Toronto, Nov 7 - Tim Hortons Inc posted a higher third-quarter profit as robust sales in Canada offset a lackluster performance in the United States, Canada's biggest restaurant chain said Friday.
The company said it would likely miss its 2008 sales targets in the United States, where it is trying to establish a market, and close some underperforming restaurants in southern New England into next year.
Third-quarter earnings per share rose to 43 Canadian cents from 36 Canadian cents a year earlier, beating analysts' average estimate of 41 Canadian cents.
Revenue came in at C$509 million, missing analysts' average estimate of C$537 million.
"Our earnings performance and positive same-store sales growth in Canada demonstrates our brand strength in the face of unprecedented economic and consumer challenges," said Don Schroeder, president and CEO.
"While our brand in the United States is less developed and we faced sales and earnings challenges due in large part to the current economic conditions, we delivered strong consolidated performance in the third quarter," he said.
Same-store sales in Canada in the quarter grew by 3.8 percent, but they dropped 0.6 percent in the United States.