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Tim Hortons profits soar
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The Canadian Press-
Shares in Oakville, Ont.-based Tim Hortons rise after the coffee and doughnut chain operator reported profits soared 40 per cent in the third quarter on generated higher sales.
The company earned $103.6 million, or 65 cents a share, up from $73.8 million, or 42 cents, in the same 2010 period.
That was better than analysts had predicted. The average estimate had been for 64 cents, according to estimates compiled by Thomson Reuters.
Its stock rose 42 cents to $49.96 in late morning trading on the Toronto Stock Exchange.
Revenues totalled $726.9 million, up from $670.5 million and in line with expectations.
Same-store sales, a key metric measuring results from stores open at least a year, were up 4.7 per cent in Canada and 6.3 per cent in the United States.
"Operating conditions in North America continued to be challenging and the strength of our sales performance is a great testament to our strong price-value brand position with our guests," said CEO Paul House.
"We continued to innovate in the third quarter and execute our strategic growth plans to build our business."
In September, the company announced a licence agreement with Dubai-based Apparel Group to open up to 120 restaurants in the United Arab Emirates, Qatar, Bahrain, Kuwait and Oman over the next five years.
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