Tim Hortons' simplified operations lift Q1 sales

Tim Hortons Inc. announced its Q1 results this week, including a 1.6 percent same-store sales increase in Canada, and a 1.9 percent same-store sales increase in the US.

This is compared to negative sales in both segments during the same period last year (0.3 percent and 0.5 percent, respectively).

"We made continued progress in the first quarter as we focused on aspects of our business where we could make an immediate impact, including simplifying our operations, enhancing our restaurants and introducing menu innovations," CEO Marc Caira said in a press release. "Our organization has mobilized quickly to begin executing on the strategic plan we announced in February. We will see further progress this year in key areas of our strategic roadmap as we seek to drive sustainable long-term growth."

Segmented performance

Same-store sales growth was higher than Q1 of 2013 in both Canada and the U.S., despite ongoing competitive environments, which have carried over from last year, and unfavorable weather conditions, the company said.

Canadian same-store sales growth was due to gains in average check, driven by product mix and pricing, partially offset by a decline in same-store transactions. Systemwide transactions grew as a result of new restaurants added to the system. Twenty-three restaurants opened in Canada during the period.

Same-store sales in the US segment increased by 1.9 percent, also driven by gains in average check resulting from product mix and pricing, and partially offset by a decline in same-store transactions. Systemwide transactions continued to grow, the company said. Eleven restaurants opened in the US during the quarter.