1. System sales increased by 12.8% year-over-year to RMB419.9 million. 2. Company-owned stores experienced positive same-store sales growth of 3.3%. 3. Registered loyalty club members grew to 27.9 million, up 22.3% year-over-year. 4. Operating loss increased to RMB65.7 million due to store closures. 5. Senior secured convertible notes of US$89.9 million issued to support growth.
FAQ
Why Bullish?
While overall revenue decreased slightly, growth in system sales and loyalty membership is encouraging. Historical data suggests similar growth trends can positively affect stock prices.
How important is it?
The article reflects a mix of positive growth metrics against operating losses, indicating critical trends for investors.
Why Short Term?
Immediate market sentiment may React positively due to growth metrics. However, ongoing operating losses may curb longer-term enthusiasm.
Tims China Reports Third Quarter 2025 Financial Results
On December 9, 2025, TH International Limited (Nasdaq: THCH), the exclusive operator of Tim Hortons coffee shops in China, announced its unaudited financial results for the third quarter of 2025. The results reflect a period of resilience, with system sales showcasing significant growth amidst various challenges.
Key Financial Highlights
- Total revenues: RMB358.0 million (USD50.3 million), a 0.4% decrease from the third quarter of 2024.
- System sales: RMB419.9 million (USD59.0 million), marking a 12.8% increase year-over-year.
- Same-store sales growth: Positive 3.3% for company-owned stores and 1.3% system-wide.
- New store openings: A total of 15 net new stores, including 38 made-to-order (MTO) openings.
- Loyalty program: 27.9 million registered members, reflecting a 22.3% annual growth.
Financial Overview for Q3 2025
During the third quarter, Tims China generated total revenues of RMB358.0 million, illustrating a slight decrease compared to RMB359.6 million in Q3 2024. Revenue from company-owned and operated stores reached RMB282.9 million, a decrease of 5.5%.
Other revenues, however, surged to RMB75.1 million (USD10.6 million), which is a remarkable 25.0% increase year-over-year as a result of expanding the franchise business from 382 stores in Q3 2024 to 479 in Q3 2025.
Cost and Expense Analysis
The costs and expenses for company-owned and operated stores totaled RMB278.2 million, reflecting a decrease of 0.5% from the same quarter last year. Breakdown of key costs includes:
- Food and packaging: RMB86.5 million, a decrease of 0.4%.
- Rental and property management fees: RMB55.1 million, down 4.6%.
- Payroll and employee benefits: RMB48.5 million, a 4.2% decrease.
- Delivery costs: Increased by 20.9% to RMB37.2 million, aligning with a rise in delivery orders.
Statements from Management
Mr. Yongchen Lu, CEO of Tims China, commented, “In Q3, we returned to positive net new store openings and maintained strong momentum in system sales, achieving a 12.8% year-over-year growth. Our innovative products and food strategy contributed significantly to our 3.3% same-store sales growth for company-owned and operated stores.”
Additionally, Mr. Dong (Albert) Li, CFO of Tims China, shared, “We are pleased to announce the successful issuance of approximately US$89.9 million in senior secured convertible notes and the strategic restructuring of our existing financial obligations. These actions will enhance our focus on expanding the Tim Hortons brand throughout China.”
Conclusion
Tims China continues to demonstrate resilience and strategic growth strategies in a competitive market environment. With a significant increase in system sales and loyalty members, the company positions itself well for future expansion and profitability as it advances its operational initiatives.