You are here
OAKVILLE, Ontario -- Tim Hortons Inc., Canada’s largest coffee-and-doughnut chain, reported fourth-quarter profit that beat analysts’ estimates, with sales rising 9.4 percent to $447.3 million, according to a report by Bloomberg News.
Chief Executive Officer Don Schroeder has closed stores and sought partners in the U.S. since restaurants posted a third-quarter loss.
"They never really made money in the U.S. business, so to not lose money despite traffic going down in the quarter is quite a feat," said David Hartley, an analyst with BMO Capital Markets in Toronto, in the Bloomberg News report.
Additionally, Schroeder added combination meals, including soup-and- sandwich offers, drew customers in during the current recession, and the chain is also opening kiosks in Tops Friendly Markets grocery stores while creating joint locations with Cold Stone Creamery in the U.S., where Tim Hortons competes with McDonald’s Corp., Starbucks Corp. and Dunkin’ Donuts Inc., according to the report.
"We are focusing our efforts on more established U.S. markets," Schroeder said in the report. "We have created a menu and marketing program responsive to the economic realities of our customers."