Executive Summary This case study addresses the issues faced by Kelwhit & Torilaine Enterprises Ltd (K&T) and helps inform decisions about K&T's future growth direction. The key question is whether K&T needs to acquire more stores to expand the business under the current circumstances. The recommendation I would like to give to K&T is to set up a proper strategy to expand the size of the company to increase the market share and maximize the net profit of K&T. Detailed recommendations to achieve K&T's financial goal include: Require the opening of more stores at Tim Horton's headquarters so that K&T can capture more market share by increasing the company's sales and broadening its reputation in the region of Calgary. Sign a new agreement with major food suppliers such as GFS and SAPUTO to get more competitive prices, control product waste and excessive inventory as K&T is getting bigger and overall operating cost is increasing. Standardize the incentive program such as bonuses and holidays to increase loyalty and reduce turnover. Hire a general manager to connect the business owner and store managers. Consult the professional accountant to optimize tax planning and save money on taxes and payment GST. Participation in community events in store area event to market products and attract more potential customers. If the above recommendations are implemented correctly and monitored periodically, they should lead to improved financial performance in the future. Introduction K&T Enterprises Ltd is the largest Tim Hortons franchisee in Western Canada. After nearly 18 years of growth, this company has become a key player in its industry in Canada. The purpose of my report is to evaluate the current situation and strategic plan of K&T in order...... middle of the document......41058 63.00% 61% 66%Operating expensesSelling, general and administrative expenses 442767 480192 409717 25.20% 28.42% 25.72% Total operating costs 442767 480192 409717 25.20% 28.42% 25.72% Operating result 196959 189073 131341 11.800% 0.58% 8.2800000000000000%Or others income (Costs) -1532 -988 -1033 -0.09% -0.0585% -0.06% Income (losses) before income taxes 195427 188085 130308 11.71% 10.52% 8.22 %Income taxes -3852.7 -2580 -6041.33 -0.22% -0.15% -0.38%Net profit 199279.7 190665 136349.33 11. 49% 10.37% 7.84% Gross Profit Margin 11.80% 10.58% 8.28% Operating Profit Margin 11.71% 10.52% 8.22% Net Profit Margin 11.49% 10.37% 7.84%Reference: http://www.slideshare.net/sidkauts/external-environmental-analysis-of-tim-hortons-gourav-manpreet