Canadian Stocks Today: Cineplex and Sun Life Financial

RBI-owned Tim Hortons watches consumer demand as U.S. tariff uncertainty lingers

Tim Hortons, part of Restaurant Brands International (RBI), is closely monitoring the potential impact of proposed U.S. tariffs on Canadian goods. Axel Schwan, president of Tim Hortons’ Canadian and U.S. operations, says the company is exploring every way to limit cost increases for consumers as tariff uncertainty persists.

With President Trump having threatened tariffs on Canadian and Mexican imports, businesses across sectors are preparing for possible disruption. While the biggest effects would likely hit industries reliant on steel and aluminum, food and restaurant supply chains could also be affected. Schwan emphasized that Tim Hortons sources the majority of its ingredients from Canada—egg wraps use 100% Canadian eggs and its coffee is roasted in Ancaster, Ontario—giving the brand a resilient starting point should tariffs be implemented.

Tim Hortons recently leaned into its Canadian roots in marketing, including a Super Bowl spot that highlighted the brand’s national identity. Despite questions from some commentators about the parent company’s ownership, Schwan pointed to research showing Tim Hortons remains perceived as a strongly Canadian brand by many customers.

RBI, which also owns Burger King, Popeyes and Firehouse Subs, reported fourth-quarter net income of $361 million, or $0.79 per share, for the quarter ended Dec. 31. That compares with $726 million, or $1.60 per diluted share, a year earlier. On an adjusted basis, RBI earned $0.81 per diluted share, up from $0.75 the previous year. Revenue rose to $2.30 billion from $1.82 billion, and system-wide sales increased to $11.28 billion from $10.89 billion. Overall comparable sales rose 2.5%.

RBI highlighted Tim Hortons’ 15th consecutive quarter of positive traffic growth. Management credited morning performance but also pointed to efforts to extend daypart sales through items like loaded bowls, flatbread pizzas and expanded cold and espresso-based beverage options. Investments in new espresso machines at 100 test locations and continued drive-thru speed improvements—average weekday window times now average 28 seconds—are intended to boost throughput and sales. RBI estimates that each one-second reduction in drive-thru time can add roughly $30,000 in annual sales per restaurant.

---

Return to table of contents.

L.A. wildfires and U.S. tariff threats unlikely to dent Cineplex’s momentum

Cineplex Inc.’s CEO Ellis Jacob says recent California wildfires and the threat of U.S. tariffs on Canadian goods are not expected to materially harm the cinema operator’s performance. Jacob noted that most film production is distributed globally and that the industry recovered rapidly after last year’s strikes by writers and actors.

Strong releases such as “Wicked,” “Gladiator II” and “Moana 2” helped Cineplex deliver a profitable fourth quarter. For the period ended Dec. 31, Cineplex reported earnings of $3.3 million, or $0.05 per share, compared with a $9.0 million loss a year earlier. Revenue grew to $362.7 million from $315.1 million, and attendance rose to 11.1 million from 9.6 million. Box office revenue per patron increased to $13.26 and concession revenue per patron rose to $9.41.

Chief Financial Officer Gord Nelson noted that roughly 99% of Cineplex’s revenue is generated in Canada, and most major expense categories—film rentals, labor and occupancy—are not directly exposed to cross-border tariffs. The company will, however, monitor sourcing and potential cost pressures for concession items that could be affected.

Jacob pointed out that cinema demand can be resilient during tougher economic periods because moviegoing is a relatively affordable leisure activity. He also highlighted that film production is increasingly spread across global locations, limiting the potential impact of localized disruptions like California wildfires.

---

Return to table of contents.

McDonald’s global sales improvements offset U.S. weakness in Q4

McDonald’s reported that improving international sales helped offset weakness in the U.S. during the fourth quarter. U.S. same-store sales fell 1.4% as the company continues to recover from an E. coli outbreak linked to raw onions in October that affected Quarter Pounder sales. McDonald’s said it is focused on reengaging lower-income customers with strong value programs and plans to introduce menu items to drive traffic later in the year.

Management highlighted progress from a widely promoted $5 value meal that reignited traffic in 2024 and has been extended. The company also plans product rollouts such as a returning snack wrap and a new chicken strip offering. McDonald’s is exploring beverage demand learned from its CosMc’s beverage-focused tests and considering how to incorporate that demand into its existing footprint.

Internationally, company-operated markets showed small gains with notable strength in Germany and Italy. Licensed markets overseas were a bright spot, with same-store sales up 4.1%, supported by growth in regions such as the Middle East and Japan. Overall global comparable sales rose slightly, beating expectations for a modest decline.

McDonald’s fourth-quarter net income was $2.01 billion, down 1% year over year. Adjusted earnings were $2.83 per share, slightly below analyst forecasts. Shares reacted positively in early trading following the results.

---

Return to table of contents.

Canadian Tire posts higher Q4 profit and modest revenue gain

Canadian Tire reported a stronger fourth quarter, with net income attributable to shareholders of $411.5 million, or $7.37 per diluted share, compared with $172.5 million, or $3.09 per diluted share, a year earlier. Revenue increased to $4.51 billion as consolidated retail sales rose 1.1%.

Comparable sales improved at core banners: Canadian Tire stores were up 1.1%, SportChek rose 0.4% and Mark’s increased 1.8%. Normalized earnings climbed to $4.07 per diluted share from $3.38, reflecting underlying operating strength across the retail portfolio.

---

Sun Life Financial posts Q4 earnings affected by market conditions and an impairment

Sun Life Financial reported fourth-quarter net earnings of $237 million, down from $512 million a year earlier. Diluted earnings per share were $0.41, compared with $1.28 in the prior year’s quarter. Underlying net income totaled $965 million, slightly below the prior-year comparable figure of $983 million.

President and CEO Kevin Strain said the results were affected by market conditions and an impairment related to the company’s Vietnam business. Despite those headwinds, Sun Life reported strong underlying net income in its Asia and Canada operations, underscoring ongoing business resilience in key regions.

Read more stock market news:

• Earnings reports: Eli Lilly, BCE, Suncor and more
• Why is the SEC suing Elon Musk?
• Can Santander take on Canada’s Big Six?
• Canadian bank earnings reports