Canada's number-one quick-service restaurant, Tim Hortons Inc., said Friday Q2 net income dropped 12% to $63.6 million (C$67.2 million), or $0.36/share, from C$76.3 million ($0.39/share) a year ago -- in line with analyst estimates. Revenue rose 14% to C$465.3 million. Canadian same-store sales performance exceeded expectations, while U.S. same-store growth missed targets. "Although U.S. same-store sales fell below our long-term targeted growth, we are executing on our plan of developing selected markets and growing our brand in the U.S.," CEO Paul House said. Price increases contributed 1% to same-store sales growth. The company expects to meet or exceed its 2007 operating income growth target of 10%. The company opened 18 new stores in the quarter. Last year, it introduced a breakfast sandwich in an attempt to lure customers from McDonald's Egg McMuffin. Since its IPO in March 2006, shares have increased 24%.
Sources: Press release, Bloomberg, MarketWatch
Commentary: Tim Hortons Reports Earnings Friday: Preview • Can Tim Hortons Keep Rolling? [Motley Fool] • The Tim Hortons Spinoff Created Value for Wendy's Shareholders
Stocks/ETFs to watch: THI. Competitors: MCD, SBUX
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