The Ontario-based coffee chain surpassed 5,700 stores during the period following robust outlet growth internationally, but posted a seventh consecutive quarter of store closures in Canada
A Tim Hortons drive-thru outlet in the UK. RBI opened 39 net new Tim Hortons stores during the quarter to reach 5,701 outlets globally | Photo credit: Tim Hortons
Tim Hortons remains a key performer for parent company Restaurant Brands International (RBI), following strong third quarter sales and outlet growth in its 15 international markets.
RBI, which also operates the Burger King, Popeyes and Firehouse Subs fast-food restaurant chains, said Tim Hortons achieved 10% year-on-year sales growth to reach $2.09bn during the three months ended 30 September 2023.
System-wide-sales for the coffee chain in Canada, where 68% of its stores are located, increased 8.5% year-on-year to $1.7bn, while sales across international Tim Hortons stores grew 16% to $351m.
Tim Hortons’ Adjusted EBITDA for the period was $311m, representing 44% of RBI’s total $698m earnings.
RBI opened 39 net new Tim Hortons stores during the quarter to reach 5,701 outlets globally – 5% higher than the same period last year.
However, the restaurant group oversaw a seventh consecutive quarter of negative domestic outlet growth for Tim Hortons, which has not increased its store count in Canada since the third quarter of 2021.
The coffee chain closed net four sites in Canada, where it now operates 3,874 stores, but achieved 21% outlet growth across its international markets during the quarter to reach 1,827.
Tim Hortons surpassed 300 stores across the Middle East and India in September 2023, in partnership with its Dubai-based franchisee AG Café. The coffee chain is seeking to reach 500 stores across the Middle East by 2025.
Additionally, Tim Hortons is poised for outlet growth in the UK, where it currently operates 75 stores, following the launch of a new franchise model. Between 20-25 new stores are expected to open annually in the UK from next year.
“These results reflect our focus on enhancing operations, delivering great guest and team member experiences, and providing great value with the best quality products in each of our brands' respective categories. I am confident we are well positioned to enter 2024 with momentum,” said Josh Kobza, CEO, RBI.
RBI reported third quarter system-wide sales growth of 10%, 16% and 7% for Burger King, Popeyes and Firehouse Subs respectively. The restaurant group operates a total of 30,375 stores across its four brands, with fast-food chain Burger King its largest contributor during the period with $7.06bn sales. Total group sales reached $11.2bn.