Tim Hortons 1st-quarter net income rises

AP News
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Posted: May 12, 2011 11:14 AM
Tim Hortons 1st-quarter net income rises

Canadian coffee-and-doughnuts chain Tim Hortons Inc. said Friday that first-quarter net income rose 2 percent on improving results in its U.S. and Canadian stores.

Net income rose to $80.7 million Canadian dollars ($83.7 million), or 48 Canadian cents (50 cents) per share, from $78.9 million Canadian dollars, or 45 Canadian cents per share last year. Analysts polled by Thomson Reuters expected earnings of 50 cents per share U.S.

Revenue rose 10 percent to $643.5 million Canadian ($667.7 million). Analysts expected revenue of $672.7 million.

Revenue in stores open at least one year rose 4.9 percent in the U.S. and 2 percent in Canada. The measure is considered a key metric of a retailer's financial health because it excludes stores that open or close during the year.

CEO Don Schroeder said results were strong considering the company gave away food and drink prizes as part of a 25th anniversary celebration in Canada. Snowstorms also hurt results in key U.S. markets.