Here’s our Pick of the Month

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TIM HORTONS $57.94 (Toronto symbol THI; TSINetwork Rating: Average) (905-845-6511; www.timhortons.com; Shares outstanding: 147.1 million; Market cap: $8.5 billion; Dividend yield: 2.2%) operates 3,588 coffee-anddonut shops in Canada, 859 in the U.S. and 38 in the Persian Gulf. In the three months ended December 31, 2013, sales rose 10.7%, to $898.5 million from $811.6 million a year earlier. Same-store sales gained 1.6% at its Canadian outlets and 3.1% in the U.S. Earnings per share, before one-time items, rose 15.9%, to $0.80 from $0.69. The company aims to extend its lead on competitors like Starbucks and McDonalds. Its plans include simplifying its menu displays and speeding up service, both in-store and at the drive-through. As well, it will likely introduce new items aimed at younger customers, such as milk- and juice-based drinks and healthier options. Tim Hortons may also launch a new dark roast coffee blend. For the past 49 years, the company has had huge success with its medium roast,…