Tim Hortons
Food & Beverage · Quick-Service Restaurants
- Active units
- 669
- Avg unit volume
- $1.3M
Franchised, year-end 2025
About Tim Hortons
Tim Hortons is a Canadian multinational fast-food restaurant chain known for its coffee and donuts. It was founded by Tim Horton, a professional ice hockey player, and Jim Charade in 1964 in Hamilton, Ontario. The chain's name was derived from Tim Horton's reputation as a tough defender in hockey. Initially, the restaurant primarily focused on offering coffee and donuts to customers. However, over the years, its menu has expanded to include sandwiches, soups, wraps, and other baked goods. The headquarters of Tim Hortons is located in Toronto, Ontario, Canada. The company operates as a subsidiary of Restaurant Brands International (RBI), which also owns Burger King and Popeyes Louisiana Kitchen. On a global scale, Tim Hortons has a significant presence, with over 4,900 locations in Canada, the United States, and other countries. The chain has expanded its operations through various joint ventures and partnerships. Notably, Tim Hortons has formed partnerships with Cold Stone Creamery, Cinnabon, and TDL Group Ltd to co-brand certain locations and offer additional products. In terms of market position, Tim Hortons is a dominant force in Canada and holds a strong position in the global fast-food industry. It is the largest quick-service restaurant chain in Canada and consistently ranks among the top coffee chains in North America. Its direct competitors include Starbucks and Dunkin', but Tim Hortons has managed to carve out a unique niche with its Canadian identity and focus on affordable, quality food and beverages. In recent years, Tim Hortons has faced some challenges regarding its market share and customer satisfaction. The company has made efforts to address these issues by launching new marketing campaigns, introducing new menu items, and revamping its restaurants' infrastructure and design. As of the latest updates, Tim Hortons continues to expand its global footprint, opening new locations in existing and new markets. It remains committed to its core offerings of coffee and baked goods, while also diversifying its menu to cater to evolving consumer preferences. The brand's continued growth and efforts to improve customer experience reaffirm its place as a beloved Canadian institution in the global fast-food industry.
Key terms
- Footprint
1,000 – 2,300 sq ft
Brand Percentile Rankings
Rankings compare brands in the same operating year. Fee and investment figures come from the FDD (2026 filing); filings on file: 2025, 2026.
Growth
- Total locations—
Franchised units open at year-end
- New openings—
Gross new units opened during the calendar year
- 1-year unit growth rate—
Net unit growth versus prior year
- 3-year unit CAGR—
Compound annual growth rate of unit count over the trailing 3 years
- Unit growth ratio—
Cumulative opens / closures through year-end
Unit economics
- Annual unit volume (Median)$1.3M
Computed as 12 x average monthly Gross Sales for 2025 Shops reporting at least 10 months.
- Annual unit volume (25th percentile)—
Per FDD Item 19 disclosure
- Annual unit volume (75th percentile)—
Per FDD Item 19 disclosure
- 1-year Median AUV growth rate2.0%
Year-over-year change in median AUV
- Store-level EBITDA Margin—
Median unit-level EBITDA / AUV
Investment profile
- Estimated initial investment$1.7M
Midpoint of estimated initial investment range
↓ Lower is better - Time to open5 months
Midpoint of average time from agreement to opening
↓ Lower is better - Royalty rate—
Percent of net sales paid to the franchisor
- Sales-to-investment ratio0.7×
Median AUV / estimated initial investment midpoint
- Cash-on-cash returns—
Median unit-level EBITDA / estimated initial investment midpoint. Steady-state estimate; year 1 returns will be lower as the unit ramps to median volumes.
Franchisee healthLocked
- Unit closure ratio
- Transfer vs. closure ratio
- Percent multi-unit franchisees
- Litigation rate
- EBITDA multiple on sales & transfers
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Sources
Financial and operating figures are sourced from the brand's Franchise Disclosure Documents. Brand percentile rankings are based on comparisons to other brands that include the same metrics in their Franchise Disclosure Documents.