Tim Horton’s revenues dropped by 13.7 per cent in Canada for the third quarter, ended Sept. 30.
That dragged down total sales and profits for its owner, Restaurant Brands and profits for its owner, Restaurant Brands international Inc., which includes Burger King, Popeye’s and Louisiana Kitchen.
Net income was $223 million, down from $351 million for the same quarter last year and total revenue declined by 8.3 per cent to $1.3 billion.
Restaurant Brands diverted attention from the poor results by announcing that it is installing new menu boards for drive-through service from all of its restaurants.
The initiative is being led from head office in Toronto.
Restaurant Brands is controlled by a combination of Warren Buffet’s Berkshire Hathaway investment company and 3G of Brazil which is in charge of management.
I think it was only a matter of time until Tim's revenues would decline because that is part of the pattern with the 3G guys. First they kick out all of the experienced managers, bring in their own young bucks who cut, cut, cut. And profits go up - very short term - and then decline as sales go down.
I wonder if and when Buffet will pull the plug, either on the whole business or just on Tim's. It was bought once before by Wendy's and then sold back to Canadians.
Maybe Buffer will also bail on his partnership with 3G in Heinz-Kraft where the familiar 4G pattern is also playing out.
