OAKVILLE, Ont. - Tim Hortons (TSX:THI) 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.