Restaurant Brands (RBI) CFO Josh Kozba presented this week in Toronto and delivered some rarely heard Tim’s US and Canada color. By background, the Tim’s franchisee association continues to litigate over alleged misuse of marketing fund issues. The issue of upset Tim’s franchisees was the very first question out of the gate (reinforced by local press this weekend); Josh Kozba did his best to talk around the issue by noting “we will continue to talk about the good of the brand” going forward. That said, just this week, RBI sent letters of default to the nine Tims Association board members. On top of this, the minimum wage is rising steeply this fall in Ontario and Alberta. Tim’s Canada franchisees took a small price increase on August 1st (app. 10 cents) and the brand is pushing back on requests for a larger price increase. The RBI CFO, Josh Kobza said they would continue to “discuss it with the franchisees”. Otherwise, Kobza noted the new Tim’s Canada espresso platform was off to a slow start from a hit rate standpoint. They introduced an Iced Latte this summer and a Pumpkin Spice flavor recently. In the United States Tim’s continues to look for large well-heeled franchisees for US development. While some are on board, their new store opening progress continues at low ebb. There was no hint of comps sales trends.