Oakville, Ontario-based Tim Hortons Inc. has reported results for its first quarter 2011 ended April 3, which included an earnings increase of 7.5 percent to $0.48 (Canadian) per share.
Other highlights include a 10.4 percent boost in total revenues from Q1 '10, to $643.5 million. Revenues benefited from higher distribution sales, rents and royalties, and franchise fees.
Same-store sales got a lift from the company's U.S. segment, which was up 4.9 percent following a growth of 3 percent in the same period last year. Canadian same-store sales were up 2 percent.
"Our Canadian same-store sales growth was notable given the sales impact of significantly increased redemptions of higher food and beverage prizes as part of our investment in the 25th anniversary of the Roll Up the Rim to Win promotion and the effect of heavy snowfalls in key markets," Don Schroeder, president and CEO, said in a statement. "Our U.S. business continued its progression with strong same-store sales performance and increased earnings contributions, as we executed our growth strategies."
As a result of the lost contribution from Maidstone Bakeries, first quarter operating income declined, as anticipated, compared to the same period last year. Operating income was $120.6 million compared to $127.7 million last year. The loss of contribution from Maidstone Bakeries was approximately $13 million.
