Tim Hortons’ sales have soared amid the diner’s expansion and price hikes

Tim Hortons’ sales have soared amid the diner’s expansion and price hikes

Ottawa, Canada - December 16, 2021: Tim Hortons coffee shop sign in downtown Ottawa, Canada.  Tim Hortons is a popular Canadian fast food restaurant.

Tim Hortons’ sales rose in its most recent quarter. (Getty Images)

Tim Hortons’ sales rose in its most recent quarter, surpassing pre-pandemic levels as the coffee and donut chain continues to expand its product offerings in the dinner category.

Restaurant Brands International (QSR)(QSR.TO) — the parent company of Tim Hortons, Burger King, Popeyes and Firehouse Subs — says the chain’s systemwide sales were $1.95 billion in the three months ended Sept. 30, up from $1.78 billion reported last year. in 2019 Comparable sales, a key metric in the retail industry that excludes newly opened locations, were up 11 percent from last year and up 5 percent from 2019.

“These results were driven by the strength of our core offerings and strong calendar initiatives to expand Tim Hortons into high-growth dayparts and products supported by strategic price increases,” RBI CEO Jose Cil said in a conference call with analysts on Thursday.

“We are pleased to see that our core food offerings (breakfast and baked goods) helped drive comparable year-over-year sales growth during the quarter, with further benefits from our cold beverages and PM food initiatives.”

Tim Hortons is in the second phase of a turnaround plan focused on expanding into the high-growth lunch and dinner category, known in the fast-food industry as “PM daypart.” The category is the fastest growing category in the Canadian fast food industry, representing an $8.5 billion market that is growing at an annual rate of 5 percent, according to Tim Hortons.

Tim Hortons has been expanding its menu offerings for the lunch and dinner crowd in recent months, introducing a new range of bowls and containers that Cil says have helped drive sales growth. The company’s lunches and dinners accounted for 10 percent of all products sold in the third quarter.

“We’re seeing Canadians respond very well to the food and beverage innovation we’ve brought out of Tim Hortons,” said RBI CEO Duncan Fulton. Yahoo Finance Canada.

“With 10 percent of all tickets now including PM food, that’s exciting because there’s still a huge growth trajectory for us to become a destination for lunch and dinner, as well as breakfast… There’s a lot. room for growth.”

As part of the lunch and dinner push, Fulton says the company will roll out new savory pastries in two flavors: jalapeño and herb and garlic. Even Tim Hortons recently They tested flatbread pizzas at 20 locations in the Greater Toronto Area and will spread the test to different places.

“We need to do more testing before we can commit nationwide, but the reaction from our guests has been very positive,” Fulton said.

RBI, which reports its earnings in US dollars, said system-wide sales grew 14 percent in the third quarter, and total revenue reached $1.73 billion, up from $1.50 billion in the same quarter last year. The company reported third-quarter earnings of $530 million, or $1.17 per diluted share, up from $329 million, or 70 cents per diluted share, last year.

Analysts on average had expected earnings of 80 cents per share and revenue of $1.66 billion, according to estimates by financial markets data firm Refinitiv.

Shares of RBI were up about 2 percent as of 12:30 a.m. ET, trading at $81.04 on the Toronto Stock Exchange.

With files from The Canadian Press

Alicja Siekierska is a senior reporter for Yahoo Finance Canada. Follow him on Twitter @alicjawithaj.

Download the Yahoo Finance app, available Apple and android.

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