The sudden departure of Tim Hortons Inc. president and chief executive Donald Schroeder may signal a pull back in the company's ambitious U.S. expansion strategy, a retail analyst said. Tim Hortons has nearly 600 restaurants in the U.S. and has said it will open about 300 new outlets by 2013, primarily in its existing markets of Michigan, New York and Ohio. Late last year, the restaurant chain closed 36 restaurants and 18 kiosks, primarily in New England.
"Everything could be on the table," said Kenric Tyghe of Raymond James. He said the coffee and doughnut chain's core business in Canada has suffered as the franchise company focused on a U.S. expansion that Tyghe called "too big and too audacious." He added the Oakville-based chain has faced challenges in establishing its brand in U.S. cities as it competes with established restaurants such as Dunkin' Donuts and Starbucks in a difficult economic climate.
But Brain Yarbrough, retail analyst at Edward Jones in St. Louis, MO, noted the U.S. push was approved by Tim Hortons under executive chairman Paul House, who has previously held the CEO post. House takes on the role of interim CEO until a replacement for the 65-year-old Schroeder can be found.
Tyghe said the company plans to invest heavily in promoting its brand in the U.S.
from Western Investor July 2011
