TORONTO - Your morning cup of java at Tim Hortons (TSX:THI) won't cost you more, but your midday snack might.
"Due to an increase in operating costs, Tim Hortons restaurants has changed the pricing on select baked goods and lunch items this week," a spokeswoman for the company said Friday.
The coffee and doughnut chain says the price of a muffin is five cents higher, while sandwiches have gone up by about 10 cents. The price of coffee has not changed.
Higher commodity prices — on ingredients from wheat to canola oil — are one factor in the hikes, which will affect most locations.
The price increases come just after Maple Leaf Foods Inc. (TSX:MFI) warned this week that drought conditions will inflate food prices well into next year and maybe beyond.
The last time Tim Hortons raised its prices was in April 2011, when menu prices jumped about 4.5 per cent to cover rising costs of commodities like coffee and the wheat and sugar used in its baked goods.
Based in Oakville, Ont., Tim Hortons is Canada's biggest restaurant chain and the fourth-biggest in North America with more than 3,700 restaurants.
The company will report its second quarter earnings on Thursday. Analysts are predicting, on average, earnings of 69 cents per share on revenue of $783 million, according to Thomson Reuters.
Tim Hortons shares closed up 58 cents, or one per cent, to $53.39 Friday on the Toronto Stock Exchange.
24 Oz. Cup
Tim Hortons' <a href="http://www.huffingtonpost.ca/2012/01/16/tim-hortons-releases-larger-cup-coffee_n_1208677.html" target="_hplink">extra-large 24 oz. cup of coffee</a> might be enough for the amateur coffee drinkers, but we're holding our breath until they roll out a keg. <em>Photo credit: Tim Hortons Inc. </em>
Tim Hortons went head-to-head with Starbucks for coffee market domination when it started <a href="http://www.thestar.com/business/article/1079694--tim-hortons-to-offer-real-espresso-at-2-a-cup" target="_hplink">serving up espresso-based coffees</a>, including lattes, mocha lattes and cappuccinos for around $2 or less. <a href="http://www.torontolife.com/daily/daily-dish/caffeine-high/2011/11/16/tim-hortons-espresso-stuart-ross/" target="_hplink">How do they taste</a>? Well, they cost $2. <em>Photo credit: Tim Hortons Inc. </em>
"Would you like some lasagna with your coffee?" we <a href="http://www.huffingtonpost.ca/2011/10/17/tim-hortons-lasagna_n_1016236.html" target="_hplink">asked</a> back in October. Overwhelmingly, the answer was "No," followed by "ewwww." <em>Photo credit: Lisa Yeung</em>
Real Fruit Smoothies
The health craze is lost on some of us, and according to <a href="http://www2.macleans.ca/2011/05/02/smoothie-operator/" target="_hplink">many</a> <a href="http://www.avivaallen.com/General/tim-hortons-real-fruit-smoothies-buyer-beware.html" target="_hplink">many reviews</a>, Tim Hortons didn't quite get it right either when it introduced its Real Fruit Smoothies.
Double Double Ice Cream
"I'll take two creams and two sugars. And hurry, before it melts!" Timmies teamed up with Cold Stone Creamery to concoct the <a href="http://www.huffingtonpost.ca/2011/08/30/tim-hortons-double-double_n_941875.html" target="_hplink">Double Double ice cream flavour</a> back in August, effectively combining one addiction with another.