New sandwich, growth plump up Tim Hortons profit

February 8th, 2007, 04:54 AM



By Blaise Robinson

TORONTO (Reuters) - Tim Hortons Inc.'s fourth-quarter profit more than tripled, helped by hearty sales of a new breakfast sandwich, restaurant growth and a writedown in its year-earlier results, the coffee and doughnut chain said on Wednesday.

Tim Hortons, spun off last year by U.S.-based fast-food chain Wendy's International , earned C$68 million ($58 million), or 35 Canadian cents a share, in the quarter ended December 31.

That's well up from a profit of C$16 million, or 10 Canadian cents a share, a year earlier, when earnings were eroded by a write-down in goodwill and asset impairment.

Analysts had predicted an average profit of 34 Canadian cents before exceptional items, according to Reuters Estimates.

"Stronger than forecast revenue and cost containment (drove) better than expected results," RBC Dominion Securities analyst Irene Nattel wrote in a research note.

"Management defied investor skepticism over their ability to open 80-100 units in the fourth-quarter and opened 111, of which 31 were in the U.S.," wrote the analyst, who had expected the company to earn 33 Canadian cents a share.

During the quarter, Tim Hortons opened 111 restaurants, up from 93 in the same period a year earlier. It now has more than 3,000 outlets, mostly in Canada.

Revenue for the quarter grew 16 percent to C$467 million.

Sales at stores open for at least a year -- a key measure of a retailer's health -- swelled 9.3 percent in Canada and 8.3 percent in the United States, plumped considerably by the introduction of a new breakfast sandwich.

"Our breakfast sandwiches have been well received by customers both in Canada and the United States and we continue to see that it is getting strong demand within our restaurants," Chief Executive Officer Paul House told analysts during a conference call.

House, who has been named chairman of the company to replace James Pickett, didn't provide a breakdown of same-store sales figures which would give analysts an idea of the impact of the new sandwich.

Launched last April in the United States and six months later in Canada, Tim's new breakfast offerings compete head to head with McDonald's Corp.'s Egg McMuffins.

The company, which forecast 10-percent growth in operating income in 2007, said it expects to open between 120 to 140 restaurants in Canada this year, and between 60 to 80 restaurants in the United States.

Shares of Tim Hortons rose 22 Canadian cents, or 0.6 percent, to C$37.27 in afternoon trading on the Toronto Stock Exchange. The stock has climbed about 37 percent since its initial public offering last March.

($1=$1.18 Canadian)

Copyright © 2007 Reuters Limited.

February 8th, 2007, 05:12 AM

I am one of the very few people I know who actually detests Timmie's. I find their coffee the worst, too weak, and their doughnuts small and too expensive.

February 8th, 2007, 05:59 AM

I have some pictures of Tim Horton's Ive taken over the last few weeks and they are disgusting --Why I did this I had a Timmy's about a month ago and felt sick aft ward --I could only image the cream dispenser or the spoon they reuse to stir coffee with (gross)

Tim Horton's has become a filthy mess

I witnessed

-dust grime and what not on all every Monitor in the place and all over the city ,
--cardboard used to block sink area with old crap stuck to it
--floors with all sorts of food
crevices filled with sludge
half wiped surfaces and appliances
employees with spills allover there cream color shirts --thats gross

counters and glass that needed repairing
display cabinets with items form weeks actually got pics of the same items (cookie piece) left there for weeks

I could go on but cant stand to even think of it

I'm so turned off, I cant show the pics just yet

I really would like to give Timmy's the opportunity to clean up --a few weeks at best then I'm unleashing

So I don't care about the sandwich ,I care about what is going into the sandwich that shouldn't be

February 8th, 2007, 06:02 AM


I'd certainly be interested in viewing these pictures! Do share!

February 8th, 2007, 06:25 AM


heyyyyyyyyyy, timmies rocks! their ice cappucinos are to die for!

February 8th, 2007, 06:32 AM

You'll be dieing all rite from some bacterial infection --lol

I cant share yet ---If its happening in my area go to you're local Tims I'm sure Its there as well

They use to be so clean ,now as equipment ages and counter deteriorate and aren't replaced its unacceptable

February 8th, 2007, 06:41 AM

I have noticed quite a number of teenagers like Timmies and their ice caps!