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