UPDATE: Goldman Sachs Downgrades Tim Hortons to Sell on Moderate Same-Store Sales

Goldman Sachs reduced its rating on Tim Hortons

from Neutral to Sell on declining traffic to stores. Goldman Sachs commented, "We lower our 2012-2014 EPS estimates to C$2.72/C$3.06/C$3.34 and downgrade THI shares to Sell from Neutral as we see better opportunities elsewhere within our Restaurants coverage. We are concerned about more moderate recent SSS trends as they are underpinned by declining same restaurant traffic. This may be indicative of impending Canadian saturation or a sustained step-up in QSR competition in the region. We see -5% downside in THI shares versus 7% average upside across the sector." Tim Hortons closed at $52.89 on Friday.