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The case had been tailored for imparting business learning for undergraduate students and can be used for examination purpose. Highfields Capital Management (Highfields Capital), a US based hedge fund had made an investment in the Tim Hortons Inc (Tim Hortons), a leading Canada-based coffee-and-donut chain, in 2012. After raising its stake to nearly 4%, Highfields Capital proposed that management of Tim Hortons must initiate drastic steps like taking external debt to repurchase outstanding equity shares, spin off or sell distribution business and create Real Estate Investment Trust (REIT) which would take care of real estate assets. Through such proposed steps, Highfields Capital aimed at increasing shareholders' return. But, money mangers and analysts viewed that such steps might discourage long-term investors of the Tim Hortons. Some analysts believed that although Tim Hortons was under leveraged, raising debt level suggested by Highfields Capital might lead to the door of risk. On May 9th 2013, in Annual General Meeting of the shareholders, Tim Hortons had shown its interest to increase debt but firmly said that it would not increase the level of debt as expected by Highfields Capital. In due course, Tim Hortons appointed Marc Caira as a new President and CEO to lead the company effective from July 2nd 2013. In such leadership change, how Highfields Capital would sway Tim Hortons for financial makeover remained to be seen?