OAKVILLE, ONT. — Net income at Tim Hortons Inc. in the year ended Dec. 31 rose 36%, totaling C$259,596,000 ($219,140,148), equal to C$1.40 per share on the common stock. This compares with income of C$191,091,000, or C$1.19, in 2005.
Net sales for the year also showed substantial growth, totaling C$1,659,549,000, up 12% from C$1,482,027,000 in 2005. Same-store sales grew 7.5% on the year in Canada and 8.9% in the U.S., both improvements over previous year results.
For the fourth quarter ended Dec. 31, net income rose sharply, totaling C$67,855,000, equal to C$0.35 per share on the common stock, compared with income of C$16,430,000, or C$0.10, in the fourth quarter of 2005.
Net sales for the quarter totaled C$466,457,000, up 15% from C$403,859,000 in the same period last year. Same-store sales for the quarter rose 9% in Canada and 8% in the U.S., compared with 6% and 7% in the same period of 2005, respectively.
"2006 was another milestone year for Tim Hortons as we became a separate public company and finished the year with very strong fourth-quarter results," said Paul House, chairman and chief executive officer of Tim Hortons. "The fourth-quarter results were driven by a strong promotional calendar, including our breakfast sandwich launch in Canada, as well as solid store level execution across the chain.
"In 2006, we exceeded or achieved our previously announced targets in same-store sales growth and new restaurant development and continue to feel positive about the prospects for the company in the coming year."
Following the company’s spin-off from Wendy’s International, Inc., James Pickett, chairman of the board of Wendy’s, and Kerrii Anderson, chief executive officer and president of Wendy’s, resigned from the Tim Hortons board of directors, effect Feb. 1. Mr. Pickett will be replaced as chairman of the board of Tim Hortons by Mr. House.
Looking ahead, the company has set its targets for 2007. These include long-term same-store sales growth of 4% to 5% in Canada and 6% to 7% in the United States; 120 to 140 new restaurants in Canada and 60 to 80 new restaurants in the United States; and operating income growth of 10% for the full year.
"We have established these targets based on our belief that the company is well-positioned to show solid, consistent, long-term growth, and we are optimistic about the company's ability to meet these 2007 targets," said Cynthia Devine, executive vice-president and chief financial officer for Tim Hortons.