Sunday, November 20, 2011
Tim Hortons Profits Soar to $103.6 Million in Quarter. McDonald's Pressure not Hurting Bottom Line. New Tim Hortons Lattes Will Ensure Margin Improvement.
Also this year Tim Hortons announced that it is set to open 120 restaurants in the United Arab Emirates, Qatar, Bahrain, Kuwait and Oman over the next five years. A clear indication that the company is primed for international expansion beyond the United States of America.
Much of the growth over the last quarter was from the sale of its bakery unit, which sold for a whopping $475 million. But other positive signs were its same store sales growth, and the increased prospect of a substantial share buyback with the new cash infusion into the company.
Though there is increased competitive pressure from McDonald's and its aggressive expansion into the coffee business in Canada, Tim Hortons is weathering the battle very well, and even perhaps benefiting from an increased overall market for higher priced lattes now in the lineup.