The coffee chain entered three new markets and grew its international footprint by 21% in 2023 but saw annual net store closures in Canada for the second consecutive year
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Tim Hortons’ Park Royal store in London, UK | Photo credit: Tim Hortons
Restaurant Brands International (RBI) has posted steady 2023 revenues for Tim Hortons, underpinned by strong international outlet and sales growth.
Tim Hortons opened 227 net new stores outside of North America last year to reach 1,308 sites across 16 markets. The Ontario-based coffee chain opened launched in Pakistan, Singapore and South Korea in 2023, and recently announced plans to enter Panama in 2024.
However, Tim Hortons continues to face challenges in its key North America market, closing two net stores in Canada – its eighth consecutive quarter of closures in its native market – and opening just eight outlets in the US to operate 3,894 and 631 sites respectively.
The coffee chain achieved 7.6% year-on-year sales growth in Canada and the US to reach $7.2bn last year, with like-for-like sales increasing 11%. Ninety percent ($6.5bn) of the segment’s revenue came from its Canadian business.
Tim Hortons’ international sales reached $600m in the 12 months ending 31 December 2023, buoyed by 40% like-for-like sales growth.
“We are delivering better experiences for our guests, better profitability for our franchisees and are making the right long-term investments behind the growth of our brands. We have started 2024 with a foundation of strong operational performance and I'm thankful to all our teams, franchisees and their team members who work so hard to make us successful,” said Josh Kobza, CEO, RBI.
RBI recently changed its fiscal reporting to individually cover the Tim Hortons, Burger King, Popeyes and Firehouse Subs brands within a single Canada and US segment. Its international business is now under a separate segment consolidating all four brands.
Tim Hortons contributed 18% of RBI’s total $42.9bn sales in 2023. The group’s largest brand by sales and outlets is Burger King, which generated $11.5bn annual revenues, ahead of Popeyes ($5.9bn) and Firehouse Subs ($1.2bn). RBI’s total International segment achieved sales of $17.1bn.