Description: The folks at Burger King and Popeye’s are happy, but over at that other RBI food company, Tim Horton’s, profits this quarter are down. The RBI company CEO, Jose Cil, said “Our results at Tim Hortons were not where we want them to be.” There is some speculation that Tim’s new reward program may be lowering the value of the average purchase.

Date:  October 28, 2019

Source:  financialpost.com

Link: https://business.financialpost.com/news/retail-marketing/update-1-restaurant-brands-sales-miss-estimates-as-tim-hortons-disappoints

Discussion points: 

 1) Have you joined the Tim Horton’s reward program, taking advantage of every eighth coffee for free?

2) Why do you think Tim Horton’s may have launched the new rewards program?

3) Go to pages 485-486 of Wiley’s Financial Accounting: Tools for Business Decision-Making. What is the lifespan of a Tim Horton’s franchise? What does this mean for amortization of this intangible asset?