TIM HORTONS INC. $58 - Toronto symbol THI

TIM HORTONS INC. $58 (Toronto symbol THI; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 151.0 million; Market cap: $8.8 billion; Price-to-sales ratio: 2.8; Dividend yield: 1.8%; TSINetwork Rating: Average; www.timhortons.com) has opened its first coffee-and-donut store in Kuwait under its franchise deal with Dubai-based Apparel Group. This is the company’s 32nd store in the Persian Gulf. It also has 3,468 stores in Canada and 807 in the U.S.

In February 2011, Tim Hortons signed a master license agreement with the Apparel Group to open 120 outlets in the United Arab Emirates, Qatar, Bahrain, Kuwait and Oman over a five-year period. Teaming up with well-established local companies like Apparel Group cuts the risk of expanding in unfamiliar markets.

Tim Hortons is a buy.

A professional investment analyst for more than 30 years, Pat has developed a stock-selection technique that has proven reliable in both bull and bear markets. His proprietary ValuVesting System™ focuses on stocks that provide exceptional quality at relatively low prices. Many savvy investors and industry leaders consider it the most powerful stock-picking method ever created.