Noah Zivitz

Managing Editor, BNN Bloomberg

Archive

How can Restaurant Brands International fix Tim Hortons? That’s the biggest question of the morning after the fast-food conglomerate reported same-store sales at the coffee-and-doughnut chain sank 4.3 per cent in the fourth quarter; the sales erosion was even worse in Canada, with stores open at least a year in this country sliding 4.6 per cent. “It is clear that we have a large opportunity to refocus on our founding values [at Tim Hortons] and what has made us famous with our guests over the years,” is how RBI CEO Jose Cil described the situation. After years of bad PR and heightened competition, how can Tim Hortons rebuild its appeal? We’ll hunt for answers. It was an otherwise impressive quarter for RBI, with quarter earnings rising above estimates and the dividend getting bumped up a couple cents to $0.52/share. (Cil gave credit to Popeyes’ “game changer” chicken sandwich that helped lift PLK’s same-stores 34.4 per cent).

PROTESTS SNARL RAIL TRAFFIC

Protests related to the Coastal GasLink pipeline continue to impede rail traffic in the Toronto-Montreal corridor, with dozens more Via Rail trains cancelled today due to the blockade of a CN line in Belleville, Ont. A similar, albeit short-lived, protest interrupted traffic on a CP line in Toronto on Saturday. The trigger for these demonstrations was the RCMP’s recent enforcement of an injunction meant to allow GasLink’s construction. We're looking forward to Tara Weber’s conversation with Finance Minister Bill Morneau about the future of Trans Mountain later today in Calgary.

BIG WEEK FOR BOMBARDIER

With quarterly results looming on Thursday, it wouldn’t come as a total surprise if the debt-laden plane and train maker uses the occasion as an opportunity to make a significant announcement, particularly with reports that it’s in deal talks tied to both of its major operating divisions. We’ll be ready.

AT THE RISK OF DISTRACTING…

From “talk-a-holics” to trendy office designs, a new survey shows multiple factors are at play in sapping productivity. According to a survey released today, Canadians are losing up to two hours of productivity every day because of distractions at work. Arguably the best conversation material of the day 

OTHER NOTABLE STORIES

-Western Forest Products is the top gainer on the TSX after announcing a tentative agreement with the USW to end the nearly eight-month-old strike on Vancouver Island.

-SNC-Lavalin has a new chief financial officer. It announced the appointment of former Centrica Plc executive Jeff Bell this morning.

-OPEC+ ministers reportedly will not proceed with an emergency meeting to assess the impact of the coronavirus outbreak. While there’s no apparent panic among alliance members, the respiratory illness is now being blamed for at least 910 deaths amid almost 41,000 confirmed cases globally.

-A new report from insolvency experts Hoyes Michalos shows even “more prosperous households are now reaching the breaking point” as the average income for Ontarians filing bankruptcy or consumer proposals last year rose 5.5 per cent to $3,162 per month after-tax.

-Just Energy reported a 10 per cent drop in fiscal third-quarter sales this morning, with the company attributing that to its focus on quality over quantity of customers. The energy retailer also cut its EBITDA and free cash flow forecasts and said its long-standing strategic review remains open.

-Intertape Polymer today announced it’s buying rival packaging firm Nortech for US$36.5 million.

NOTABLE RELEASES/EVENTS

-Notable earnings: TMX Group, Restaurant Brands International, PrairieSky Royalty, Just Energy

-Notable data: Canadian housing starts and building permits

-9:30 a.m. ET: Finance Minister Bill Morneau addresses Economic Club in Calgary

Every morning BNN Bloomberg's Managing Editor Noah Zivitz writes a ‘chase note’ to BNN Bloomberg's editorial staff listing the stories and events that will be in the spotlight that day. Have it delivered to your inbox before the trading day begins by heading to www.bnnbloomberg.ca/subscribe.