Q3 2014
Investor Fact Sheet
Tim Hortons is one of the largest publicly-traded restaurant chains in North America based on market
capitalization, and the largest in Canada by a wide-measure. Operating in the quick service segment of the
restaurant industry, Tim Hortons appeals to a broad range of consumer tastes, with a menu that includes
premium coffee, hot and cold specialty drinks (including lattes, cappuccinos and espresso shots), specialty
teas and fruit smoothies, fresh baked goods, grilled Panini and classic sandwiches, wraps, soups, prepared
foods and other food products. As of September 28, 2014, Tim Hortons had 4,590 systemwide restaurants,
including 3,665 in Canada, 869 in the United States and 56 in the Gulf Cooperation Council (GCC).
Our Promise: We will delight every consumer who comes in contact with our brand
by providing superior quality products/services and the ultimate guest experience.
Q3 Highlights
• Strong same-store sales growth in both Canada and the U.S. driven primarily by gains in average cheque
• Sales continued to benefit from innovations including Spicy Crispy Chicken Sandwich and Dark Roast coffee
• On August 26, 2014, the Company announced it had entered into a definitive agreement with Burger King
Worldwide, Inc. to create the world’s third largest quick service restaurant company
• Transaction related costs of $27.3 million had a negative impact of $0.21 on EPS
Q3 Same-Store
Sales Growth
Canada
U.S.
3.5%
6.8%
Q3 EPS:
$0.74
DEVELOPMENT
Restaurants Opened
(2.2)%
Q3 Adjusted EPS*:
$0.95
+25.2%
CANADA
41
U.S.
10
INTERNATIONAL
6
*Adjusted EPS is a non-GAAP measure. Please see
reconciliation information in footnote (1).
Key Pillars of our 2014-2018 Strategic Plan: Winning in the New Era
CANADA
U.S.
INTERNATIONAL
Defend the core
Core and priority market AUV
growth
Grow and learn in GCC
Narrow the average
cheque gap
Capture new ‘demand spaces’
Extend our brand reach
Optimize box and capital
deployment model
Focus on select core and priority
markets
Validate strategy in 2014
beyond GCC
Redeploy resources
Positioned to enter new
market(s) in 2015
Q3 2014
Investor Fact Sheet
FINANCIAL HIGHLIGHTS
(In millions, except Earnings Per Share (EPS). All numbers rounded.
All financial information is presented in Canadian dollars.)
Q3 2014
Q3 2013
7.5%
5.3%
3.5%
6.8%
1.7%
3.0%
Total Revenues
$909.2
$825.4
Total Costs & Expenses, net
$740.3
$656.5
Operating Income
$168.8
$168.8
$196.1
$169.8
Net Income Attributable to THI
$98.1
$113.9
Diluted EPS Attributable to THI
$0.74
$0.75
Adjusted EPS(1)
$0.95
$0.76
Avg. Diluted Shares Outstanding
132.9
150.9
Systemwide Sales Growth*
Same-Store Sales Growth
Adjusted Operating
Can
US
Income(1)
Price
Price
Price
Price
Q3 2013
$168.8
$168.8
27.3
-
-
1.0
$196.1
$169.8
Q3 2014
Q3 2013
$0.74
$0.75
0.21
-
-
0.01
$0.95
$0.76
Diluted EPS
Add: Transaction costs
Add: Corporate reorganization
expenses
Adjusted diluted EPS
Scott Bonikowsky
SVP, Corporate Affairs & IR
David Clanachan
Chief Operating Officer
18.6%
10.8%
Cynthia Devine
Chief Financial Officer
Mike Meilleur
EVP, U.S.
Peter Nowlan
(as of September 28, 2014)
THI Daily (TSX: THI)
$92
$88
$84
$80
$76
$72
$68
$64
$60
$56
July
August
Last Price
$88.38
52-week High
$89.99
52-week Low
$56.12
Jill Sutton
Transfer Agent:
Roland Walton
Computershare Investor Services
1(800) 564-6253 (Within N.A.)
1(514) 982-7555 (Outside N.A.)
www.computershare.com/service
EVP, General Counsel
President, Canada
Steve Wuthmann
Chief Brand & Marketing EVP, Human Resources
Officer
September
Key Trading Data (as of September 28, 2014)
Market Capitalization
*All numbers rounded
Source: Company information as of September 28, 2014.
Chief Executive Officer
51.9%
24.3%
19.4%
Operating Margin
Net Profit Margin
SHARE PERFORMANCE
Q3 2014
Add: Corporate reorganization
expenses
Marc Caira
26.7
3.4
27.2
17.9
Source: Company information as of September 28, 2014.
Add: Transaction costs
Executive Management:
Earnings
Revenue
Book
Cash Flow
PROFITABILITY RATIOS
INFORMATION ON NON-GAAP MEASURES
Reconciliation of Adjusted EPS
to
to
to
to
Return on Equity
Return on Invested Capital
Return on Assets
Source: Company information as of September 28, 2014.
Adjusted operating income
1.2
0.6
3.3
MANAGEMENT EFFECTIVENESS
(1)Adjusted operating income and adjusted EPS are non-GAAP measures. Please see below for
the reconciliation to Operating Income and EPS, the closest GAAP measure and details of the
reconciling items
Operating income
Current Ratio
Quick Ratio
Debt to Equity Ratio
VALUATION RATIOS
*Determined using a constant exchange rate to exclude the effects of foreign currency translation
Reconciliation of Adjusted
Operating Income
FINANCIAL STRENGTH (as of September 28, 2014)
~$11.7 billion
Contact:
Scott Bonikowsky
SVP, Corporate Affairs & Investor
Relations
(905) 339-6186
bonikowsky_scott@timhortons.com
874 Sinclair Road
Oakville, ON L6K 2Y1