Tim Hortons posts higher than expected profit

21 per cent jump in Q2 profits

For the second-quarter period ending July 4, Tim Hortons posted a 21 per cent rise in profit on same-store sales growth in Canada. Compared with the $77.8 million (43 cents a share) second quarter in 2009, Tims earned $94.1 million (54 cents a share) in 2010. Though the figures were more than analysts had estimated, same-store sales in Canada and the U.S. did not increase substantially compared to last year (only a 1.7 and 3.3 per cent increase respectively from last year). The company also announced that it was going to sell its 50 per cent interest in Maidstone Bakeries to Swiss partner Aryzta AG for $475 million. Maidstone will continue to provide baked goods for Tim Hortons restaurants until at least 2016, at which point the Canuck retailer can look for alternatives.

Financial Post

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