{"id":53304,"date":"2025-08-08T00:56:07","date_gmt":"2025-08-08T00:56:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/53304\/"},"modified":"2025-08-08T00:56:07","modified_gmt":"2025-08-08T00:56:07","slug":"tim-hortons-parent-posts-lower-than-expected-profits-for-second-quarter-beaten-back-by-expenses","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/53304\/","title":{"rendered":"Tim Hortons parent posts lower-than-expected profits for second quarter, beaten back by expenses"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Tim Hortons, RBI\u2019s biggest division, has been dealing with rising coffee prices as a result of consecutive seasons of adverse weather for arabica beans.Jeff McIntosh\/The Canadian Press<\/p>\n

The restaurant giant that owns Tim Hortons and Burger King posted second-quarter revenues that beat analyst expectations and surpassed last year\u2019s results, but reported lower profit because of steeper expenses, including high prices for commodities such as coffee and beef.<\/p>\n

Restaurant Brands International Inc. QSR-T<\/a> garnered US$2.41-billion in revenue in its second quarter, beating analyst estimates of US$2.34-billion while topping last year\u2019s second-quarter revenue of US$2.08-billion. <\/p>\n

Net income attributable to shareholders dropped to US$189-million, or 57 cents a share, far below consensus analyst estimates of 94 US cents and down from US$280-million or 88 US cents a share in the same quarter last year.<\/p>\n

Tim Hortons looks to switch to Canadian suppliers for U.S.-sourced items amid tariff threat<\/a><\/p>\n

The company\u2019s second-quarter operating costs and expenses rose about 36 per cent, compared with a 16-per-cent increase in 2024. Rising expenses ate into net income, including commodity, supply chain and advertising costs.<\/p>\n

Tim Hortons, RBI\u2019s biggest division, which accounts for about 45 per cent of its revenue, had been dealing with rising coffee prices<\/a> as a result of consecutive seasons of adverse weather for arabica beans. Coffee accounts for about 15 per cent of its commodity food costs.<\/p>\n

But RBI said relief is on the horizon<\/a> with increased supply and lower prices. <\/p>\n

\u201cWe\u2019ve been encouraged to see some normalization in coffee prices following a period of historic highs,\u201d RBI chief financial officer Sami Siddiqui said during an earnings call Wednesday morning.<\/p>\n

Tim Hortons\u2019 same-store sales increased by 3.4 per cent in the second quarter from last year\u2019s sales. That\u2019s shy of its 2024 same-store sales increase of 4.6 per cent over 2023.<\/p>\n

Similar to high coffee prices, the price of beef, which makes up about one-quarter of the commodity food costs for Burger King in the U.S., increased at the beginning of 2025.<\/p>\n

Mr. Siddiqui said beef prices increased in percentage terms in the \u201chigh-teens year-over-year, which we expect to translate into a mid-single-digit increase in the total commodity basket at Burger King U.S. for the full year \u201825.\u201d<\/p>\n

Beef prices in the U.S. are expected to rebound after years of herd downsizing pushed prices to record highs in 2025<\/a>. Canada has also had a rise in beef prices<\/a> because of fewer cows being raised in the country.<\/p>\n

Burger King\u2019s quarterly same-store sales were up 1.3 per cent in the second quarter, an improvement from 2024\u2019s second quarter, when it reported a 0.1-per-cent drop in same-store sales from 2023.<\/p>\n

Despite those commodity price increases, the company said it is still on track for 8-per-cent adjusted operating income growth in 2025 using existing operations.<\/p>\n

Tim Hortons parent Restaurant Brands sees weaker spending as consumer confidence dips<\/a><\/p>\n

The company said its advertising and promotional efforts helped boost revenue. <\/p>\n

Tim Hortons\u2019 new scrambled egg loaded boxes, advertised by actor Ryan Reynolds, helped drive more than 10-per-cent growth in breakfast food sales in the second quarter, chief executive officer Josh Kobza said.<\/p>\n

Mr. Kobza also credited a promotional deal tied to the movie How to Train Your Dragon for boosting sales at Burger King. <\/p>\n

Like other major fast-food chains, Restaurant Brands also found its value meals have boosted foot traffic as consumer spending in the U.S. drops amid concerns related to tariffs<\/a>.<\/p>\n

Burger King introduced value meals, starting at $5, and another RBI-owned restaurant, Popeyes Louisiana Kitchen Inc., launched $3.99 wraps. <\/p>\n

Although total revenues grew, Popeyes\u2019 same-store sales fell by 1.4 per cent in the second-quarter, compared with last year. <\/p>\n

With a report from Reuters<\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Tim Hortons, RBI\u2019s biggest division, has been dealing with rising coffee prices as…\n","protected":false},"author":2,"featured_media":53305,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[901,888,902,879,877,903,45,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-53304","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-business","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/53304","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=53304"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/53304\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/53305"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=53304"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=53304"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=53304"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}