Tim Hortons Inc. said new products, like Specialty Bagels and Real Fruit Smoothies, as well as operational improvements, contributed to a positive third-quarter financial report, including a 40-percent increase in profit.
For the quarter ended Oct. 2, Tim Hortons reported net income of $103.6 million, or 65 cents per share, in Canadian dollars, compared with earnings of $73.8 million, or 42 cents per share. Revenue increased 8.4 percent to $726.9 million.
Same-store sales for Tim Hortons’ 3,225 units in Canada increased 4.7 percent during the quarter. At its 645 U.S.-based units, same-store sales rose 6.3 percent. The company opened 41 new restaurants in Canada and 23 new units in the United States during the quarter, it said.
Tim Hortons opened its first unit outside North America in September in Dubai, United Arab Emirates. Approximately five UAE restaurants are scheduled to open this year. Tim Hortons’ master license agreement there calls for 120 units over a five-year period.
“Operating conditions in North America continued to be challenging, and the strength of our sales performance is a great testament to our strong price-value brand position with our guests,” said Paul House, Tim Hortons president and chief executive. “We continued to innovate in the third quarter and execute our strategic growth plans to build our business.”
House added that Tim Hortons soon would roll out its Tim’s Café Favourites — a line of espresso-based lattes, mochas and cappuccinos — to nearly 3,000 units in Canada and the United States. The Canadian system also will receive digital menu boards, and will soon extend breakfast hours nationwide to noon, he said.
Oakville, Ontario-based Tim Hortons has opened 77 locations in Canada and 43 units in the United States in the year to date.
Contact Mark Brandau at [email protected].
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