The Financial Post reports in its Wednesday edition that commuters may have returned to Tim Hortons, but that success might not be trickling down to the franchisees. The Post's Jake Edmiston writes that Restaurant Brands International exceeded forecasts in the first quarter, increasing its profits by 15 per cent to $340-million (U.S.) on sales of $9.8-billion (U.S.) across its fast-food brands -- Tim Hortons, Burger King, Popeyes Louisiana Kitchen and Firehouse Subs. RBI executive chairman Patrick Doyle said the quarter was "a decisive step forward" in addressing his franchisees' frustrations around declining profitability at their stores amid the worst inflation in four decades. "We have a lot more to do, most importantly continuing to further improve franchisee profitability," Mr. Doyle told analysts on a call on May 2. However, Dave Lush at the Alliance of Canadian Franchisees, said his Tims members have not seen a difference yet. "Nothing really has changed," he said. "The problem remains exactly as it was." Profits have become a sore subject this year for Tim Hortons franchisees, who have complained that the cost of the ingredients they buy from RBI have outpaced menu price increases, narrowing their margins.
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