TORONTO – Tim Hortons Inc, Canada’s biggest coffee and doughnut chain, said yesterday it earned a first-quarter profit of $90.9 million, up from $86.2 million in the same quarter last year.
The Oakville, Ontario-based company, which serves an estimated 7.5 out of every 10 cups of coffee sold in Canada, reported higher expenses related to new store openings and the launch of its credit card, aimed at cultivating customer loyalty.
The profit amounted to 66 cents per diluted share compared with 56 cents a year ago.
Revenues were up 4.8 per cent to $766.4 million compared with $731.5 million in the same quarter last year.
Analysts on average had expected a profit of 68 cents per share, according to estimates compiled by Thomson Reuters.
Same-store sales were up 1.6 per cent in Canada and 1.9 per cent in the United States.
Tim Hortons says it opened 23 restaurants in Canada and 11 in the United States in the quarter.
“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,” said Marc Caira, president and CEO.
“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.”