Canadian coffee chain Tim Hortons’ shares on Wednesday surged to a 52-week high of C$64.18 in Toronto on high second quarter earnings per share and increased sales on new menu items.
As of 11:03 am ET, the company’s shares rose 6.3 percent to C$63.83 surging to as high as C$64.10 earlier in the day.
With the development, the coffee chain giant is hopeful of doing far better than expected this year.
Marc Caira, company’s President and Chief Executive, said, “Guests have been responding favourably to our menu and technology innovation, resulting in good momentum in our business.”
Caira further said, “Our second quarter results reflect strong organizational alignment and execution of our Winning in the New Era strategic plan.”
In order to boost profits to achieve the targets for the year, the company redesigned its menu in February this year. The aim was also to boost more spending and open new restaurant formats.
Tim Hortons’ net income for the three months to June 29 was USD 123.8 million as compared to last year’s USD 123.7 million in the corresponding period.
According to Tim Hortons, the company’s growth was a result of successful product launches, including Canada’s Crispy Chicken sandwich and America’s Frozen Hot Chocolate.
The company’s earnings on a per share basis rose 13.6 percent to 92 cents from 81 cents in 2013. The firm recorded over 9 percent to USD 874.3 million in total revenues. While the store sales in Canada jumped 2.6 percent, the comparable store sales in the US climbed 5.9 percent.