Tim Hortons Inc. 2012 Annual Report on Form 10-K
W We are one of North America’s largest quick service restaurant chains, with 4 4,264 systemwide restaurants as at year-end 2012. Tim Hortons is one of the l largest publicly-traded restaurant chains in North America based on market c capitalization, and the largest in Canada by a wide measure. In Canada, we c command approximately 42% share of the quick service restaurant trafﬁc. M f t i it More th 60% of our guests visit us 3 times or more every two weeks. We enjoy iconic brand status in Canada and than a strong, emerging presence in select regional markets in the U.S. We are also beginning to seed international growth, and we had opened 24 restaurants in the Gulf Cooperation Council by the end of 2012.
Generated positive same-store sales growth in both the Canadian and .S. mar ets for the 21st consecutive year. Continued to grow our system, opening 15 restaurants in Canada, 85 full-serve restaurants in the .S. and 1 restaurants in the Gulf Cooperation Council. Improved the guest experience by implementing enhanced digital menu boards and free Wi-Fi connectivity at most of our restaurants across Canada. roadened our guests’ payment options by accepting VISA®, VISA payWave contactless credit and Interac Flash® contactless debit cards, and select mobile credit card payments. Successful product launches, including anini sand iches and frozen lemonade in Canada, brea fast anini sand iches in the U.S., and iced lattes and single-serve coffee across North America. Source: Company Information as of ecember 0, 2012. ll mar et share data in this nnual Report is sourced from Crest data as of November 2012.
FINANCIAL HIGHLIGHTS $ in millions e cept earnings per share S . ll numbers rounded. ll nancial information presented in this report is provided in Canadian dollars unless other ise noted.
Current Ratio uic Ratio otal ebt to
1. 0. 44.7%
Revenues Operating Income S diluted
$ 3,120.5 $ $ 594.5 2.59
$2 $ $ 2.
Operating Margin et ro t Margin
Source: Company Information as of ecember 0 2012. For details regarding the calculation of the ratios referenced above, please visit: timhortons.com ca en about nancial-glossary.html
AVERAGE SAME-STORE SALES* GROWTH – CANADA ercentage gro th 10%
AVERAGE SAME-STORE SALES* GROWTH – U.S. ercentage gro th
0% 03 04 05 06 07 08 09 10 11 12
0% 03 04 05 06 07 08 09 10 11 12
10- ear Average Same-Store Sales Gro th is 5.1%
10- ear Average Same-Store Sales Gro th is 5.3%
* Includes average same-store sales at franchised and Company-operated locations open for 1 months or more. Substantially all of our restaurants are franchised.
Safe Harbor – Historical trends may not be indicative of future results. Statements in these introductory and closing pages related to the Company’s nancial results and outloo may contain for ard-loo ing statements and are uali ed in their entirety by more detailed information included in our nnual eport on orm hich includes a description of ris s that may affect the Company’s future plans and nancial performance under tem is actors. y their nature for ard-loo ing statements re uire us to ma e assumptions and are sub ect to inherent ris s and uncertainties. lease also refer to our Safe Harbor Statement included in our orm - as hibit . he ris factors identi ed in our orm - and Safe Harbor Statement could affect the Company’s actual results and may differ materially from statements e pressed in these pages. ou are encouraged to read this important information to understand more about underlying ris s facing the Company the material factors and assumptions related to the for ard-loo ing statements and the Company’s reliance on the Safe Harbor Statement.
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