OAKVILLE, Ontario — Canadian same-store sales at Tim Hortons Inc. were up 3.8 percent for the third quarter ended Sept. 28, 2008, while U.S. same-store sales were down 0.6 percent, the company announced. The bulk of the increase in Canadian comps was due to previous price increases
Total revenues rose 3.8 percent to $509 million (Canadian dollars) compared to $490.5 million in the same period last year.
Net income was up 16.9 percent to $78.8 million (Canadian dollars) compared to $67.4 million in the third quarter of 2007. The higher growth was the result primarily of a lower effective tax rate during the quarter of 32.5 percent, versus 35.2 percent in the comparable period of 2007. The decrease in effective tax rate was due primarily to a lower Canadian statutory rate in the third quarter as well as items that impacted the effective tax rate in 2007 that did not recur this year.
The company opened 49 restaurants during the quarter, compared to 40 units in the same period of last year. A total of 19 restaurants were opened in the U.S. this quarter, and 30 units year to date.
Total revenues and sales growth were both affected by the company's continued initiative to convert company-operated restaurants to an owner-operator model, reducing revenues from company-operated restaurants. There were 27 net fewer company-operated restaurants at the end of the quarter versus the prior year, bringing the total number of company-operated restaurants in the system to 43 compared to 70 in the same period of 2007. Revenues from company-operated restaurants were down 30.4 percent, or $3.9 million, compared with last year. A total of 98.7 percent of the systemwide restaurants are now franchised.
Corporate developments
The board has appointed Mr. Ronald W. Osborne as a director of the company. Osborne has been the chairman of the board of directors of Sun Life Financial Inc. and Sun Life Assurance since May 2005.
