The owner of Tim Hortons says it plans on making the Canadian coffee shop as ubiquitous around the world as the American fast-food chain Burger King.
"There is really no limit on how far the Tim's brand can travel," said Daniel Schwartz, CEO of Restaurant Brands International, the multinational parent company of both restaurant chains.
(Photo: Roberto Machado Noa/LightRocket via Getty Images)
Schwartz told analysts in a call Thursday that the company sees both brands have an opportunity to grow on a global basis.
During the second quarter, the number of Tim Hortons locations increased about three per cent to 4,464 stores, while Burger King restaurants jumped about four per cent to 15,100 locations during the second quarter.
Last month, the company announced that it was opening a Tim Hortons in the Philippines, its first foray into southeast Asia. No launch date has been set.
Restaurant Brands International CEO Daniel Schwartz says the company wants to see Tim Hortons be as big as Burger King.
Restaurant Brands reported a big jump in its quarterly profit despite flat revenue compared with the same time last year, which it attributed to the negative impact of currency fluctuations.
It earned net income for common shareholders of US$90.9 million or 38 cents per share in the three months ended June 30. That's up from US$11.0 million or five cents per RBI share in the second quarter of 2015.
Last year's profit was reduced by one-time costs associated with RBI's acquisition of the Tim Hortons restaurant chain. Excluding those and other items, RBI's adjusted net income was $192.4 million or 41 cents per share, up from $141.0 million or 30 cents per share a year earlier.
Comparable restaurant sales grew 2.7 per cent at Tim Hortons in the quarter, and Burger King sales were up by 0.6 per cent.
Revenue was little changed at US$1.04 billion, including $759.8 million from Tim Hortons and $280.4 million from Burger King.
Beer and wine on display as part of Starbucks' evening menu. Tim Hortons owner RBI says it isn't planning on following the same strategy as rival Starbucks. (Photo: Starbucks)
Schwartz said the company is staying focused on their expansion strategy despite seeing softness in the quick-service restaurant industry in the quarter.
He declined to provide a reason for the softness, but other industry executives have cited weakening consumer confidence amid political and global uncertainty. Analysts have also noted that the increasing competition over promotional deals, as well as the growth of smaller, independent players.
In an interview prior to the call, chief financial officer Joshua Kobza said RBI plans on continuing to expand its lunch offerings at Tim Hortons, which recently launched new menu items such as potato wedges and salads.
He said the company also wants to improve its late afternoon and evening menus, but is not looking at duplicating the business model of its competitor Starbucks, which recently began offering customers alcohol and tapas.
— With files from The Associated Press
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