Tim Hortons said it made money off of cold drinks towards the end of 2024, which entails winters in countries in the northern hemisphere. The Canadian company’s parent firm Restaurant Brands International (RBI) made the revelation during the full-year earnings call on Wednesday.
Speaking during the call, CEO Joshua Kobza said some of the products of the company performed below average because of the weather.
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“We had a little bit warmer weather in the quarter and that tends to drive more cold beverage,” he said, adding that warmer-than-average temperatures in the October-December 2024 quarter led to an over 6% growth in cold beverages.
He also pointed out that due to the weather, the company’s sales of hot beverages saw a decline. Additionally, the sales of baked goods, which are usually purchased along with hot beverages, also took a hit.
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It’s getting warmer!
Canada, partly due to its geographic location, usually experiences sub-zero temperatures over the last months of each year. However, likely due to climate change and other weather phenomenon like El Nino, temperatures in the country did not fall as much as they usually do.
According to the Government of Canada, December-February period of 2023-2024 was the warmest winter the country has seen since 1948. Additionally, the World Meteorological Organization also confirmed that 2024 was the warmest year on record.
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According to the international body, temperatures over the year were about 1.55°C above the pre-industrial level, indicating a worrying trend of global warming and industrial pollution.
Tim Hortons in numbers!
According to the company’s earnings release, it saw a 5.4% rise in its system-wide sales in 2024, which is a tremendous dip from the 12.2% growth the company saw in 2023. Tim Hortons also reported a 3.4% YoY rise in net restaurant growth last year, down from 3.9% in 2023.
The company has over 4,000 outlets in Canada, stores in the US and Europe and a growing presence in Asia.
