Canadian quick-service restaurant chain Tim Hortons, Inc. (THI, THI.TO) Wednesday said it has appointed Marc Caira, a longtime senior Nestlé executive, as its president and chief executive, effective July 2, 2013, replacing Paul House, who will become non-executive chairman of the board. The company also reported a lower profit in its 'soft' first quarter, reflecting corporate re-organization expenses.
Caira will also stand for election as a director at the annual meeting of shareholders. Most recently, he was Global CEO of Nestlé Professional. He was a member of the executive board of Swiss food and nutrition products giant Nestle S.A. (NSRGY.PK, NSRGF.PK).
In the first-quarter, net income attributable to the company declined to C$86.17 million from C$88.78 million in the prior year, impacted by corporate re-organization expenses. However, earnings per share remained unchanged at C$0.56. The impact of corporate reorganization expenses on earnings per share were C$0.05 in the recent quarter.
On average, 17 analysts polled by Thomson Reuters expected earnings per share of C$0.62 for the quarter. Analysts' estimates typically exclude one-time items.
According to the company, the decline in net income attributable to THI was largely offset by the positive, cumulative impact of its share repurchase program.
Total revenues for the quarter grew 1.4 percent to C$731.54 million, while 11 analysts estimated revenues of C$749.61 million.
Systemwide sales grew 3.2 percent on a constant currency basis, driven by new restaurant development in Canada and the U.S., with net growth of 246 restaurants systemwide. The company said the revenue growth rate was below that of systemwide sales due to a 2.0% decline in distribution sales, the largest component of revenues.
Total costs and expenses increased 2.4 percent to C$603.62 million.
Further, the board has declared a quarterly dividend of C$0.26 per share, up from $0.21 paid last year, to shareholders of record on May 23, 2013, payable on June 7.
THI.TO is currently trading at C$57.3, down 2.29 percent on the Toronto Stock Exchange. On the NYSE, THI trades at $56.65, down 2.95 percent.
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