(By Balachander) Tim Hortons Inc. (NYSE:THI) reported a jump in quarterly earnings as the North American quick service restaurant chain benefited from average cheque gains and new product launches.
The Canada-based company, however, said the economic environment in both Canada and the U.S. remained volatile, and continued uncertainty appears to be impacting consumer confidence. "Some of that impact of moderating sales in the second quarter which carried through into July."
Earnings per share (EPS) attributable to THI grew 19 percent to 69 cents and net income increased 13 percent to $108 million.
Revenue rose nearly 12 percent to C$786 million ($790.4 million). Same-store sales grew 1.8 percent in Canada and 4.9 percent in the United States.
Total costs and expenses increased 12 percent for the second quarter ended July 1.
The Oakville, Canada-based company's menu includes coffee, espresso-based hot and cold specialty drinks, among others.
As of July 1, Tim Hortons had 4,071 systemwide restaurants, including 3,326 in Canada, 734 in the United States and 11 in the Gulf Cooperation Council.
THI shares, which has been trading between $41.74 and $58.47 over the past year, closed Wednesday's regular trading at $52.58 on the NYSE.