BUSINESS

Tim Hortons Owner Posts US$514.2 Million Loss Even As Sales Rise

02/17/2015 07:26 EST | Updated 02/18/2015 07:59 EST

OAKVILLE, Ont. -- Restaurant Brands International Inc. (TSX:QSR) posted a fourth quarter loss as the company behind Burger King completed its acquisition of Tim Hortons.

The company, which keeps its books in U.S. dollars, says it lost US$514.2 million or $2.52 per diluted share in its latest quarter, compared with a profit of $66.8 million or 19 cents per diluted share a year earlier.

Revenue totalled $416.3 million, up from $265.2 million.

The loss for the quarter included a $143-million loss related to derivatives and $94.3 million attributed to the Tim Hortons deal and restructuring costs.

Comparable store sales were up 4.1 per cent for Tim Hortons, while Burger King comparable sales were up 3.0 per cent on a constant currency basis.

Tim Hortons said last month it cut about 350 employees, mainly at its headquarters and regional offices.

In total, roughly 15 per cent of the 2,300 employees were included in the reduction, centred on its headquarters as well as regional offices and distribution centres across the country.

Tim Hortons merged with Burger King under Restaurant Brands International (TSX:QSR) late last year and the new owner was widely expected to cut staff.

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