Tim Hortons' success: It's not just the coffee

Tim Hortons (THI), the Canadian coffee giant that recently opened stores in New York City, reported profit rose 3.7 percent in the second quarter, despite aggressive promotions from competitors, especially offers of free morning coffee from McDonald's (MCD) in Canada.

But the biggest fast-food chain couldn't dent Canadians' love for their Timmies, and Tim Hortons revenue grew 8.9 percent in the quarter as a result of its own menu and marketing initiatives.