Tim Hortons closes 36 U.S. stores
11/11/2010 9:01:19 AM
Tim Hortons says it plans to close the doors at 36 of its coffee and doughnut shops in the northeastern United States.
The iconic Canadian restaurant operator has been making inroads into the U.S. market but announced that it will make a strategic retreat from Providence, R.I., and Hartford, Conn.
All but two of the store closures will come in those two cities, and the company will record a $20.9 million US accounting charge to reflect the impaired value of those assets.
That will be followed by an additional charge of up to $30 million US that will be recorded in the fourth quarter.
The closures, which represent a small fraction of the 600-plus stores Tims has in the United States, were largely responsible for the company’s third-quarter profit falling short of analysts’ expectations.
Tim Hortons earned $73.8 million in the third quarter, or 42 cents per share – up more than 20 per cent from last year, but falling short of analysts expectations of 53 cents per share.