0943 ET - Coffee prices are all-time highs, but the buying strategy at Tim Hortons should temper the brunt of the increase on its margins. On an analyst call, executives say that in the Tim Hortons commodity basket, coffee is only about 15% of the total, which they consider relatively small. Still, the executives say they buy coffee six-to-18 months in advance as part of their forward buying strategy "which allows us to smooth out volatility as we pass those costs on to franchisees." Because of this forward visibility, "we still feel good that 2025 supply chain margin will be at around 19%, compared with 19.5% in 2024." (adriano.marchese@wsj.com)
(END) Dow Jones Newswires
February 12, 2025 09:44 ET (14:44 GMT)
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