Tim Hortons is experiencing growths of 8% in profits for the last quarter of the year, as sales have improved in the United States. The company has experienced same-store sales increases of 3% in the US and 1.7% in Canada, while opening 13 restaurants in the US and 34 in Canada in this last quarter.
Tim Hortons has also introduced a new coffee option “Dark Roast”, aiming to increase consumption by possibly aiming at a new market segment.
The company’s net income rose to $113.9 million at the end of the third quarter from $105.7 million a year earlier and total revenue rose 3 percent to $825.4 million. Suggesting market research has been successful.
On the other hand Tim’s is experiencing fierce competition from McDonald’s Corp and Starbucks Corp as it remains under pressure from shareholders to boost returns as they might invest in other companies. Still Tim Horton’s shares listed on the Toronto stock exchange state that these have risen by 22% this year.
Source:
http://www.bnn.ca/News/2013/11/7/Tim-Hortons-posts-higher-profit.aspx