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Tim Hortons moving to milk alternatives, better bacon to help boost sales – Global News

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Sales and franchisee profits at Tim Hortons fell in its most recent quarter, prompting parent company Restaurant Brands International Inc. to launch a back-to-basics approach to regain momentum.

“There is clearly a sizable gap between what this brand is capable of and the performance we’ve delivered,” said CEO Jose Cil during a conference call with analysts Monday after the company released its fourth-quarter and full-year financial results.


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Tim Hortons wants to remind customers it is still very much Canadian

Comparable sales, a key retail metric, at Tim Hortons fell 4.3 per cent for the quarter ended Dec. 31, including by 4.6 per cent in Canada.

Investment in the company’s rewards program geared at attracting members dragged down comparable sales by three per cent in Canada, the company said, while softness in lunch food added another one per cent of negative performance.

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System-wide sales for the quarter fell 2.9 per cent at Tim Hortons, whose parent company keeps its books in U.S. dollars, at US$1.679 billion.






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Coming soon to the breakfast table: Timbits cereal


Coming soon to the breakfast table: Timbits cereal

Franchisee profitability also fell compared to last year, said Cil, though the company did not provide a figure. He attributed the drop to lower sales, as well as pressure from labour costs in parts of Canada.

RBI plans to fix the coffee-and-doughnut chain’s performance by elevating the quality of its core categories through innovation and investments in modernizing the brand.

It plans to accelerate a roll out of fresh coffee brewers for better-tasting and more consistent coffee quality, said Cil.

The chain also plans to start offering more than one type of milk for customers, including skim milk and a dairy alternative, almond, starting this spring.


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Tim Hortons tops list as MPs’ favourite restaurant. They expensed $116K over 4 years

“These adjustments may seem basic, but that’s the point: being the absolute best at the basics that we’re already famous for,” said Cil.

On the breakfast front, Tim Hortons is working to improve the quality of bacon in its sandwiches.

The company will transform nearly all its drive-through boards to digital from paper, he said, which will allow it to tailor offerings based on location, time, weather and other factors.

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Tim Hortons is also shaking up its loyalty program, which it says has more than 7.5 million active members but only about a quarter who shared contact information. The new program will be based on points rather than visits and make most of the menu items available for redemption.






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Justin Bieber rants about Tim Hortons cup lids


Justin Bieber rants about Tim Hortons cup lids

When the company starts the Roll-up-the-rim contest in the coming weeks, it will have been updated to tie into its digital focus, and will help drive digital adoption and loyalty registration.

The rewards program is expected to continue to drag down sales for several quarters.

The company did not say whether Tim Hortons, which has about 30 stores in China mostly in the Shanghai region, has seen any impact from the ongoing novel coronavirus outbreak.

RBI’s principal focus is on the health and safety of its employees in the country, said Cil in an interview following the conference call, and RBI is working closely with its master franchisee partner and the local authorities to take any measures necessary.

“Several of the restaurants have been temporarily closed,” he said.

“We don’t typically share an outlook,” Cil said, but the company doesn’t believe the outbreak has changed any of its long-term objectives or goals in China. RBI announced in 2018 that it plans to open more than 1,500 Tim Hortons locations in the country over a decade.

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Tim Hortons stops selling Beyond Meat breakfast sandwiches in Ontario, B.C.

On the call, Cil noted the impact of coronavirus when speaking about Burger King’s performance. Burger King China accounts for about two per cent of the chain’s consolidated system-wide sales, he said.

“While it’s too early to say how long the impact on our business there will last, we’re monitoring the situation very closely.”

The poor Tim Hortons performance came as RBI sales grew, boosted by its new chicken sandwich at Popeyes, and the company raised its dividend.

The parent company of Tim Hortons, Burger King and Popeyes will pay a quarterly dividend of 52 cents per share, up from an earlier payment of 50 cents.

RBI reported net income of US$257 million or 54 cents per diluted share for the quarter, down from US$301 million or 64 cents per diluted share in the last three months of 2018.






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Tim Hortons president stepping down after 2 years


Tim Hortons president stepping down after 2 years

On an adjusted basis, Restaurant Brands earned US$351 million or 75 cents per share for the quarter, up from an adjusted profit of US$318 million or 68 cents per share in the same quarter a year earlier.

Revenue totalled nearly US$1.48 billion, up from nearly US$1.39 billion. Burger King comparable sales grew 2.8 per cent and Popeyes rose 34.4 per cent, fuelled by the chicken sandwich.

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The company was expected to post 73 cents per share in adjusted profits on US$1.46 billion in revenues, according to financial markets data firm Refinitiv.

For the full year, net earnings were US$1.11 billion on US$5.6 billion of revenues, compared with US$1.2 billion on $5.59 billion of revenues in 2018. Adjusted profits equalled $2.72 per share, one cent better than estimates.

This report by The Canadian Press was first published Feb. 10, 2020.

© 2020 The Canadian Press

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Commercial fishers and wild salmon advocates cheer large returns to B.C. waters

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VICTORIA — The summer of 2022 is shaping up to be a bumper season for both pink and sockeye salmon in British Columbia rivers, with one veteran Indigenous fisherman reporting the biggest catches of sockeye in decades.

Mitch Dudoward has worked in the salmon industry for more than 40 years, and says fishing on the Skeena River in northwest B.C. has never been better.

“This is the best season I can recall in my lifetime with the numbers we are catching,” said Dudoward, who recently completely a big sockeye haul aboard his gillnetter Irenda.

Bob Chamberlin, chairman of the Indigenous-led First Nations Wild Salmon Alliance, meanwhile said that thousands of pink salmon are in Central Coast rivers after years of minimal returns.

The strong run comes two years after the closure of two open-net Atlantic salmon farms in the area.

“We had targeted those farms,” said Chamberlin, whose group wants open-net farms removed from B.C.’s waters. “We got them removed and two years later we went from 200 fish in the river to where we have several thousand to date. In our mind and knowledge that is a really clear indicator.”

Fisheries and Oceans Canada spokeswoman Lara Sloan said departmental observations indicated big returns of sockeye to the Skeena River.

“Test fisheries currently indicate that Skeena sockeye returns are tracking at the upper end of the forecast, with an in-season estimate of approximately four million sockeye,” said Sloan in a statement. “Sockeye populations returning to a number of areas in British Columbia, Washington and Alaska are returning better than forecast in 2022.”

The five-year average return of sockeye to the Skeena is 1.4 million and the 10-year average is 1.7 million, Sloan said.

Dudoward said the Skeena sockeye season ended this week, but it could have gone on longer.

“We should be fishing until the end of August when the sockeye stop running,” he said. “There’s plenty of them to take.”

But Sloan said the Fisheries Department was being careful about salmon stocks.

“For 2022, the department is taking a more precautionary approach toward managing impacts of commercial fisheries on stocks of conservation concern including smaller wild sockeye populations, chum and steelhead returning to the Skeena River,” she said.

The Fisheries Department also expects a large sockeye run to the Fraser River this summer, but returns of chinook, coho and chum to northern and Central Coast rivers and streams are expected to be low.

“The forecast range for Fraser River sockeye in 2022 is 2.3 million to 41.7 million, with a median forecast of 9.7 million,” said Sloan. “The median forecast means there is a 50 per cent chance returns will come in below that level.”

That is well above the estimated 2.5 million sockeye returns in 2021, according to Fisheries and Oceans Canada data.

The strong returns come amid debate over the future of open-net salmon farming in B.C. waters.

In 2018, the B.C. government, First Nations and the salmon farming industry reached an agreement to phase out 17 open-net farms in the Broughton Archipelago between 2019 and 2023.

The agreement was negotiated to establish a farm-free migration corridor to help reduce harm to wild salmon.

In June, federal Fisheries Minister Joyce Murray said the government will consult with First Nations communities and salmon farm operators in the Discovery Islands, near Campbell River on Vancouver Island, about the future of open-net farming in the area.

A final decision on the future of the farms is expected in January 2023, the minister said.

“That is such a key migratory route of all Fraser River salmon, in particular coho and chinook,” Chamberlin said. “If we are going to see Fraser runs return, we need to see removal of impediments.”

This report by The Canadian Press was first published Aug. 10, 2022.

 

Dirk Meissner, The Canadian Press

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Montreal-based WSP Global to buy U.K. environmental consulting company in third takeover in just three months – The Globe and Mail

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Canadian engineering giant WSP Global Inc. WSP-T is buying British environmental consulting firm RPS Group Plc in a deal worth almost a billion dollars, its third major takeover in just three months.

Montreal-based WSP said it struck a deal Monday to acquire RPS for £2.06 per share in cash for a total enterprise value of £625-million, or $975-million. It is paying 15 times RPS’s adjusted earnings before interest, taxes, depreciation and amortization for the 12 months ended June 30.

“RPS is of utmost value to WSP for its sustainability focus, global presence, expertise and talent,” WSP chief executive Alexandre L’Heureux told analysts on a conference call after markets closed. The takeover of RPS’s 5,000 employees brings additional scale to WSP and advances its efforts to expand its front-end consulting work, he said.

Demand for environmental engineering and consulting services is growing as private-sector companies and governments seek advice on things ranging from climate-change risks to waste management. WSP is beefing up its capabilities in the space as part of a wider growth effort.

This is the company’s third major takeover in as many months. In June, it said it had struck a definitive agreement to acquire a business known as Environment & Infrastructure (E&I) from Aberdeen, Scotland-based Wood for US$1.8-billion, adding another 6,000 employees to its payroll. Earlier this month, WSP said it would buy Capita Plc’s Capita REI and GL Hearn businesses in the U.K. for £60-million in a smaller deal that adds skill in real estate planning.

Once a boutique engineering company, WSP has ballooned in recent years to become a major player in global design consultancy and project management, with a current market capitalization topping $18-billion. Mr. L’Heureux wants to expand the company further. He outlined a three-year strategic plan this March that aims to boost net revenues 30 per cent to well over $10-billion a year and increase adjusted net earnings per share by 50 per cent by 2024.

WSP said it secured a new bank credit facility worth £600-million (about $935-million), including commitments for the full amount of the RPS purchase price, in order to meet British takeover regulations. But it intends to use the proceeds from share sales to fund the takeover.

The company said it will sell $400-million worth of equity in a bought deal with a syndicate of underwriters led by CIBC Capital Markets, National Bank Financial and RBC Capital Markets. It will raise another $400-million in a private placement with three existing WSP shareholders: Singapore sovereign wealth fund GIC, Canadian pension fund manager Caisse de dépôt et placement du Québec and the Canadian Pension Plan Investment Board.

London Stock Exchange-listed RPS generates about two-thirds of its revenue from environmental work and water services and has longstanding relationships with major water utilities in the U.K. and Ireland, Mr. L’Heureux said. It has also developed a deep expertise in oceanic science, which it uses to support offshore wind energy players, he added.

RPS’s board intends to recommend the deal, WSP said. The Canadian company said it has the backing of directors and other shareholders holding about 18 per cent of RPS stock.

WSP is one of the most active companies in Canadian infrastructure megaprojects – involved in the development of 18 of the 20 biggest projects currently under way, according to trade publication ReNew Canada. This latest takeover would bring its total employee count to 70,000 and boost revenue to $10-billion a year on a pro-forma basis.

The engineering firm’s recent contracts illustrate the kind of work it is now bidding on as it tries to reshape itself as one of the world’s top companies with environmental expertise. In Canada, it won a mandate from pension fund PSP Investments to conduct a detailed climate analysis of more than three million hectares of farmland and timberland in its Global Natural Resources Portfolio.

In the United States, WSP was awarded a contract for engineering, procurement and construction management for the underground storage of the Aces Delta project, the largest green hydrogen production and storage facility ever built. WSP says the facility will help decarbonize the Western U.S. power grid by providing seasonal clean energy storage capabilities.

WSP shares rose 0.8 per cent in Monday trading on the Toronto Stock Exchange, closing at $157.58. The stock is down 16 per cent since hitting an all-time high of $187.94 last November.

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Fairfax offering to buy chain that owns Swiss Chalet, Harvey's and The Keg for $1.2B – CBC News

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Fairfax Financial Holdings Ltd. has proposed taking Recipe Unlimited Corp. private in the latest phase for the almost 140-year-old restaurant company.

The deal announced by Recipe Unlimited Tuesday puts a $1.2 billion value on Canada’s oldest and largest full-service restaurant chain, which counts Swiss Chalet, Harvey’s and The Keg among its roughly two-dozen brands.

Fairfax is already the controlling shareholder of Recipe Unlimited, owning 38.5 per cent of the equity interest as of the end of last year for about 61 per cent of the voting rights.

The other major shareholder is Cara Holdings Ltd., the holding company of the Phelan family, which would continue as an investor in the company once it goes private.

Recipe Unlimited first went public in 1968, then known as CARA for the first two letters of Canadian Railway, which links back to the company’s original founding in 1883 as the Canada Railway News Co. that catered to railway travellers.

Cara Holdings Ltd. took the company private again in 2004 and in 2013 Fairfax made a deal to bring several restaurants including East Side Mario’s and Casey’s into the company’s portfolio before the company relisted publicly in 2015.

The deal announced Tuesday would see a group of Fairfax affiliates acquire all outstanding shares, except for some shares held by Cara Holdings, at $20.73 in cash.

The offer price represents a 53.4 per cent premium to Recipe Unlimited’s closing price on Aug. 8, according to a company statement. Recipe, however, was trading at about $21 a share as recently as last November before it started declining along with the wider market, and traded above $36 a share in its first year of returning to the market in 2015.

The deal requires the approval of most of the minority shareholders and Recipe Unlimited says its board intends to recommend that shareholders vote in favour of the proposed transaction at a special meeting of shareholders to be held on the matter.

The deal comes only a few days after Fairfax said it and partners were also taking private U.K.-based Atlas Corp., which owns the Seaspan shipping company and APR Energy.

The Atlas deal has Fairfax and partners buying shares at $14.45, which represents a 32.1 per cent premium over the 30 day average closing price on the New York Stock Exchange, but is in line with where the company was trading in late March.

Recipe shares have been under pressure during the pandemic as it had been forced to close in-restaurant dining at many locations.

The company has seen sales rebound lately as restrictions ease, reporting last week that its system sales were up 55 per cent to $873 million. Recipe Unlimited had 1,223 restaurants at the end of the quarter, down from 1,330 last year.

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