Cold beverages helped drive growth at Tim Hortons in the fourth quarter, even as colder-than-usual December weather gripped parts of Canada.

The coffee chain’s parent company, Miami-based Restaurant Brands International Inc. (QSR.TO)(QSR), which also operates Burger King, Popeyes and Firehouse Subs, said cold beverage sales rose 8.6 per cent in the quarter ended Dec. 31, reaching nearly 27 per cent of total beverage sales, the largest portion ever recorded in a fourth quarter.

Tim Hortons customers were largely drawn to iced espresso-based beverages, including iced chai lattes and protein lattes, said RBI CEO Joshua Kobza, on Thursday morning’s earnings call.

The strength in protein lattes reflects a broader shift in consumer preferences. According to Square data, sales of protein-related items at Canadian coffee shops rose 35 per cent in the first three weeks of January compared with the same period last year.

More broadly, Kobza said the company is investing in its iced espresso platform.

“We also began rolling out our new espresso machine to support improved quality and consistency for this growing category,” he said.

Tim Hortons accounts for roughly 42 per cent of RBI’s profit. Tim Hortons reported total revenue of US$1.13 billion, up from US$1.02 billion, while adjusted operating income totalled US$274 million, up from US$266 million.

The company also reported system-wide sales of US$1.91 billion in the fourth quarter, up from US$1.86 billion a year earlier, for growth of 2.7 per cent, down from 3.2 per cent in the fourth quarter of 2024.

Same-store sales rose 2.9 per cent, up from 2.2 per cent a year earlier, though the result missed analyst expectations.

Executive chair Patrick Doyle said 2025 was a demanding year for restaurant operators.

“The consumer was under pressure. Costs were elevated, and macro and geopolitical uncertainty weighed on confidence across many of our markets,” Doyle said.

Despite rising coffee prices and tariff headwinds, the average Tim Hortons store in Canada generated about $295,000 Canadian in annual store-level operating profit before interest, taxes, depreciation and amortization, he said.

Breakfast food sales grew by 3.5 per cent, supported by its scrambled eggs and farmer’s wrap, while baked goods rose by two per cent.

The company’s afternoon market “grew more modestly,” Kobza said, noting that it’s considered a long-term opportunity, which will take several years to build. In 2026, Tim Hortons will focus on refining its p.m. menu and operations.

At the parent company level, RBI shares fell by more than 5 per cent after the release of its financial results. As of 10:40 a.m. ET, RBI’s shares were down 6.11 per cent at $90.41 on the Toronto Stock Exchange.

RBI reported fourth-quarter revenue of US$2.47 billion, up from US$2.30 billion a year earlier, while system-wide sales rose to US$12.13 billion from US$11.28 billion. Comparable sales increased 3.1 per cent in the quarter.

Profit attributable to common shareholders fell to US$113 million, or US$0.34 per diluted share, compared with US$259 million, or US$0.79 per diluted share, in the fourth quarter of 2024. Yahoo Finance