Tim Hortons net climbs 12% in Q2
August 08, 2008
by Eric Schroeder
OAKVILLE, ONT. — Tim Hortons Inc. posted net income of C$74,974,000 ($70,322,000), equal to C$0.41 per share on the common stock, in the second quarter ended June 29, up 12% from C$67,239,000, or C$0.36 per share, in the previous year’s second quarter. Net sales rose 9% to C$335,873,000 ($314,974,000). Same-store sales grew 5.7% in Canada and 3.1% in the United States. "The strength of our model and customer offering resulted in strong sales and earnings growth in a challenging environment," said Don Schroeder, president and chief executive officer. "We were pleased with our store owners’ ability to meet the needs of our customers and reinforce our differentiated positioning as a destination for people looking for quality products at a reasonable price." During the second quarter, Tim Hortons opened 31 restaurants, which compared with 18 opened during the second quarter a year earlier. Tim Hortons said its U.S. business sustained a loss of C$190,000 in the second quarter, which compared with operating income of C$79,000 in the same period a year earlier. A total of eight restaurants were opened in the United States during the quarter. For the six months ended June 29, net income totaled C$136,794,000 ($128,232,000), or C$0.74 per share, up 8% from C$126,500,000, or C$0.67 per share. Sales rose 9% to C$971,009,000 ($910,237,000).