OAKVILLE, Ont. — Tim Hortons’ total revenue grew 9.3 per cent to $874.3 million in the second quarter of 2014. Successful product innovation and launches resulted in strong sales growth.
“Guests have been responding favourably to our menu and technology innovation, resulting in good momentum in our business,” said Marc Caira, president and CEO. ”Our second-quarter results reflect strong organizational alignment and execution of our Winning in the New Era strategic plan.”
In Canada, growth is attributed to increased sales in new menu items, including the new crispy chicken sandwich, the turkey sausage hot breakfast sandwich and the enhanced hash browns. The Canadian segment also benefited from increased franchise fee income; the company opened 29 restaurants in Canada in the second quarter.
Increased sales in the U.S. are attributed to the introduction of cold beverage items, including the frozen hot chocolate and improvements to the iced capp. The company opened one new restaurant in the U.S. in the second quarter and had previously signed a development agreement with a new partner to open 25 Tim Hortons locations in Richmond County, N.Y. and Middlesex County, N.J., in the next 10 years. The company has now completed six development agreements in the U.S., representing approximately 135 new restaurants over 10 years.