08/11/2011 10:42 EDT | Updated 10/11/2011 05:12 EDT

Tim Hortons Profit Up Slightly On 10% Revenue Jump


OAKVILLE, Ont. - Coffee store chain Tim Hortons reported Thursday a second-quarter profit of $95.5 million, up slightly from a year-earlier $94.1 million as revenues jumped nearly 10 per cent.

That amounted to net earnings of 58 cents per share, compared with 54 cents per share in the same period a year earlier.

Factoring out a three cent per share charge related to the departure of former CEO Don Schroeder, the company earned 61 per cent share, in line with analyst estimates.

Canadian same-store sales were up 3.8 per cent, while U.S. same-store sales rose 6.6 per cent.

"Our business performed well in the second quarter with strong top-line results in both Canada and the U.S.," president and CEO Paul House said in a statement.

"We overcame softness early in the quarter in Canada and delivered strong same-store sales growth in both Canada and the U.S."

Based in Oakville, Ont., Tim Hortons (TSX:THI) is Canada's biggest restaurant chain and the fourth-biggest in North America with more than 3,700 restaurants on the continent.

The company has recently been changing its approach in some markets, including a master license agreement with Dubai-based Apparel Group to open up to 120 restaurants in the United Arab Emirates, Qatar, Bahrain, Kuwait and Oman over the next five years.

Late last year, Tim Hortons said it would close 54 locations in New England, a money-losing market for the company, where it faces strong competition from locally-headquartered Dunkin Donuts.

Since opening its first U.S. store in Buffalo, N.Y., in 1985, Tim Hortons has expanded to over 600 stores in a dozen states —including Michigan, Ohio, Kentucky and West Virginia — and plans to open another 300 locations over the next three years.