Tim Hortons Q1 profit up more than 7%

Tim Hortons 3-month TSX chart

Tim Hortons Inc. said a jump of just over 10 per cent in its revenues helped the company to a stronger bottom line in the first quarter of 2009.

The Oakville, Ont.-based restaurant chain said it made a profit of $66.4 million, or 37 cents a share, in the quarter, up from $61.8 million, or 33 cents a share, a year earlier.

Tim Hortons said its revenue rose by 10.2 per cent to $507.2 million from $460.3 million year-over-year.

"Sales growth in both our Canadian and U.S. markets was quite strong in the first quarter considering the challenging economic circumstances that continued to persist," said Don Schroeder, the company's president and CEO.

"Sales accelerated through the quarter after a slow start in January, supported by active menu and marketing programs and previous pricing in the system," he said in a statement.

Tim Hortons also said it has decided to reorganize its current U.S. parent company as a Canadian firm. If the move is completed this year, Tim Hortons said the extra costs from the change may lead the company to miss its operating income target.

As of March 29, Tim Hortons had 3,457 restaurants, including 2,930 in Canada and 527 in the United States. During the quarter, the company added 20 restaurants in Canada and eight in the U.S.