Tim Hortons says its outlook for the rest of the year is better than previously expected as sales momentum picks up at its stores.

The restaurant chain, which reported steady second-quarter profits, told investors that it anticipates earnings per share to be near the higher end — or slightly above — its current target range of $3.17 to $3.27 earnings per share for the year.

The more optimistic outlook came as quarterly profits were flat at $123.8 million versus $123.7 million a year earlier for the three months ended June 29.

On a per-share basis, the results grew to 92 cents from 81 cents in the comparable period, benefiting from a share repurchase program announced last summer.

Revenues increased 9.3 per cent to $874.3 million versus $800.1 million.

Tim Hortons says customers spent more money on menu items, helping same-store sales grow 2.6 per cent in Canada and 5.6 per cent in the United States.