Tim Hortons profit jumps to $90 million
Tim Hortons Inc. says it earned a first-quarter profit of $90.9 million, up from $86.2 million in the same quarter last year.
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.
The coffee chain says its operating expenses increased by 7.3 per cent in the quarter due to such things as increased rent, renovations and new restaurant openings.
In February, Tim Hortons announced it was pulling the Cold Stone Creamery brand from its Canadian restaurants, as part of bigger changes that have included removing about two dozen items from the menu since last fall.
"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," president and chief executive Marc Caira said in a statement.
"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 road map as we seek to drive sustainable long-term growth."