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Tim Hortons profits up 34%
Apr. 27, 2006. 11:02 AM
CANADIAN PRESS
Tim Hortons Inc. reported a 34 per cent increase in first-quarter profits Thursday, as the iconic Canadian doughnut chain basks in the afterglow of its high-flying initial public offering.
The company earned $63.6 million in the quarter, up from $47.5 million a year ago.
That amounts to 39 cents per share, up from 30 cents per share in the first quarter of 2005.
Same-store sales, a key measure in the restaurant industry, increased 8.7 per cent in Canada and 9.8 per cent in the United States, where Tim Hortons is struggling to increase awareness of its brand.
Revenues were $372.8 million, up 15.2 per cent from $323.6 million.
The company opened 27 restaurants during the first quarter — 20 in Canada and seven in the United States.
Its bottom line was boosted during the period from a deferred tax reversal of previously accrued Canadian withholding taxes, which decreased expenses by about $5.8 million, and permanent book and tax differences relating to certain hedge transactions, which decreased expenses by about $4.3 million. Similar benefits will not be incurred in future quarters, the firm said.
"We are proud of the strong quarter that we have delivered in our first reporting period as a public company," CEO Paul House stated.
"Our robust sales performance reflects our continued focus on new product development and store-level operations, as well as a strong marketing and promotional calendar. Unseasonably mild weather also aided our sales performance."
On the Toronto Stock Exchange Thursday, Tim's shares gained 75 cents, or 2.45 per cent, to $31.31.
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I got hooked on French vanilla LOL
I get hooked on Iced Caps in the summer,.
