|Rising commodity prices and a merger with Burger King have Tim Hortons raising prices for coffee and breakfast sandwiches at its Canada locations.|
TORONTO – Canadians can expect to pay more on their morning run to Tim Hortons.
The restaurant chain announced plans to raise the prices of its breakfast sandwiches and coffee. The move comes as the company tries to offset rising prices for meat and coffee beans, in addition to expenses related to its merger with Miami-based Burger King Worldwide. Customers can expect to pay at least 10 cents more for coffee, although prices will vary by region. Meanwhile, prices for breakfast sandwiches will be 10 cents higher in all provinces except Ontario.
Also driving prices higher is the Tim Hortons merger with Burger King. Cynthia Devine, CFO, explained in a Nov. 5 conference call with investors that Tim Hortons faces C$27.3 million ($24.2 million) charge related to its merger with Burger King. She said the expense had a direct impact on the company's operating income and net income because Tim Hortons can't realize the benefit of the tax deduction associated with these costs. The deal requires regulatory and shareholder approvals.