What were the key takeaways from TH International’s earnings call?

What were the key takeaways from TH International's earnings call?

What factors drove the changes in TH International's revenue and profit?

What is TH International's gross profit margin?

What is the market's earnings forecast for TH International next quarter?

What is TH International's latest dividend and current dividend yield?

What is the revenue and EPS growth rate for TH International year over year?

Did TH International beat or miss consensus estimates last quarter?

- **Revenue Growth**: Q3 system sales up 12.8% YoY, driven by 24.2% food revenue growth and 23.1% delivery revenue expansion.
- **Margin Improvement**: Targeting mid-teens store EBITDA margin next year via cost optimization and new product launches.
- **Franchise Momentum**: 8,400 franchise applications, 300+ store conversions, with special channel stores achieving 2-year payback periods.
- **Liquidity**: USD 89.9M convertible notes issuance supports debt restructuring and store network expansion.
- **Digital Dominance**: 91% of orders digital, reflecting strong online engagement and delivery growth.

**【CEO Summary Section】**
- Q3 2025 system sales grew 12.8% YoY, with 3.3% same-store sales growth for company-owned stores.
- Food revenue surged 24.2% YoY, contributing 36.5% of total sales (vs 31.5% in Q3 2024), driven by new SKUs and seasonal offerings.
- Delivery revenue increased 23.1% YoY, benefiting from aggregator promotions.
- Profit from other revenues rose 58.2% YoY, supported by sub-franchisee and retail business expansion.
- Adjusted EBITDA loss narrowed 11.5% YoY, with store contribution margin stable at 8.1% for first 9 months.
- Franchise momentum: 8,400 applications for individual franchise stores, 300+ conversions, and expansion into 91 cities.
- Strategic channel stores (e.g., airports, hospitals) achieved mid/high teens EBITDA margin with 2-year payback periods.

**【CFO Financial Commentary】**
- Monthly active customers reached 3.85M (16.7% YoY growth), with digital orders at 91% of total.
- Company-owned store revenues declined 5.5% YoY due to closures, offset by 3.3% same-store sales growth.
- Franchised business revenue up 25% YoY, system sales up 12.8% YoY.
- Cost pressures: food packaging (+1.6pp), delivery costs (+2.9pp), offset by lower marketing expenses (-0.7pp).
- Adjusted EBITDA margin negative 4.2% (vs +0.6% YoY), cash position RMB 159.3M.
- Liquidity strategy: USD 89.9M convertible notes issuance, repurchased variable notes, extended unsecured notes to 2029.

**【Q&A Key Highlights】**
- **Liquidity & Financing**: Reduced near-term liabilities, pursuing additional debt/equity financing for store expansion.
- **Margin Outlook**: Temporary delivery cost pressure expected to ease; targeting mid-teens store margin next year via cost optimization.
- **Special Channel Stores**: 60+ locations in high-traffic venues (e.g., airports, hospitals) with 2-year payback periods, mid/high teens EBITDA margin.
- **Franchise Expansion**: 8,400 individual franchise applications, 300+ conversions, showcasing market confidence in Tims model.

TH International Limited(THCH)-20251209-2025 Q3 Earnings call transcript

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