The Canadian Press reports that Tim Hortons Inc. THI-T brewed up a bigger profit in its latest quarter and is preparing to serve up higher dividends for its shareholders.
The Ontario-based restaurant company says it has boosted the dividend range and will raise its quarterly payout by 30 per cent, to 13 cents per common share.
The coffee, doughnut and sandwich chain also says it will use some of its cash to buy back shares from the open market.
Tim Hortons had profit of $91-million, or 51 cents per diluted share in the fourth quarter – a 32-per-cent gain from the year-earlier profit.
Revenue increased by 9.2 per cent, to $615.3-million in the three-months ended Dec. 31 from $563.7-million a year earlier.
Tims says sales at its stores accelerated each month of the quarter and the momentum continued into the current year.
Same-store sales, which compare locations open for at least a year, were up 3.4 per cent in Canada during the quarter.
Same-store sales growth was somewhat slower for Tim Hortons in the United States – rising by 2.1 per cent.