Profile: Tim Hortons Inc (THI.TO)
5 Dec 2013
Tim Hortons Inc., incorporated on June 23, 2009, is a quick service restaurant in North America. The Company’s menu includes premium coffee, espresso-based hot and cold specialty drinks, including lattes, cappuccinos and espresso shots, specialty teas, fruit smoothies, home-style soups, grilled Panini and classic sandwiches, wraps, hot breakfast sandwiches and fresh baked goods, including donuts. As of December 31, 2012, the Company had 4,264 systemwide restaurants. Tim Hortons restaurants operate in a variety of formats. The Company’s standard restaurant locations typically range from 1,000 to 3,080 square feet. As of December 30, 2012, the Company operated directly (without restaurant owners) 18 restaurants in Canada and four restaurants in the United States.
As of December 30, 2012, restaurant owners operated 99.5% of its systemwide restaurants. The Company directly owns and operates (without restaurant owners) only a small number of company restaurants in Canada and the United States. It also has warehouse and distribution operations that supply paper and dry goods to its Canadian restaurants, and supply frozen baked goods and some refrigerated products to its Ontario restaurants and Quebec restaurants. In the United States, it supplies similar products to system restaurants through thirdparty distributors. The Company’s operations also include coffee roasting plants in Rochester, New York, and Hamilton, Ontario, and a fondant and fills manufacturing facility in Oakville, Ontario.
The Company’s non-standard restaurant locations include small restaurants; self-serve kiosks, typically with a limited product offering, in offices, hospitals, colleges, airports, grocery stores, gas and other convenience locations; drive-thru-only units on smaller pieces of property; and full-serve locations in sports arenas and stadiums that operate only during on-site events. Additionally, in Canada, The Company has used self-serve kiosks where existing full-service locations are at full capacity. As at December 30, 2012, the number of Tim Hortons restaurants across Canada, both standard and nonstandard locations totaled 3,436. As of December 30, 2012, the Company had presence with 804 restaurants, including self-serve kiosks, in 13 states, concentrated in the Northeast in New York and Maine, and in the Midwest in Michigan, Ohio and Pennsylvania.
The Company provides ongoing training and education to restaurant owners and their staff after completion of the initial training programs. The Company is a distributor to Tim Hortons restaurants through five distribution centers located in Langley, British Columbia; Calgary, Alberta; Kingston, Ontario; Guelph, Ontario, and Debert, Nova Scotia. The Guelph and the Kingston facilities distribute frozen, refrigerated and shelf-stable products and dried goods to restaurants in its Ontario and Quebec markets. The Company owns or leases a number of trucks and trailers that regularly deliver to its Canadian restaurants. It uses third-party distributors to deliver all products to its United States restaurants and to deliver to certain limited geographic areas of Canada. Its international licensee, Apparel FZCO (Apparel), is responsible for local delivery of all products in its market in the Gulf Cooperation Council (GCC) through the use of third-party distributors.
The Company offers home-brew coffee through various lines of distribution in Canada and the United States, including certain grocery stores. Through TimShop, an e-commerce platform, Canadian and United State guests can order a range of items online at shop.timhortons.com and shopus.timhortons.com. During the year ended December 30, 2012, it also introduced its premium-blend coffee, decaffeinated coffee, and lattes, in a single-serve format using the Kraft Tassimo T-Disc on-demand beverage platform, which is sold primarily in Tim Hortons restaurants in Canada and the United States and other retail channels in the United States. In addition to food items, its restaurants sell a variety of promotional products and merchandise on a seasonal basis and also sell home coffee brewers, home-brew coffee, boxed teas, and other products throughout the year. The Company has two wholly owned coffee roasting facilities in Rochester, New York and Hamilton, Ontario. The Company blends all of the coffee for its restaurants and also for the Company’s take home packaged coffee. It also owns a facility that produces fondants, fills, and ready-to-use glaze, which are used in connection with a number of the products produced in its Always Fresh baking system. As of December 30, 2012, there were 101 combination restaurants in the TIMWEN Partnership, all of which were in Canada, and all of which were franchised. The Company also has a small number of combination restaurants that are not held by the TIMWEN Partnership. As of December 30, 2012, there were 20 such restaurants in Canada, all of which were franchised, and 30 such restaurants in the United States all of which were franchised. For the United States combination restaurants, it generally owns or leases the land, and typically owns the building and leases or subleases, as applicable, a portion of the location to the Tim Hortons restaurant owner (for the Tim Hortons restaurant) and to The Wendy’s Company (Wendy’s) (for the Wendy’s restaurant).
The Company competes with McDonald’s, Wendy’s, Starbucks, Subway and Dunkin’ Donuts.
Tim Hortons Inc
874 Sinclair Road
OAKVILLE ON L6K 2Y1