months.
The BMO survey also found that Tim Hortons's other innovations, including espresso drinks and mobile apps, "didn't seem to get traction, and a $1 coffee promotion was held with consumers competing with McDonald's, there is a significant consumer awareness.
Sklar also revised his first quarter.
Store sales estimates for Tim Hortons Canada range from previous 0 estimates to 0. 8 per cent. "Although the same --
Tim Hortons Canada's store sales have minimal impact on short positions
Long term earnings from international restaurant brands, we found that stocks tend to be traded the same
Store sales performance.
BMO lowered the stock rating from excellent performance to excellent market performance and lowered the target price from $70 to $58.
The news came after a long period of turmoil in the international food and beverage brand Tim Hortons division, which faces ongoing protests and lawsuits from a group of franchisees, the franchisees protested a series of headquarters practices, which were made in 2014 by Brazilian hedge fund 3G Capital, a favorite Canadian brand.
Earlier this month, the federal government of the Great White North Franchisee Association said the new management failed to deliver on some of the promises made to the government in the acquisition transaction.
This includes a commitment to maintain the franchisee relationship, rent and royalty structure within five years, and to maintain the current level of employment at Tim's restaurant.
After some franchisees in Ontario reduced their employee benefits in January to cope with the province's rising minimum wage, they drew outrage from labor groups and negative public attention.
They retorted that the headquarters did not allow them to raise menu prices, like other chain stores such as McDonald's, with rising wages. when the 19-
The board of directors of Tim Hortons franchisees meets regularly with headquarters to convene 600-
The Association of splinter franchisees, a Plus member, said in a letter that by attracting negative media attention and contacting the federal government, it has contributed to the brand's damaged reputation.
Email: hshaw @ nationalpost.
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