Tim Hortons Reports Big Q1 Gains


TORONTO — Don’t bother trying to tell the CEO of Canada’s largest restaurant chain that the country is still pulling itself out of the recession.

Today, Tim Hortons Inc. reported an 18.7 per cent jump in adjusted profit on higher revenues and solid same-store sales in Canada in the first quarter, ended April 4. Spurred by successful new menu items and strong marketing and operational programs, same-store sales in Canada improved 1.8 percentage points to 5.2 per cent, compared with 3.4 per cent in the first quarter of 2009. Tim Hortons earned $78.9 million (on 45 cents a share), compared with $66.4 million (37 cents) in the first quarter of 2009.

The latest results do not include profits from Tim’s non-controlled assets derived from non-owned restaurants or the joint-venture deal with a Swiss bakery partner.

“Our business achieved strong sales and earnings performance this quarter,” said Don Schroeder, president and CEO, in a press release. “Our competitive advantages continue to position our business among the leading companies in our sector, and we look forward to further building upon that position.”

Revenues rose 4.8 per cent to $582.6 million, while operating income climbed 15 per cent to $127.7 million on higher rents, royalties and distribution income from its restaurants.

The results from its U.S.-based stores were not as strong. Same-store sales dipped by 0.2 percentage points to three per cent, largely due to the ongoing effects of the American recession.

Operating income in Canada rose 14.3 per cent to $132.4 million. In the U.S., operations saw a $300,000 loss. Tim Hortons opened 20 new restaurants in Canada and four in the United States during the quarter.

To read the entire quarterly report, click here.


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