Tim Hortons Coffee

[Lukester]

Tim Hortons plans U.S. push as profit climbs


Wed Feb 20, 2:55 PM


By Susan Taylor


OTTAWA (Reuters) - Fourth-quarter profit at Tim Hortons rose 11.5 percent, the coffee and doughnut chain said on Wednesday, as new locations and higher prices more than offset rising costs.

Well known as Tims in Canada, the quick-service restaurant also said it plans a bigger push into the U.S. market in 2008, shrugging off market jitters about weaker consumer spending.

"I see this a great opportunity for the Tim Hortons chain to grow," Chief Executive Paul House said on a conference call.

"Real estate costs are coming off, hopefully building costs will follow, and there's lots of people around that have been, especially in the U.S., displaced out of jobs, that are looking for franchises."

The company, which named insider Don Schroeder on Tuesday as House's successor, effective March 1, also sweetened its quarterly dividend by nearly 29 percent to 9 Canadian cents.

Net earnings for the period ended December 30 grew to C$75.7 million ($74.7 million), or 40 Canadian cents a share, from C$67.9 million, or 35 Canadian cents a share, in the same period a year earlier.

That matches the mean analyst estimate for a profit of 40 Canadian cents a share, according to Reuters Estimates.

Operating income climbed 9.3 percent to C$116.2 million.

Revenue rose 10.5 percent to C$515.4 million as it promoted such products as chicken fajita wraps, cream of broccoli soup and pumpkin spice smoothies.

Quarterly same-store sales grew 3.4 percent in Canada and 4.2 percent in the United States.

About 2 percent of Canadian growth was due to higher prices, compared with less than a half a percent in the United States.

Gains were crimped by heavy snow in key markets and a bigger promotion of its TimCard, a reloadable electronic payment system, rather than Christmas merchandise.

A new breakfast sandwich gave a big lift to year-ago growth of 9.3 percent in Canada and 8.3 percent in the United States

The cost of sales rose 13.6 percent, partly a reflection of higher distribution costs.

"FEEL VERY GOOD ABOUT THE U.S."

The company expects 10 percent operating income growth in 2008, repeating its 2007 target. It forecast same-store sales growth of 4 percent to 6 percent in Canada and 2 percent to 4 percent in the United States.

"We continue to feel very good about the U.S. business," said Chief Financial Officer Cynthia Devine. "But recognizing that there are some challenges that everyone's facing in the U.S. right now, we felt that it was appropriate to reflect those in the targets."

It plans to open 120 to 140 new locations in Canada and between 90 and 110 in the United States, including some self-serve kiosks. That is a big jump from the 2007 U.S. target of 40 to 60 locations, while the Canadian target is the same.

The company has a goal of 3,500 to 4,000 restaurants in Canada and 500 in the United States by the end of 2008. It now has 2,823 locations in Canada and 398 in the United States.

Named after Tim Horton, the National Hockey League player who co-founded the restaurant chain in 1964 in Hamilton, Ontario, the firm opened 71 new outlets in Canada and 48 in the United States in the quarter.

The shares were up 33 Canadian cents at C$35.74 on the Toronto Stock Exchange and 4 cents higher at $35.18 in New York.

($1=$1.01 Canadian)

(Additional reporting by Jonathan Spicer in Toronto; Editing by Rob Wilson)

[Lukester]

From the Wikipedia:

Tim Hortons Inc. is a coffee-and-doughnut fast food restaurant chain. Founded in Hamilton, Ontario, in 1964,[2] the store rapidly expanded across Canada to become the country's largest quick-service food chain.[3]

Tim Hortons franchise stores are plentiful in Canadian cities and towns. As of July 1, 2007, there were 2,733 outlets in Canada, 345 outlets in the United States and one outlet just outside Kandahar, Afghanistan.[4][5][6] Tim Hortons has supplanted McDonald's as Canada's largest food service operator; it has nearly twice as many Canadian outlets as McDonald's, and its system-wide sales surpassed those of McDonald's Canadian operations in 2002.[7] The chain accounted for 22.6% of all fast food industry revenues in Canada in 2005.[3] Tim Hortons commands 76% of the Canadian market for baked goods (based on the number of customers served) and holds 62% of the Canadian coffee market (compared to Starbucks, in the number two position, at 7%).[8]

[Lukester]

Yes, it's the Tim Horton: ex NHL player. I think he started out with Eddie Shack but not quite sure. Anyhow, it's a tasty coffee. Much weaker but better than Starbucks. Most Canadians start their day with this coffee. I think it will find success in America--question is: which region?

[Lukester]

Tim Hortons hikes dividend 28 per cent after Q4 profit jumps 11.5 per cent
Wed Feb 20, 11:51 AM
The Canadian Press

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By The Canadian Press

OAKVILLE, Ont. - Coffee-shop chain Tim Hortons Inc. (TSX: THI.TO) is boosting its quarterly dividend 28.6 per cent after fourth-quarter profit jumped 11.5 per cent to $75.7 million, from a year-ago $67.9 million.

"We met or exceeded our 2007 targets for operating income and unit growth, and we feel positive about our same-store sales performance over the past year, given the significant comparable period growth that we lapped," Paul House, chairman and CEO, said Wednesday in a release.

"In 2008, we will continue to focus on the things that have made us successful, including menu innovation, operational excellence and speed of service," House added.

On Tuesday, the company announced that Don Schroeder will become president and chief executive, while House will be executive chairman, effective March 1.

The board of directors has approved an increase in the quarterly dividend to nine cents a share, payable March 17 to stockholders of record as of March 3.

Net income for the quarter ended Dec. 30 amounted to 40 cents a diluted share, compared with 35 cents per share a year earlier, the Oakville-based company said.

Operating income was up 9.3 per cent in the fourth quarter and 12.1 per cent for the full year.

Fourth quarter same-store sales increased 3.4 per cent in Canada and 4.2 per cent in the U.S. as total revenues were $515.4 million, up 10.5 per cent from a year earlier.

For the full year, profit increased 3.8 per cent to $269.6 million or $1.43 a diluted share, compared with $259.6 million or $1.40 per share in 2006. Revenues were up 14.2 per cent to about $1.9 billion.

During the quarter, 119 new restaurants were opened, compared with 111 in the fourth quarter of last year. A total of 198 restaurants were opened in 2007.

Tim Hortons was formed in 1964 before it was acquired by Wendy's International in 1995 and operated as a wholly owned subsidiary for several years. It was spun off in September 2006 as an independent public company.

The coffee and doughnut icon is already the No. 2 lunchtime quick-service business in the country, but it's aiming to boost daytime traffic by unveiling a broader lunchtime menu that could include a "signature" hot sandwich.

[domafia]

now is not the time. established companies like starbucks and caribou are getting hammered in the u.s. stock market right now due to economy and competetition from mcd's and others. tim horton's would not have a chance in hell of being successful here right now.

but the coffee is pretty decent.

[Lukester]

Originally Posted by domafia

now is not the time. established companies like starbucks and caribou are getting hammered in the u.s. stock market right now due to economy and competetition from mcd's and others. tim horton's would not have a chance in hell of being successful here right now.

but the coffee is pretty decent.

I am aware that Starbucks has its claws ingrained in this market. It is never a bad time to start a biz imo--especially if the market forces allows u to take a chunk of the pie. A tastier coffee at about half the price sounds good to me.

Add to that cheap donuts...but also not-so-bad pastry--maybe not as fine as Starbucks or Second Cup but edible nonetheless.

Tim has decent fresh sandwiches, chili and soup also.

It's a place to gather and talk about nothing--lol. But Starbucks has a better environment just like Second Cup for a date, interview, or meeting--and that's a Big Plus for them.

Do Americans need a better/tastier coffee fix? I'm sure we can all do without the doughnuts weight-wise but they are a quick-fill in a fast-paced world.

Another question--will it catch on fast enough to survive for a few Quarters?...or just fold.

[Wreck_IT]

lmfao -"It is never a bad time to start a biz imo"

yeah heeeellllllllllllloooooooooooooo!!!!!!!!!!!!!!!!!! !!!!!!!!!!

[Lukester]

Originally Posted by Wreck_IT

lmfao -"It is never a bad time to start a biz imo"

yeah heeeellllllllllllloooooooooooooo!!!!!!!!!!!!!!!!!! !!!!!!!!!!

It's only a darn dollar on the consumer's part.

Your mind is closed. No creativity whatsoever with that kind of comment.

I now have my biz split in three parts (actual labour/design/consulting). I keep growing and growing. I have a recurring clientele that some envy and froth at.