We have identified and are focused on a number of priorities to build on our strengths and market leadership. For example, there are parts of Canada where we are under-penetrated and our guests lack convenient access to our brand.

Our popularity can result in long lineups at peak periods. We are working on initiatives to increase throughput and efficiency.

We already enjoy a tremendous amount of loyalty from our guests, but we believe we can win a greater percentage of their restaurant spending. We continue to grow our market share in the lunch and evening snack dayparts, bolstering our traditional strength in breakfast and morning snack dayparts.

Our strategies for strengthening Tim Hortons in Canada include:

Development. We see an opportunity to grow to at least 4,000 restaurants in Canada featuring contemporary designs. Expansion will be focused in Quebec, Western Canada, Ontario and major urban areas. We are targeting 160 to 180 new restaurants in 2013.

Renovations. Together with our franchisees, we invest in regular upgrades to our restaurants so that they stay fresh and exhibit contemporary design elements. In 2013, we intend to renovate approximately 300 restaurants in Canada, focusing on significantly improving the guest experience with bold new designs encompassing seating, lighting, interior and exterior décor, and overall ambience.

Reimaging. In total, we expect over 450 restaurants to be built or renovated with our new design treatments in 2013.

Innovation. We will continue to add new menu items to broaden our appeal to guests and drive traffic into our restaurants.

Drive-thru enhancements. We are improving capacity by implementing a combination of order station relocations, double-order stations, and double-lane drive-thrus. We are also continuing the rollout of new exterior menu boards. We plan to implement drivethru initiatives at more than 1,000 locations in Canada.

Guest experience. We seek to roll out new initiatives to improve the experience of our guests, including such recent examples as dynamic digital menu boards, free Wi-Fi and new payment options.