Canadian coffee chain Tim Hortons experienced a surge in sales of cold drinks towards the end of 2024, thanks to unusually warm winter weather. The company witnessed a remarkable over 6% growth in its cold beverage sales during the fourth quarter of 2024. This growth was primarily attributed to the uncharacteristically mild winters that Canada has been experiencing in recent times.
Impact on Tim Hortons' Sales
Tim Hortons' cold beverages division witnessed significant growth towards the end of 2024, driven by the warmer weather conditions. The parent company of Tim Hortons, Restaurant Brands International, released its earnings report for the fourth quarter and full year of 2024. During an earnings call, the company's CEO, Joshua Kobza, highlighted the impact of the warmer temperatures on sales.
Response to Sales Growth
Joshua Kobza mentioned that the above-average temperatures in the fourth quarter of 2024 led to a notable increase of over 6% in cold beverage sales at Tim Hortons locations across Canada. The CEO explained that the warmer weather typically results in higher demand for cold drinks, consequently affecting the performance of hot beverages. Additionally, the sales of Tim Horton's baked goods were also affected, as they are commonly paired with hot beverages.
Financial Performance
Tim Hortons Canada reported a 2.5% growth in comparable sales for the latest quarter, reflecting the chain's strong market presence. With over 4,000 outlets in Canada and expanding operations in the US, Europe, and Asia, Tim Hortons continues to strengthen its position in the global coffee market. Restaurant Brands International, the parent company, which also owns Burger King and Popeyes, achieved a comparable sales growth of 2.5% in the same quarter, with total revenues reaching $2.30 billion.
Changing Climate Patterns in Canada
Canada, traditionally known for its harsh winter conditions, has been witnessing a shift towards milder winters in recent years. Factors such as the climate crisis and phenomena like the El Niño effect have contributed to this change. The winter period spanning December to February in 2023 and 2024 was recorded as the warmest winter in Canada since 1948, according to the Government of Canada's Climate Trends and Variations Bulletin. Environment and Climate Change Canada's forecast for the winter of 2024 and 2025 also predicted above-normal temperatures in certain regions, indicating a continuation of the trend towards warmer winters.
Despite the impact of changing weather patterns on consumer behavior and sales performance, Tim Hortons and its parent company, Restaurant Brands International, remain adaptable and responsive to market dynamics.
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By: abharade@insider.com (Aditi Bharade)
Title: Tim Hortons Sees Growth in Cold Beverage Sales Due to Warm Winter
Sourced From: www.businessinsider.com/tim-hortons-made-money-off-cold-drinks-warm-winter-2025-2
Published Date: Thu, 13 Feb 2025 05:27:04 +0000
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