Timmies grows Canadian sales amid bid to fix relationship with owners
The parent firm of Tim Hortons saw sales growth at Canadian locations of the coffee-and-doughnut chain as executives say their work to mend fraught franchisee relations is paying off, though more work remains.
Restaurant Brands International Inc. is pleased with the Canadian results, said CEO Daniel Schwartz. Sales at Tim Hortons restaurants in Canada open for 13 months or more, a key retail metric, increased 0.9 per cent in the quarter ending September 30, according to the company ’s third-quarter earnings report. That’s up from 0.6 per cent in the same quarter the previous year and outpaces the system-wide growth of 0.6 per cent, which includes restaurants outside of Canada, for the current quarter.
Executive changes, including hiring Duncan Fulton as chief corporate officer in July, and initiatives from the company ’s “Winning Together” brand plan helped, said Schwartz.
He highlighted the launch of all-day breakfast nationwide in late July as adding incremental sales and profitability. The plan includes renovating restaurants — a $700-million investment that adds open-concept seating. It will add a kids’ menu this quarter, he said.
It also plans to launch a loyalty program nationwide in the first half of 2019, said Tim Hortons president Alex Macedo. Self-service kiosks will start to roll out more broadly early next year, he said.
It has grappled with an unsanctioned group of franchisees who formed the Great White North Franchisee Association in a bid to remedy alleged mismanagement of the brand.
Sales at RBI’s other two chains, Burger King and Popeyes Louisiana Kitchen, grew, lifting its third-quarter profit.
The Oakville, Ont.,-based company’s profit attributable to shareholders totalled US$133.6 million or 53 cents per diluted share, up from $91.4 million or 37 cents per diluted share a year ago.