OAKVILLE, Ont. — Tim Hortons Inc. recently made official that which most Canadians sitting in drive-thru lines might have already assumed: the coffee business is good. The positive sales report from the company comes as part of its recently announced results for the fourth quarter and full year, ended Jan. 3.
“Our focus on being relevant to our customers and responding to their needs continues to position Tim Hortons among the leaders in the North American restaurant sector. Our record revenue and earnings performance in 2009 once again demonstrated the resiliency of our brand in difficult economic circumstances, and we were pleased with the ability of our system to continue to successfully grow in challenging times,” said Don Schroeder, president and CEO.
According the company release, fourth quarter system-wide sales grew 13.4 per cent, benefiting from an extra week of sales over the comparable period, same-store sales growth and restaurant development. Total revenues were $615.3 million, an increase of 9.2 per cent compared to the $563.7 million made last year.
On a full-year basis, system-wide sales increased 7.9 per cent, and total revenues increased by 9.7 per cent to $2.24 billion compared to $2.04 billion in 2008.
The release also provides a look at the Canadian and U.S. markets individually. “Both operating segments enjoyed strong financial and sales performance in the quarter, benefiting from the strength of our brand position, marketing, promotion and menu activities,” it reads.
On this side of the border, same-store sales grew 3.4 per cent in the fourth quarter and 2.9 per cent on a full-year basis. In fact, Canadian same-store sales accelerated in each consecutive month of the quarter and experienced continued momentum heading into the first quarter.
South of the 49th parallel, Tim’s says the U.S. segment increased same-store sales by 2.1 per cent in the fourth quarter and 3.2 per cent on a full-year basis, outpacing the majority of restaurant companies that reported U.S. same-store sales for this time period.
For the full report, click here.
