Tim Horton's expanding into the Philippines and opening more US outlets

The parent company of Tim Hortons has reported a big increase in quarterly profits compared with the same quarter last year, in spite of the fact that revenue is flat.

The flat revenue was mainly the result of the negative impact of currency fluctuation in spite of growth in sales volume. Tim Hortons is owned by Restaurant Brands International(RBI). The result for the second quarter of 2016 ending on June 30th was a net income of $90.9 million US or 38 cents per share. In the second quarter of 2015 the net income was just $11.0 million or five cents a share. The revenue stream was $759.8 million from Tim Hortons and $280.4 million from Burger King. This has changed little since last year.

Last year's profits were reduced by one-time costs associated with the acquisition of the Tim Hortons chain. RBI was formed in December of 2014 by a merger of US fast-food chain Burger King and Tim Hortons. RBI is the third largest fast-food restaurant operator in the world. It has headquarters alongside Tim Hortons in Oakville Ontario, but there are also US headquarters in Miami Florida. Both companies retained their existing operations. In spite of the Canadian base of Tim Hortons, the majority owner of RBI is the Brazilian investment company 3G Capital. Tim Hortons began its business in Canada in 1964 with a single restaurant. It now has most of its 4,400 restaurants still in Canada.

RBI is intending to expand the Tim Hortons chain throughout the state of Minnesota in a 14-year partnership with Restaurant Development Partners (RDP.) Details of the agreement were not released. The new president of RDP, Mark Holly, has a decade of experience with Tim Hortons. In February, RBI signed on with the Luke Family of Brands to expand Tim Hortons in the state of Indiana.

RBI has partnered with a group of investors to establish a franchise joint venture company that will sell Tim Hortons coffee and donuts in the Philippines. The Philippines was picked as the first country to expand into because it has a strong economy and a growing quick-service market according to Daniel Schwartz, CEO of RBI. He said that after months of market research, the company determined that Filipinos had an affinity for coffee and baked goods. While the chief financial officer of the RBI Joshua Kobza did not reveal how many shops it would open in the Philippines, he said the company aimed to become a leader in the market. The stores will offer some of the staples one finds in Canadian locations such as timbits and iced capps but also some new products. He said he hopes the first shops will open soon. He expects to open more international shops in the future. The 2015 TIm Hortons annual report shows most restaurants are still in Canada with 14.7 percent in the US and 2.6 percent in the Middle East.

Read more: http://www.digitaljournal.com/business/tim-hortons-expanding-in-usa-and-into-the-philippines/article/471755#ixzz4H9LrtHp8