News

Tim Hortons turns in strong Q3

November 9, 2011

Tim Hortons Inc. has announced results for its third quarter ended Oct. 2, citing a strong same-store sales performance for both the Canadian and U.S. systems.

Canadian same-store sales were up 4.7 percent, while U.S. sales increased 6.3 percent from the same period last year.

Consolidated third quarter systemwide sales increased 8.2 percent on a constant currency basis. Total revenues grew 8.4 percent to $726.9 million compared to $670.5 million in the prior year.

During the quarter, Tim Hortons opened a total of 64 locations in North America.

"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. We continued to innovate in the third quarter and execute our strategic growth plans to build our business," said Paul House, executive chairman, president and CEO.

The quarter was boosted by product offerings such as Real Fruit Smoothies and Specialty Bagels.

The momentum has already carried over into the beginning of Q4, as Tim Hortons just announced plans to extend its coffee line with espresso-based lattes, mocha lattes and cappuccinos. The company also plans to introduce digital menu boards across the chain in Canada, and extend breakfast hours nationally to noon.

In the U.S., same-store sales performance benefited from increased average checks due to pricing in the system and favorable product mix, and also due to moderately higher transactions. Growth was supported by enhanced menu and marketing and promotional efforts designed to create higher brand awareness and increase guest traffic.

Another highlight from the quarter was the brand's first restaurant opening outside of North America. The company signed a Master License Agreement earlier this year that targets up to 120 multi-format restaurants in the Gulf Cooperation Council over five years, with five locations exepcted to open this year. The first of the planned five locations opened for business in September, with the others planned later in the fourth quarter. Initial response in the local market has been highly positive, according to the company.

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