TH International Q4 Earnings Call Highlights

TH International (NASDAQ:THCH) executives said 2025 marked a “critical modulation year” arsenic the Tim Hortons relation successful China balanced store enlargement with pruning underperforming locations, portion emphasizing borderline improvement, a increasing franchise footprint, and an progressively food-led income mix.

CEO and Director Yongchen Lu said the institution generated full strategy income of RMB 1.57 cardinal successful 2025, up 7.6% from 2024, driven “mainly” by 25 nett caller store openings. The store web ended the twelvemonth astatine 1,047 locations crossed 92 cities, which Lu said made China the brand’s largest planetary marketplace by store number arsenic of Dec. 31, 2025.

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Management said the institution continued to adjacent underperforming stores, peculiarly definite non-made-to-order “express” locations. Lu told analysts the institution opened galore high-rent, larger-format stores during 2019–2023 and is continuing to prune stores that are not gathering expectations, which helium said has contributed to declines successful gross from company-owned and operated stores implicit the past 2 years.

Lu said the institution has been reinforcing its “coffee positive caller prepared foods” positioning and has completed made-to-order renovations astatine much than 74% of system-wide stores. He besides highlighted a continued summation successful nutrient premix and nutrient attachment.

• Food income arsenic a percent of full revenues were 33.4% successful Q4 2025, up from 24% successful Q1 2023, according to Lu.

• Orders with nutrient items represented 51% of full orders successful Q4 2025, up from 45.2% successful Q1 2023, Lu said.

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Product innovation remained a cardinal focus. Lu said the institution launched 178 caller products successful 2025—96 beverages and 82 nutrient items—which contributed much than 25% of top-line sales. He besides said non-coffee beverage cups accounted for astir 18.3% of full beverage cups sold successful 2025, up from 14% successful 2024, arsenic the institution added options aimed astatine the day beverage daypart.

On the nutrient platform, Lu said the institution continued to physique connected bagels and bagel sandwiches, reaching cumulative income of implicit 80 cardinal bagel and bagel sandwich products arsenic of the extremity of 2025. He besides described meal and luncheon initiatives, including expanded croissant meal combos and caller bagel sandwich offerings.

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Lu said comparable transactions grew 2.7% successful 2025, but same-store income for system-wide stores declined 2.4% arsenic the institution applied higher transportation discounts amid intensified contention and “aggregator level dynamics.” He cited unit peculiarly from low-price section brands.