Tim Hortons boosts coffee price in some regions; revenue up
VANCOUVER — Rockwell Diamonds Inc. (TSX:RDI) plans to double its production in the next six to nine months, largely through acquisitions, as the diamond market recovers following a near collapse earlier this year.
The Vancouver-based diamond producer, with operations in South Africa, is back on track after nearly a year of distractions, including an unsuccessful hostile takeover and the recession, which caused diamond prices to fall by more than 50 per cent.
“ We see some very good opportunities to cherry pick and acquire,” Rockwell president and chief executive John Bristow said in an interview Friday before the company’s annual shareholder meeting. “ We see ourselves growing into a stronger company, bigger company, through a combination of organic growth and fairly select acquisitions.”
The company currently has a target of 2,500 carats per month. TORONTO — Tim Hortons Inc. (TSX:THI) is boosting the price of a cup of coffee in Quebec, Manitoba and the Maritimes early next month as it contends with higher costs for running its franchised stores.
Executives for iconic coffee, doughnut and sandwich chain told analysts in a conference call that the price increase would be rolled out during in the first two weeks of November, and that it would range from five to seven cents for a cup on coffee.
The decision comes as it grapples with higher operational costs that range from the price of coffee beans to a minimum wage increase in some parts of the country.
In September, the company increased the price of some of its products at Ontario stores, mostly by five cents each.
“ This year our store owners probably faced more of a combination of pressures, not only on the raw material side of things, but also from a labour perspective,” said chief financial officer Cynthia Devine.
“ They held the line on pricing for a very long time,” Devine said in an interview.
On Friday, Tim Hortons served investors with another quarter of revenue growth, even as profits shrank compared with the same time last year, as it ate $23.1 million in costs associated with converting back into a Canadian corporation.
Revenue increased to $563.6 million in the third quarter ended Sept. 27, up 10.7 per cent from just under $509 million in the comparable quarter of 2008.
The biggest increase was at Tim’s Canadian stores, which brought in $492 million, up $50 million from the third quarter of 2008.
But U.S. stores also increased total sales, which grew by $7.8 million or nearly 25 per cent to $38.9 million.
Same-store sales, which measure performance of locations open for at least a year, increased 3.1 per cent in Canada and 4.3 per cent in the United States.
Despite the sales growth, net income fell to $61.2 million or 34 cents per share in the quarter, down 22.3 per cent from a year ago.
“Performance was delivered in a tough operating environment that continued to be framed by persistently high unemployment levels as well as other pressures in the North American economy,” president and CEO Don Schroeder said in a conference call with analysts.