May 9, 2012 / 12:17 PM / in 6 years

UPDATE 2-Tim Hortons profit rises on sales growth

* Q1 EPS C$0.56 vs C$0.48 year earlier

* Revenue up 12 pct at C$721.3 million

* Same-store sales up 5.2 pct in Canada

May 9 (Reuters) - Tim Hortons Inc reported 10 percent rise in quarterly profit on Wednesday on strong sales growth at its coffee shops in Canada and the United States.

The company , Canada’s dominant coffee and doughnut chain, also said Paul House would stay on as chief executive until December 2013 or the appointment of a new CEO, whichever comes first. It gave no update on its search for a successor, first announced in May 2011.

Sales for the quarter ended April 1 at outlets open at least 13 months rose 5.2 percent in Canada and 8.5 percent in the United States.

In Canada, all of that growth came thanks to customers spending more during each visit, but in the United States, growth in the number of transactions helped sales as well.

The Oakville, Ontario-based company said “robust product introductions” boosted sales at established stores.

Tim‘s, one of Canada’s most recognized brands, has launched a number of new products over the last year, including espresso beverages, a beef lasagna casserole and a 24-ounce cup size.

Net income attributable to Tim Hortons rose to C$88.8 million ($88.7 million), or 56 Canadian cents a share, from C$80.7 million, or 48 Canadian cents, a year earlier.

Analysts, on average, had expected earnings of 58 Canadian cents a share, according to Thomson Reuters I/B/E/S.

Total revenue rose 12 percent to C$721.3 million.

CEO SEARCH

House first served as chief executive at Tim Hortons from 2005 to 2008. When his successor Don Schroeder left abruptly, Tim Hortons said House would take over on an interim basis while it looked for a new top executive.

“I am fully committed to a successful leadership transition, and until that time, my energy is focused on building on our momentum,” said House in a statement.

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