Tim Hortons sales flat in Q2 as Burger King fuels RBI profit surge

Tim Hortons posted flat sales in the second quarter despite aggressive product launches, while parent company Restaurants Brands International's overall profit more than doubled, buoyed by stronger performance from Burger King.

Tims posted US$2 billion in system-wide sales in Q2, essentially unchanged from a year earlier. Comparable sales growth was just 0.1 per cent, a stark drop from 3.4 per cent a year prior and well below Burger King's 8.6 per cent comparable-sales leap over the same period.

RBI Chief Executive Josh Kobza said the company's marketing calendar underperformed expectations. "Our calendar didn't drive the growth we've come to expect from Tims and was unable to lap last year's major platform launches," he said. The chain spent much of the quarter pushing grilled-cheese-style sandwiches brought back in response to consumer demand, plus new quencher flavours and World Cup-themed Timbit varieties.

Kobza didn't name which campaigns failed but signalled confidence the slowdown is temporary. "We were encouraged by stronger business performance as the quarter progressed and are excited about the back-half calendar," he said.

Upcoming launches include a Harry Potter partnership featuring house-themed doughnuts and a colour-changing cup for a Forbidden Forest quencher. New breakfast flavours and a holiday partnership are also planned, though specifics weren't disclosed.

Tims accounts for roughly 41 per cent of RBI's operating profit. For the quarter ended June 30, RBI's profit attributable to common shareholders reached US$507 million, compared with US$189 million a year earlier. On an adjusted basis, the company earned US$1.07 per diluted share, up from 94 cents a year prior.