A pedestrian passed Tim Hortons restaurant.
Ben Nelms | Bloomberg | Getty Images
Canada’s worst Govt-19 lawsuits are putting pressure on the country’s iconic coffee chain, Tim Hortons, and this could obscure some of the progress that has been made.
Parent company Restaurant Brands International Popular role among Wall Street analysts. For example, Barclays Capital chose it as one of the best choices for medium or long-term investors. Burger King and Bobby are recovering quickly in the United States, and Tim Hortons’ successful turnaround will correct the department’s backwardness.
So far this year, restaurant brand shares have risen 12%, giving the company a market value of $ 31.8 billion. The stock rose 1% in morning trade after topping its first-quarter earnings and earnings estimates.
Tim Hortons This is the only chain in the portfolio of restaurant brands that report declining single store sales, Compared to double-digit declines from the previous year. Worldwide, its single-store sales were down 2.3% and Canadian one-store sales were down 3.3%. Tim Hortons’ declining computer-level sales dragged down the organic revenue of restaurant brands, which was negative compared to a year earlier. Typically, Tim Hortons contributes 60% of the total revenue of restaurant brands.
Restaurant Brands CEO Jose Sil says there is no doubt that the biggest factor affecting the performance of the coffee chain is restrictions on movement in Canada.
“Americans are enjoying a much different path from the temple than Canadians,” Chill said.
Both Burger King and Bobbies have recorded similar sales growth in the United States.
This month, Canada’s rate of new Govt-19 infections has overtaken the United States for the first time Infection Started. Ontario, which accounts for nearly 40% of the country’s population and more than half of Tim Hortons’ location, is under a stay-at-home order until May 20. On Friday, investigators told Cill that there was a “real possibility” that the order had been extended.
According to data from the Centers for Disease Control and Prevention, Canada’s vaccine release is slower than the United States, with 30% of the population fully vaccinated. Ontario has opened up first-dose availability to people under the age of 40, and plans to expedite eligibility for all adults by the end of May.
But there are some bright spots for Tim Hortons. In areas where Canadians may have more casual practices, consumer cafes are returning. Sales of suburban restaurants are up slightly compared to a year earlier, executives said. It has about 1,000 more drive-through locations than its competitors in Canada, giving it a leg up to attract consumers looking for convenient ways to get their coffee.
The The chain was in breakthrough mode before the epidemic, And its continued investments in the business begin to pay off. With its new Dark Roast coffee, improved coffee brewing equipment and water filtration, there has been an increase in the percentage of transactions involving coffee in three years. Its new crack egg breakfast sandwiches helped boost single-store sales growth for the breakfast category in February.
In March, Tim Hortons announced an investment of C $ 80 million ($ 65 million) to spend on advertising, new menu items and its loyalty program. Owners offer an additional 0.5% of sales as advertising contributions.