Restaurant Brands International's global sales are growing.
Sales at Tim Hortons Canada have topped pre-pandemic levels for the first time since the onset of COVID-19, parent company Restaurant Brands International Inc. reported Thursday, as the easing of pandemic restrictions paved the way for customers to return to the iconic chain.
In Canada, comparable sales grew by 14.2 percent in the second quarter. Its total revenue was up from the same period last year.
Stephen Lichtner, Restaurant Brands International head of investor relations, said that the groundwork that was laid during phase one of the "back to basics" plan was paying off with guests as they returned to Tim's.
In an interview, Duncan Fulton described Tim Hortons' Canada-wide sales growth as " pretty exceptional" and said the company saw an increase in mobility in its restaurants.
The brand's deliberate decision to increase market share in espresso and cold beverages drove the growth.
As many cities in Canada have yet to see workers return to the office full-time, the executives still think there will be upside in traffic growth.
Downtown Toronto is just getting back to work after more offices opened in the second quarter. The mobility in our downtown quarters is still a work in progress and that gives us confidence that if it comes back to pre-pandemic levels, there will have to be some tailwind in the business.
The morning part of the business is affected by hybrid working arrangements in which Canadians work from home on other days. Significant menu changes to lunch and dinner items have been a source of growth for the company.
The results for the three-month period ended June 30 comes against the backdrop of an investigation by Canadian privacy watchdogs that found Tim Hortons violated privacy laws by using its mobile app.
Tim Hortons was accused of amass invasion of privacy by the watchdogs. The investigation into the Tim Hortons mobile app began in 2020.
Tim Hortons said last week that it had reached a proposed settlement in several class-action lawsuits. The restaurant would give away coffee and doughnuts as a result of the settlement.
The findings didn't seem to have a negative impact on the business and the app is extremely popular in Canada.
He said that one third of the sales in Canada came through a digital channel.
Tim Hortons has said it no longer uses the technology in question, and is complying with investigators requests to remove all the offending data and create a plan to make sure its app complies with privacy laws going forward.
The global sales of Restaurant Brands International, which includes Burger King, Popeyes Louisiana Kitchen and Firehouse Sub, increased by 14 per cent in the second quarter.
The company reported a decrease in net income during the quarter.
The year-ago quarter's earnings were US$0.84 per share.
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