OAKVILLE, ONT. — Net income attributable to Tim Hortons increased 2.3% to C$80.7 million ($83.6 million), equal to C$0.48 per share on the common stock, in the first quarter ended April 3, which compared with C$78.9 million, or C$0.45 per share, in the previous year’s first quarter. Total revenues in the first quarter increased 10% to C$643.5 million ($666.9 million) from C$582.6 million.
Net income benefitted from a lower effective tax rate compared to the same period last year, but higher net interest expense partly offset the gain. Total revenues increased because of the sale of new products managed through the supply chain compared with the previous year’s first quarter.
First-quarter same-store sales increased 2% in Canada, where the company opened 31 restaurants in the quarter, and 4.9% in the United States, where the company opened 11 restaurants in the quarter.
“Our Canadian same-store sales growth was notable given the sales impact of significantly increased redemptions of higher food and beverage prizes as part of our investment in the 25th anniversary of the Roll Up the Rim to Win promotion and the effect of heavy snowfalls in key markets,” said Don Schroeder, president and chief executive officer of Oakville-based Tim Hortons, when results were given May 12. “Our U.S. business continued its progression with strong same-store sales performance and increased earnings contributions, as we executed our growth strategies.”
First-quarter operating income declined, as anticipated, to C$120.6 million from C$127.7 million. The loss of contribution from Maidstone Bakeries was about C$13 million. Prior to the disposition of its joint venture interest, Tim Hortons was required to consolidate 100% of Maidstone Bakeries’ financial results in operating income.
Tim Hortons said it is on track to achieve its 2011 target of an earnings-per-share range within C$2.30 to C$2.40.