Tim Hortons profit slides 22% on higher costs

New York City Tim Hortons said Friday that its profit fell 22% in the third quarter as the restaurant operator coped with higher food costs and expenses tied to the reorganization of its Canadian business.

The company, headquartered in Canada with business both there and in the United States, reported income of 61.2 million Canadian dollars ($56.6 million), down from 78.8 million Canadian dollars ($72.9 million) earned in the same quarter last year.

Revenue grew nearly 11% to 563.6 million Canadian dollars ($521.2 million), with large gains in franchise fees.

Same-store sales grew 3.1% in Canada and 4.3% in the United States.

Costs of sales grew nearly 12% for the quarter, largely because of higher commodity costs for foods that trickled down to the company. The company's operating and administrative costs also grew.