UPDATE 4-Tim Hortons names new CEO; profit and stock drop
* Nestle executive Marc Caira named CEO
* Company to consider new U.S. expansion plan, more debt
* First-quarter earnings drop 3 percent
* Same-store sales lower in both Canada and U.S.
* Shares fall on TSX and NYSE
By Euan Rocha and Susan Taylor
TORONTO, May 8 (Reuters) - Tim Hortons Inc named a long-time Nestle executive as its new chief on Wednesday, a job that will be no easy task given drooping demand at the Canadian coffee and doughnut chain and a push by a U.S. hedge fund for better returns.
Shares of Tim Hortons, which boasts that it sells eight of every 10 cups of coffee sold in Canada, fell more than 2.5 percent after the company posted its first decline in established store sales since its 2006 initial public offering.
The company, under pressure from hedge fund Highfields Capital to boost shareholder returns, said it is considering the Boston-based fund's key demands. But any change will await its new CEO, Nestle veteran Marc Caira, a 59-year-old Canadian. Continued...