The Successful Investor Hotline – Friday, February 21, 2014

Article Excerpt

TIM HORTONS INC., $58.25, Toronto symbol THI, rose this week after it reported higher-than-expected quarterly earnings. It also raised its dividend and announced a new share buyback plan. The company operates 3,588 coffee-and-donut stores in Canada and 859 in the U.S. It also has 38 outlets in the Persian Gulf. In the three months ended December 29, 2013, Tim Hortons’ revenue rose 10.7%, to $898.5 million from $811.6 million a year earlier. That’s mainly because it renovated more outlets, which let it charge franchisees higher fees. Same-store sales rose 1.6% at its Canadian locations and 3.1% in the U.S. Earnings rose just 0.3%, to $100.6 million from $100.3 million. The company is an aggressive buyer of its own stock. As a result, its earnings per share rose 6.2%, to $0.69 from $0.65. Due to lower-than-expected sales, Tim Hortons will stop selling Cold Stone ice cream in its Canadian stores, though it will continue to do so in the U.S. It is also…