TH International Earnings Call Transcripts
Fiscal Year 2025
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System sales grew 7.6% year-over-year to RMB 1.57 billion in 2025, with strong franchise expansion and improved margins in Tier 1 cities. Despite revenue declines from store closures, gross margin and EBITDA margin improved, and at least 100 net new stores are targeted for 2026.
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System sales grew 12.8% year-over-year in Q3 2025, with strong gains in food and delivery revenues, franchise expansion, and loyalty membership. Margins were pressured by delivery mix and competition, but new financing improved liquidity and supports future growth.
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Q2 saw record food revenue contribution, strong franchise growth, and a return to positive adjusted EBITDA. Despite a decline in company-owned store sales, franchised and retail segments surged, and digital orders hit a new high. Positive same-store sales and further expansion are expected.
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Q1 2025 saw system sales rise 3.5% year-over-year, driven by new lunch offerings and franchise growth, despite a decline in company-owned store revenue. Margins and profitability improved, with strong digital engagement and positive recent same-store sales trends.
Fiscal Year 2024
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Consecutive adjusted corporate EBITDA profitability was achieved in Q3 2024, with record store contribution margins and strong cost reductions. Loyalty membership and digital engagement surged, while capital-efficient growth and sub-franchisee expansion remain key priorities.
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Achieved first-ever positive Adjusted Corporate EBITDA and record 10.3% Store EBITDA margin in Q2 2024, driven by operational efficiency, product innovation, and franchise expansion. Secured $50 million in financing and strengthened focus on core brand amid a challenging, competitive market.