Tim Hortons Boosts Q3 Profit to $542 Million on Matcha Sales Surge

Restaurant Brands International Inc. reported net income of US$542 million for the third quarter, a sharp increase from the US$315 million earned during the same period last year. The parent company of Tim Hortons and Burger King attributed the profit jump to strong performance across its brands. This growth occurred despite a challenging consumer environment characterized by cost-of-living pressures.

Same-store sales for Tim Hortons in Canada increased by 1.8 percent in the quarter. While this figure represents an improvement from the previous quarter, it marks a slowdown compared to the 4.2 percent growth recorded a year earlier. Cold beverage sales specifically climbed by nearly five percent, driven largely by new product introductions.

Josh Kobza, chief executive of Restaurant Brands, stated that the chain is capturing demand from a new demographic. He noted that these guests are generally younger and skew more female. Kobza observed that this group visits more frequently in the afternoon and tends to spend more per transaction than traditional morning coffee buyers.

The company introduced matcha drinks in July, which have shown a distinct sales pattern. Kobza explained that matcha sales peak on weekends rather than during the typical morning rush. This behavioral shift differs from the standard hot-brewed coffee consumption habits of the brand's core customer base.

Axel Schwan, president of Tim Hortons in Canada and the United States, confirmed that the chain will reintroduce discontinued menu items in the first quarter of 2027. He said the decision responds to direct customer requests. This strategy follows the successful return of grilled cheese melts and the turkey bacon club with honey mustard earlier this year. Schwan also announced a holiday collaboration with the 2003 film Elf, which will debut in November.

The company is executing a $400 million investment plan in Canada this year. The initiative includes opening 80 new restaurants and renovating 400 existing locations. Schwan said further renovations and new openings are planned for 2027. He emphasized that maintaining affordable pricing remains a central priority for the brand.

Restaurant Brands posted revenue of US$2.53 billion for the quarter, up from US$2.45 billion in the prior year. System-wide sales reached US$12.97 billion, an increase from US$12.28 billion a year earlier. Comparable sales for the quarter rose by 3.8 percent. The company reported diluted earnings of US$1.54 per share, compared to 96 cents a year earlier.