OAKVILLE, Ont. — Tim Hortons’ 2014 third-quarter results indicate strong same-store sales (SSS) growth in Canada and the U.S., driven primarily by higher priced menu items and innovations, including the Spicy Crispy Chicken Sandwich and Dark Roast coffee. However, the proposed transaction with Burger King Worldwide, Inc. has cost the company $27.3 million, resulting in a decreased net income.
“We have strong momentum in our business, supported by early stage execution of our strategic plan. We are pleased with our ongoing growth and evolution, which we believe is positioning our brand for long-term success,” said Marc Caira, president and CEO. “With our strategic transaction announced in August, we can build on our momentum and participate in the creation of a global powerhouse in the quick-service restaurant sector. We expect Tim Hortons to significantly expand its reach as a strong, independent brand within the new company.”
Some highlights:
- System-wide sales increased 7.5 per cent as a result of same-store sales growth of 3.5 per cent in Canada and 6.8 per cent in the U.S. as well as new restaurant development
- Total revenues grew 10.2 per cent to $909.2 million, compared to $825.4 million last year
- Operating expenses increased by 10.2 per cent
- The proposed transaction with Burger King Worldwide, Inc. cost the company $27.3 million
- The net income was $98.1 million, a decrease of $15.7 million
