Timmy’s TKO

March 1, 2006 by Natalia Williams

Like Telus, Wendy’s International – owners of iconic Canadian brand Tim Hortons – has moved into the top 10 this year. ‘[They're] obviously trying to be pretty aggressive,’ says retail analyst Wendy Evans of Toronto-based Evans and Company of the ad-spend jump. She says that in light of Tim Hortons’ pending IPO, its spending increase is likely an effort to show value and build buzz behind the brand.

Wendy’s International declined to comment. But the numbers indicate the Tim Hortons brand continues to be profitable for its parent company while the Wendy’s Old Fashioned Hamburgers chain is struggling in an increasingly competitive fast food market. Tim Hortons’ same-store sales in Canada increased 5.2% during 2005, according to recent results. In the U.S. it was up 7%. In contrast, same-store sales were down 3.1% for the Wendy’s U.S. franchise.

Back in November, Tim’s EVP Bill Moir told us that part of the brand’s strategy was constant, new product innovation and advertising on a four-week cycle. ‘It helps keep the brand top of mind,’ he said.