Tim Hortons says president Alex Macedo will step down in March 2020

on Dec 28, 2019
Updated: Mar 11, 2020
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  • Tim Hortons announces the departure of its president Alex Macedo in March 2020.
  • Parent organization, Restaurant Brands International, announces Axel Schwan as the new president.
  • Tim Hortons weighed heavily on Restaurant Brands' quarterly performance in September.
  • Restaurant Brands International has remained challenged in the stock market in 2019's second half.

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The
fast-food restaurant chain, Tim Hortons, announced on Friday that its president,
Alex Macedo, will be departing in the upcoming months. Macedo has served the
Oakville headquartered coffee and doughnuts company for two years as the
president.

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Tim
Hortons’ parent organization, Restaurant Brands International Inc., commented
in a regulatory filing that the president will step down in March 2020. The filing
also highlighted that following his resignation, Macedo will still remain eligible
for a severance package.

Axel
Schwan Will Be Taking Over As The President Of The Latin America Region

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In
an announcement on Friday, Restaurant Brands also stated that Axel Schwan will
be taking over as the president of the Latin America region. Schwan was also handed
over the responsibility for Canadian
and the United States stores earlier
in October 2019. The rest of the international operations, the parent
organization declared, will be under the authority of its current global
leadership team.

Tim
Hortons has recently been facing multiple challenges that saw a sharp decline in
its regional sales in Canada and the U.S. The company had launched new lunch offerings
including coffee earlier this year. It also partnered with Beyond Meat Inc. to
roll out breakfast sandwiches that used plant-based sausages. Although the
offering was confined to a few selected cities in Canada, it still failed to
improve the regional sales figures for the company.  

In
September 2019, Restaurant Brands announced the quarterly performance results
that showed its fast-food chains like Popeyes and Burger King to have reported
upbeat earnings in the quarter while Tim Hortons’ performance weighed heavily
on the parent organization in the quarter ending in September. Tim Hortons’
losses were also seen considerably sharper as compared to the gains recorded in
other subsidiaries.

Restaurant
Brands International’s Performance In The Stock Market In 2019

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Restaurant
Brands International performed fairly upbeat
in the stock market in 2019
during the first half. The stock opened at around $70 (Canadian) per share in
January and was seen trading as high as $104 (Canadian) in August. The record
high was followed by a consistent drop in share prices that saw it falling back
to the $84 (Canadian) level where the stock is currently trading.

Restaurant
Brands currently has a market cap of $39.04 billion and a price to earnings
ratio of 25.94. With Axel Schwan taking over the leading position in Tim
Hortons, the company expects to revive sales and generate greater profits in the
upcoming fiscal year.

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