Boston, MA 08/07/2014 (wallstreetpr) – Tim Hortons Inc. (USA) (NYSE:THI) posted a record high sales in its second-quarter earnings. The profits came higher than the street’s expectations. The market welcomed the strong set of results as the shares posted gains of more than 7%. Tim Hortons reported profit of 92 cents as compared to 81 cents year earlier. The analysts’ expected the profit to come at 86 cents. The higher profits were helped by the price increase of the products.
Sales came higher at C$874.3 million as compared to analysts’ expectations of C$839 million. The U.S. same-store sales increased at a pace of 5.9%. It was the highest in two years. It was the double of the 2.6% gain in Canada. The chain expects the earnings per share for the fiscal year to come at the higher end of the target range C$3.17 to C$3.27.
Focus Shifts To U.S.
Out of total 4,500 restaurants of Tim Hortons Inc. (USA) (NYSE:THI), 3,600 of them are in Canada. The chain wants to focus more on the U.S. markets. The key is the innovative lunch menus. Tim Hortons has successfully attracted the breakfast crowd, and now wants the same success with lunch menus. The breakfast combos have become the hot favorite of the consumers.
Tim Hortons Inc. (USA) (NYSE:THI) will add 25 new restaurants in New York and New Jersey in the course of ten years. The higher growth can lead the chain to pick up more locations in the U.S. It will look out for responsible partners for the new development agreements.
The Plans
Tim Hortons Inc. (USA) (NYSE:THI) has laid out a five-year strategic plan for the food chain. It intends to expand the restaurants locations and enhance the customer base. Tim Hortons will launch plans that will make consumers spend more at every visit. As of now, its average bill is almost 23% to 45% lower than its peers.
