TH International Limited (THCH) Q3 2024 Earnings Call Transcript
Adjusted Corporate EBITDA Achieved adjusted corporate EBITDA profitability again in Q3 2024, maintaining profitability after achieving first-ever adjusted corporate EBITDA profitability in Q2 2024.
Company-Owned Store Contribution Margin Achieved highest-ever quarterly company-owned and operated store contribution margin of 13.3%, a year-over-year margin expansion of 5.8 percentage points, due to improvements in operational efficiencies and supply chain capabilities.
Monthly Average Transacting Customers Reached 3.3 million in Q3 2024, a 2.4% increase from 3.2 million in Q3 2023, indicating growth in customer engagement.
Digital Orders Percentage Increased from 82.6% in Q3 2023 to 86.6% in Q3 2024, reflecting enhanced digital capabilities to meet demand for delivery and takeaway services.
Food and Packaging Costs as Percentage of Revenues Reduced by 6.1 percentage points year-over-year, contributing to improved margins through better supply chain management and economies of scale.
Labor Costs as Percentage of Revenues Reduced by 3.0 percentage points year-over-year, indicating improved operational efficiency.
Marketing Expenses as Percentage of Total Revenues Decreased by 2.3 percentage points year-over-year, reflecting cost optimization measures and increased brand recognition.
General and Administrative Expenses as Percentage of Total Revenues Reduced by 2.7 percentage points year-over-year, resulting from streamlined headquarter costs.
Total Cash and Cash Equivalents As of September 30, 2024, total cash and cash equivalents were RMB203.7 million (US$29.1 million), down from RMB219.5 million as of December 31, 2023, primarily due to cash disbursements for business expansion and repayment of bank borrowings.
Loyalty Club Members Reached 22.8 million, reflecting a 35.3% year-over-year growth, indicating strong customer engagement and support for loyalty programs.
Chibaobao Cards Sold Sold over 120,000 cards in Q3 2024, driving a 4.6 times increase in purchase frequency among card purchasers compared to non-purchasers.
CapEx for Typical Store CapEx for a typical store is around RMB450,000 to RMB500,000 (approximately US$70,000), with a payback period of 2 to 3 years, indicating attractive unit economics.
Trade with 70% Backtested Accuracy
Analyst Views on THCH
About THCH
About the author
Tims China Celebrates 7th Anniversary with Air Canada Partnership
- Steady Growth: Since entering the Chinese market in 2019, Tims China has opened over 1,000 stores across nearly 100 cities and successfully listed on Nasdaq, demonstrating robust market expansion capabilities that solidify its position in the competitive coffee sector.
- Member Appreciation Campaign: To celebrate its seventh anniversary, Tims China has partnered with Air Canada to offer four round-trip tickets to over 31 million loyalty members, reflecting the brand's gratitude for consumer support while enhancing brand loyalty and customer relationships.
- Strategic Hub Development: Shanghai, where Tims China began, remains a key strategic hub, and the brand's expansion into major transit points like airports and high-speed rail stations increases visibility and convenience, attracting more travelers.
- Future Growth Vision: The CEO of Tims China stated that the company will continue to optimize its 'Coffee + Freshly Prepared Food' strategy, guided by local consumer preferences and digital innovation, ensuring sustained growth and competitiveness in the Chinese market.
TH International Shares Surge 8.7%, Leading Grocery & Drug Stores Sector
- Stock Performance: TH International's shares rose approximately 8.7% on Wednesday, positioning the company as a leader in the grocery and drug stores sector, indicating positive market sentiment regarding its business outlook.
- Industry Trends: The overall grocery and drug stores sector saw a collective increase of about 0.4%, reflecting consumer demand stability and industry resilience, which may attract more investor interest in this sector.
- Competitor Dynamics: Dine Brands Global also experienced a share increase of about 2.1%, further indicating that companies within this industry are gaining market recognition, potentially fostering competition and collaboration among peers.
- Market Impact: These stock price increases may encourage other related companies to adopt proactive market strategies, thereby driving growth and innovation across the grocery and drug stores industry.
TH International Reports 12.8% YoY Sales Growth to RMB 419.9 Million in Q3 2025
- Sales Growth: TH International's system sales increased by 12.8% year-over-year to RMB 419.9 million in Q3 2025, indicating a strong recovery in the Chinese market and enhancing its competitive position.
- Same-Store Sales: The same-store sales growth for company-owned stores was positive at 3.3%, reflecting strong consumer response to the newly launched 'Light & Fit Lunch Box' products, which boosted overall sales performance.
- Membership Growth: As of September 30, 2025, registered loyalty club members reached 27.9 million, representing a 22.3% year-over-year increase, laying a solid foundation for future customer loyalty and sales growth.
- Financial Performance: Despite a slight revenue decline of 0.4% to RMB 358 million, other revenues surged by 25% to RMB 75.1 million, showcasing the company's success in diversifying its revenue streams.
TH International Reports 12.8% YoY Sales Growth to RMB 419.9 Million in Q3
- Sales Growth: TH International's system sales reached RMB 419.9 million in Q3, reflecting a 12.8% year-over-year increase, indicating a robust recovery in the Chinese market and enhancing its competitive position.
- Same-Store Sales: The same-store sales growth for company-owned stores was positive at 3.3%, demonstrating sustained consumer demand for its products and further solidifying brand loyalty.
- Membership Growth: As of September 30, 2025, registered loyalty club members totaled 27.9 million, representing a 22.3% year-over-year increase, which lays a strong foundation for future sales growth.
- Financial Performance: Although total revenues were RMB 358.0 million, a slight decrease of 0.4% year-over-year, other revenues surged by 25% to RMB 75.1 million, showcasing the potential of diversified revenue streams.
TH International Launches Eco-Friendly Straws to Promote Sustainability
- Innovative Eco-Friendly Product: TH International collaborates with Tencent's CarbonXmade program to launch eco-friendly straws made using carbon capture technology, marking a significant advancement in the company's sustainability efforts.
- Market Rollout Plan: The new straws will be introduced in Tims stores across Beijing, Shanghai, and Shenzhen, aiming to encourage consumers to support a sustainable future through small everyday choices, which is expected to enhance brand image and attract environmentally conscious customers.
- Technology Application: Each 100 straws contains 3.185 grams of captured CO₂, showcasing the ability to turn climate burdens into usable materials while meeting Chinese regulatory standards, thereby enhancing the product's market competitiveness.
- Ongoing Commitment: The straw launch complements Tims China's
Tims China Set to Release Q3 2025 Financial Results on December 9, 2025
Financial Results Announcement: TH International Limited, the operator of Tim Hortons in China, will release its third quarter financial results on December 9, 2025, before the U.S. market opens, followed by a conference call at 8:00 AM EST.
Conference Call Access: The conference call will be available via webcast on the company's Investor Relations website, and participants are encouraged to pre-register using a provided link.
Company Overview: TH International Limited is the exclusive master franchisee for Tim Hortons in mainland China, Hong Kong, and Macau, founded by Cartesian Capital Group and Tim Hortons Restaurants International.
Company Philosophy: Tims China focuses on world-class execution, data-driven decision making, local relevance, continuous innovation, community engagement, and convenience in its operations.
Tims China Celebrates 7th Anniversary with Air Canada Partnership
- Steady Growth: Since entering the Chinese market in 2019, Tims China has opened over 1,000 stores across nearly 100 cities and successfully listed on Nasdaq, demonstrating robust market expansion capabilities that solidify its position in the competitive coffee sector.
- Member Appreciation Campaign: To celebrate its seventh anniversary, Tims China has partnered with Air Canada to offer four round-trip tickets to over 31 million loyalty members, reflecting the brand's gratitude for consumer support while enhancing brand loyalty and customer relationships.
- Strategic Hub Development: Shanghai, where Tims China began, remains a key strategic hub, and the brand's expansion into major transit points like airports and high-speed rail stations increases visibility and convenience, attracting more travelers.
- Future Growth Vision: The CEO of Tims China stated that the company will continue to optimize its 'Coffee + Freshly Prepared Food' strategy, guided by local consumer preferences and digital innovation, ensuring sustained growth and competitiveness in the Chinese market.
TH International Shares Surge 8.7%, Leading Grocery & Drug Stores Sector
- Stock Performance: TH International's shares rose approximately 8.7% on Wednesday, positioning the company as a leader in the grocery and drug stores sector, indicating positive market sentiment regarding its business outlook.
- Industry Trends: The overall grocery and drug stores sector saw a collective increase of about 0.4%, reflecting consumer demand stability and industry resilience, which may attract more investor interest in this sector.
- Competitor Dynamics: Dine Brands Global also experienced a share increase of about 2.1%, further indicating that companies within this industry are gaining market recognition, potentially fostering competition and collaboration among peers.
- Market Impact: These stock price increases may encourage other related companies to adopt proactive market strategies, thereby driving growth and innovation across the grocery and drug stores industry.
TH International Reports 12.8% YoY Sales Growth to RMB 419.9 Million in Q3 2025
- Sales Growth: TH International's system sales increased by 12.8% year-over-year to RMB 419.9 million in Q3 2025, indicating a strong recovery in the Chinese market and enhancing its competitive position.
- Same-Store Sales: The same-store sales growth for company-owned stores was positive at 3.3%, reflecting strong consumer response to the newly launched 'Light & Fit Lunch Box' products, which boosted overall sales performance.
- Membership Growth: As of September 30, 2025, registered loyalty club members reached 27.9 million, representing a 22.3% year-over-year increase, laying a solid foundation for future customer loyalty and sales growth.
- Financial Performance: Despite a slight revenue decline of 0.4% to RMB 358 million, other revenues surged by 25% to RMB 75.1 million, showcasing the company's success in diversifying its revenue streams.
TH International Reports 12.8% YoY Sales Growth to RMB 419.9 Million in Q3
- Sales Growth: TH International's system sales reached RMB 419.9 million in Q3, reflecting a 12.8% year-over-year increase, indicating a robust recovery in the Chinese market and enhancing its competitive position.
- Same-Store Sales: The same-store sales growth for company-owned stores was positive at 3.3%, demonstrating sustained consumer demand for its products and further solidifying brand loyalty.
- Membership Growth: As of September 30, 2025, registered loyalty club members totaled 27.9 million, representing a 22.3% year-over-year increase, which lays a strong foundation for future sales growth.
- Financial Performance: Although total revenues were RMB 358.0 million, a slight decrease of 0.4% year-over-year, other revenues surged by 25% to RMB 75.1 million, showcasing the potential of diversified revenue streams.
TH International Launches Eco-Friendly Straws to Promote Sustainability
- Innovative Eco-Friendly Product: TH International collaborates with Tencent's CarbonXmade program to launch eco-friendly straws made using carbon capture technology, marking a significant advancement in the company's sustainability efforts.
- Market Rollout Plan: The new straws will be introduced in Tims stores across Beijing, Shanghai, and Shenzhen, aiming to encourage consumers to support a sustainable future through small everyday choices, which is expected to enhance brand image and attract environmentally conscious customers.
- Technology Application: Each 100 straws contains 3.185 grams of captured CO₂, showcasing the ability to turn climate burdens into usable materials while meeting Chinese regulatory standards, thereby enhancing the product's market competitiveness.
- Ongoing Commitment: The straw launch complements Tims China's
Tims China Set to Release Q3 2025 Financial Results on December 9, 2025
Financial Results Announcement: TH International Limited, the operator of Tim Hortons in China, will release its third quarter financial results on December 9, 2025, before the U.S. market opens, followed by a conference call at 8:00 AM EST.
Conference Call Access: The conference call will be available via webcast on the company's Investor Relations website, and participants are encouraged to pre-register using a provided link.
Company Overview: TH International Limited is the exclusive master franchisee for Tim Hortons in mainland China, Hong Kong, and Macau, founded by Cartesian Capital Group and Tim Hortons Restaurants International.
Company Philosophy: Tims China focuses on world-class execution, data-driven decision making, local relevance, continuous innovation, community engagement, and convenience in its operations.
