OAKVILLE, ONT. — Tim Hortons Inc. posted net income of C$77.8 million ($72.7 million), equal to C$0.43 per share on the common stock, in the second quarter ended June 28, up 4% from C$75 million, or C$0.41 per share, in the previous year’s second quarter. Net sales rose 9% to C$556.1 million ($519.4 million). Same-store sales grew 1.7% in Canada and 3.3% in the United States.
"We overcame anticipated challenges in the second quarter and delivered positive sales and earnings growth, demonstrating the strength and resilience of our business," said Don Schroeder, president and chief executive officer. "We were particularly pleased with growth in transactions in our Canadian business and the operational and earnings improvement in our U.S. business."
Tim Hortons said its U.S. segment had a second consecutive quarter of robust sales performance driven by a strong menu promotional program and significant benefit from Cold Stone Creamery co-branded locations. By the end of the second quarter, 39 co-branded Tim Hortons/Cold Stone Creamery locations had been opened, including one co-branded Cold Stone Creamery site.
The U.S. segment had operating income of $3.1 million in the second quarter, a $3.3 million improvement over the prior year when there was a loss. Tim Hortons attributed the gain to several factors, including system-wide and same-store sales growth, a benefit of $1.2 million from 2008 restaurant closings and related asset impairment charge, lower general and administrative expenses, and contributions from vertical integration in the segment.
Ten restaurants were opened in the United States during the quarter.