Tim Hortons Inc. reported a slight dip in profits to $59.3 million for the first-quarter, down from $63.6 million a year ago.
Total revenues were $424.6 million for the three months ended April 1, up 13.9 per cent from $372.8 million in the first quarter of 2006. Same-store sales increased 6.3 per cent in Canada – above the company’s long-term expectations – and four per cent in the U.S.
The profits amounted to 31 cents per share and compared with 39 cents per share last year, due in part to a higher tax rate and a 17.8 per cent higher share count was as a result of the company’s initial public offering in March 2006.
Analysts surveyed by Thomson Financial had forecast earnings of 32 cents per share.
“Tim Hortons continued to deliver strong revenue growth and operating income growth in the first quarter,” stated CEO Paul House.
U.S. growth, he added, was below the company’s long term target, and resulted from a milder winter and heavier competition, as well as the number of new stores opened late in 2006.
“We remain optimistic we can achieve our previously announced targets for 2007,” House said.
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