Canada-based coffee and doughnut chain Tim Horton's Inc. said Wednesday its first quarter profit grew 4 percent, helped by strong sales in Canada.
For the quarter ended March 30, net income rose to 61.8 million Canadian dollars ($61.4 million), or 33 Canadian cents per share (32 cents), from 59.3 million Canadian dollars, or 31 Canadian cents per share, in the prior-year quarter.
Analysts polled by Thomson Financial expected profit of 35 cents per share.
Revenue rose 8 percent to 460.3 million Canadian dollars ($457.2 million) from 424.6 million Canadian dollars.
Revenue grew 10 percent in the company's Canadian division, but slid 7 percent in the U.S.
The company said same-store sales, or sales at stores open at least a year, rose 3.5 percent in Canada and 1 percent in the U.S. Same-store sales is an important performance indicator because it measures sales at existing locations rather than newly opened ones.
Tim Horton's said strong promotional and menu programs in the quarter helped offset the impact of snowfalls in key markets, a new holiday in parts of Canada and an earlier Easter.
U.S.-traded shares of Tim Horton's rose 17 cents to close at $34.35.
Terms & Conditions
RSS Headlines
Fool UK