TH International Q1 sales up 3.5% YoY to RMB376.3 mln, rev. down 9.5% to RMB300.7 mln.
ByAinvest
Tuesday, Jun 24, 2025 5:39 am ET1min read
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In the first quarter of 2025, Tim Hortons China reported a 3.5% year-over-year (YoY) increase in system sales to RMB376.3 million, according to the company's unaudited financial results [1]. Despite a 9.5% decrease in total revenues to RMB300.7 million, the company's strategic positioning in "Coffee + Freshly Prepared Food" has shown resilience, with a significant improvement in the company-owned and operated store contribution margin of 5.9 percentage points [1].
The company's loyalty club membership grew by 25.7% YoY to 25.1 million members as of March 31, 2025 [1]. This growth, driven by the introduction of the "Light & Fit Lunch Box" combo products, indicates a strong customer base and increased brand loyalty. The company also reported net new store openings totaling 2, with 7 company-owned and operated stores closed and 9 franchised stores opened [1].
The company-owned and operated store contribution margin improved significantly, indicating better operational efficiency and cost control measures. The company's efforts to optimize store unit economics and enhance operational efficiencies have resulted in a 5.9 percentage point improvement in the contribution margin [1]. Additionally, the company's food and packaging costs decreased by 4.3 percentage points, labor costs by 2.4 percentage points, and other operating expenses by 1.1 percentage points [1].
Looking ahead, Tim Hortons China aims to further enhance its operational efficiencies, roll out its differentiating made-to-order fresh and healthy food preparation model, and accelerate the expansion of its successful sub-franchising business [1]. The company's focus on profitable growth and cost optimization measures positions it well for future quarters.
References
[1] https://www.globenewswire.com/news-release/2025/06/24/3104038/0/en/Tims-China-Announces-First-Quarter-2025-Financial-Results.html
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• Tim Hortons China Q1 sales up 3.5% YoY to RMB376.3m • Revenues down 9.5% to RMB300.7m • Loyalty club members grew 25.7% YoY to 25.1mln • Net new store openings totaled 2 • Company owned store contribution margin improved 5.9%
Title: Tim Hortons China Q1 Sales Up 3.5% YoY to RMB376.3mIn the first quarter of 2025, Tim Hortons China reported a 3.5% year-over-year (YoY) increase in system sales to RMB376.3 million, according to the company's unaudited financial results [1]. Despite a 9.5% decrease in total revenues to RMB300.7 million, the company's strategic positioning in "Coffee + Freshly Prepared Food" has shown resilience, with a significant improvement in the company-owned and operated store contribution margin of 5.9 percentage points [1].
The company's loyalty club membership grew by 25.7% YoY to 25.1 million members as of March 31, 2025 [1]. This growth, driven by the introduction of the "Light & Fit Lunch Box" combo products, indicates a strong customer base and increased brand loyalty. The company also reported net new store openings totaling 2, with 7 company-owned and operated stores closed and 9 franchised stores opened [1].
The company-owned and operated store contribution margin improved significantly, indicating better operational efficiency and cost control measures. The company's efforts to optimize store unit economics and enhance operational efficiencies have resulted in a 5.9 percentage point improvement in the contribution margin [1]. Additionally, the company's food and packaging costs decreased by 4.3 percentage points, labor costs by 2.4 percentage points, and other operating expenses by 1.1 percentage points [1].
Looking ahead, Tim Hortons China aims to further enhance its operational efficiencies, roll out its differentiating made-to-order fresh and healthy food preparation model, and accelerate the expansion of its successful sub-franchising business [1]. The company's focus on profitable growth and cost optimization measures positions it well for future quarters.
References
[1] https://www.globenewswire.com/news-release/2025/06/24/3104038/0/en/Tims-China-Announces-First-Quarter-2025-Financial-Results.html
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