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Tim Hortons to refocus on 'founding values' after disappointing quarterly sales

Last Updated Feb 10, 2020 at 2:27 pm EDT

People walk past the newly renovated Tim Hortons in Toronto on Thursday, July 25, 2019. THE CANADIAN PRESS/Nathan Denette

Restaurant Brands International Inc. raised its dividend as it reported its sales grew compared with a year ago, boosted by its new chicken sandwich at Popeyes.

However, the company says performance at Tim Hortons did not reflect the strength of the brand and that it would work to refocus on its “founding values” in an effort to reignite growth in Canada.

The parent company of Tim Hortons, Burger King and Popeyes, which keeps its books in U.S. dollars, says it will pay a quarterly dividend of 52 cents per share, up from an earlier payment of 50 cents.

The increased payment to shareholders came as Restaurant Brands reported net income of US$257 million or 54 cents per diluted share for the quarter ended Dec. 31, down from US$301 million or 64 cents per diluted share in the last three months of 2018.

On an adjusted basis, Restaurant Brands says it earned US$351 million or 75 cents per share for the quarter, up from an adjusted profit of US$318 million or 68 cents per share in the same quarter a year earlier.

Revenue totalled nearly US$1.48 billion, up from nearly US$1.39 billion. Comparable sales at Tim Hortons were down 4.3 per cent for the quarter, while Burger King gained 2.8 per cent and Popeye’s rose 34.4 per cent, fuelled by its new chicken sandwich.