Tim Hortons profit rises on higher U.S. sales

Thu Aug 9, 2012 8:26am EDT
 
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(Reuters) - Tim Hortons Inc THI.TO THI.N reported higher quarterly profit on Thursday as it opened new restaurants and sales jumped at established U.S. locations.

Canada's dominant coffee chain, a major player in fast-food breakfast and lunch markets, said a lower effective tax rate also helped results for the second quarter.

The company said new restaurant development boosted system-wide sales, which rose 6.0 percent on a constant currency basis. As of July 1, it had 3,326 Canadian stores, an increase of 137 from a year earlier.

Same-store sales, a key measure for retailers, rose 4.9 percent in the United States and 1.8 percent in Canada.

Tim Hortons net income for the quarter ended July 1 rose to C$108.1 million ($108.7 million), or 69 Canadian cents per share, from C$95.5 million, or 58 Canadian cents, a year earlier. A share repurchase program boosted earnings per share.

Total revenue rose 11.8 percent to C$785.6 million.

Analysts, on average, had been expecting earnings of 69 Canadian cents a share, according to Thomson Reuters I/B/E/S.

(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by Don Sebastian)