SHANGHAI and NEW YORK, March 06, 2025 (GLOBE NEWSWIRE) -- TH International Limited (NASDAQ THCH), the exclusive operator of Tim Hortons coffee shops in China (“Tims China” or the “Company”) will be attending and participating in the following upcoming conferences: Tuesday March 11 and Wednesday March 12: BofA Securities 2025 Consumer & Retail Conference Miami Beach, FL. Tims will participate in a fireside chat on Wednesday March 12 at 10:30am ET. Thursday March 13: UBS Global Consumer and Retail Conference ...

Core Insights - TH International Limited, the exclusive operator of Tim Hortons in China, is celebrating its sixth anniversary with significant achievements, including over 1,000 stores across 82 cities and a NASDAQ listing [1][9] - The company is launching new products and promotions to commemorate its anniversary and adapt to local consumer preferences [2][8] Product Innovations - Tims China is reintroducing three classic donuts with 60% less sugar, maintaining their original taste, and offering a promotion of a free Classic Original Donut with any selected coffee purchase during afternoon tea hours [3][5] - The "Rich & Smooth Latte Series" has been introduced, featuring 40% more coffee beans and a blend of premium Arabica coffee with cold-drip creamy milk, tailored for Chinese consumers [7] Market Positioning - Tims China has established a unique "Coffee + Warm Food" strategy, differentiating itself in the competitive coffee market and appealing to evolving consumer preferences [1][8] - The company has garnered a loyal customer base, with over 24 million Club members, reflecting its successful adaptation to the Chinese market [8]

Core Insights - TH International Limited, the exclusive operator of Tim Hortons in China, has launched the "Light Bagel Sandwich Lunch Box Series" to enhance its offerings of high-quality, convenient meals targeting urban consumers seeking healthy options [1][8] Product Offering - The Lunch Box series includes a combination of a bagel sandwich, a fresh vegetable salad, and a healthy beverage, available nationwide starting February 18 [2] - Customers can choose from eight bagel sandwich varieties, five side dishes, and eleven beverage options, allowing for customization based on personal tastes and nutritional preferences [2] Pricing and Discounts - The starting price for the Lunch Box is RMB 25.8, especially attractive with a 40% discount available through the "Chibaobao Card," making it a cost-effective option for consumers [3] Health and Quality Focus - The Lunch Box series emphasizes "light and low-calorie" options, with all ingredients meeting strict quality and calorie control standards [4] - Beverages in the series adhere to a "5-Zero" commitment, ensuring no non-dairy creamer, artificial creamer, hydrogenated vegetable oils, trans fats, or instant tea powder [4] Nutritional Composition - The bagel sandwiches feature high-fiber bagels and premium proteins such as chicken breast, tuna, and beef, with specific options like Avocado Chicken and Teriyaki Chicken Thigh [5] - The salads consist of seasonal fresh vegetables, and beverage choices include Americano coffee and low-calorie lemon water, promoting a balanced and satisfying meal [5] Convenience and Packaging - The Lunch Box is designed for both dine-in and takeaway, catering to the needs of urban professionals for flexibility [6] Market Potential - The CEO of Tims China expressed excitement about the market potential of the new Lunch Box series, highlighting its role in expanding the lunch menu and meeting diverse consumer needs [8]

Group 1 - Tim Hortons has successfully established a strong value-per-dollar proposition in both Canada and the United States, making it a key asset for the food giant [1] - The coffee shop chain is recognized as the strongest link within its parent company, indicating its significant contribution to overall performance [1] Group 2 - The analysis is conducted by a specialized equity analyst with a focus on restaurant stocks, utilizing advanced analytical models and valuation techniques [1] - The coverage includes various segments of the restaurant industry, such as QSR, fast casual, casual dining, fine dining, and family dining, providing comprehensive insights for investors [1]

Group 1 - TH International Limited, the exclusive operator of Tim Hortons in China, has opened its first store in Nanchang, Jiangxi Province, expanding its presence to 27 out of 34 province-level geographies in China [1] - Nanchang, with a population of over 6.5 million, is a significant economic hub and serves as a vital link among major economic centers in China [2] - The new store in Nanchang adds to Tims China's network of 1,022 stores across 82 cities, catering to a membership base of more than 24 million [3] Group 2 - Tims China has renovated 639 stores to enhance guest experience, featuring made-to-order food preparation and open kitchens for customer engagement [4] - The CEO of Tims China expressed excitement about the new store's opening, which coincides with the launch of a special Chinese New Year menu, including seasonal offerings [5] - The company's operational philosophy emphasizes world-class execution, data-driven decision making, and local relevance, aiming for continuous innovation and community engagement [8]

Core Insights - Tims China launched its inaugural "Timsgiving" campaign, encouraging customers to participate in a pay-it-forward initiative, which resulted in 1,500 people forwarding coffee to others, with the longest chain involving 30 customers [1][5][6] - The campaign ran from November 26 to November 28, offering the first customer at each location a free beverage from the Double Series, promoting goodwill among customers [5][6] - The initiative was well-received, with many customers sharing their positive experiences on social media, highlighting the warmth and kindness fostered by the campaign [2][5] Company Overview - Tims China is the exclusive master franchisee of Tim Hortons coffee shops in mainland China, Hong Kong, and Macau, founded by Cartesian Capital Group and Tim Hortons Restaurants International [7] - The company's philosophy emphasizes world-class execution, data-driven decision-making, local relevance, continuous innovation, community engagement, and convenience [7]

Tims China Nasdaq: THCH Q3 2024 Earnings Presentation November 12, 2024 Disclaimer and Risk Factors This presentation ("Presentation") is provided by TH International Limited ("THIL") for informational purposes only and does not constitute, or form a part of, an offer to sell, or the solicitation of an offer to sell or an offer to buy, any securities. The information herein does not purport to be all-inclusive. Neither THIL nor any of its affiliates, agents, advisors, directors, officers, employees and shar ...

Financial Data and Key Metrics Changes - The company maintained adjusted corporate EBITDA profitability in Q3 2024, following its first-ever adjusted corporate EBITDA profitability in Q2 2024 [8][20]. - The company achieved its highest-ever quarterly company-owned and operated store contribution margin of 13.3%, reflecting a year-over-year margin expansion of 5.8 percentage points [9][24]. - Total cash and cash equivalents as of September 30, 2024, were RMB203.7 million (approximately US$29.1 million), down from RMB219.5 million as of December 31, 2023 [25]. Business Line Data and Key Metrics Changes - The company completed renovations of 539 stores to enhance freshly prepared food offerings, which included adding working stations for efficient food preparation [10]. - In Q3 2024, the company introduced 10 new beverages and nine new food items, focusing on healthy ingredients [18]. - The average number of registered Loyalty Club Members reached 22.8 million, a 35.3% year-over-year growth [17]. Market Data and Key Metrics Changes - Monthly average transacting customers reached 3.3 million in Q4 2024, a 2.4% increase from the same quarter in 2023 [21]. - Digital orders as a percentage of total orders rose from 82.6% in Q3 2023 to 86.6% in Q3 2024, indicating a growing demand for delivery and takeaway services [21]. Company Strategy and Development Direction - The company is focused on product differentiation and providing great value, avoiding direct participation in price wars [28]. - The strategic partnership with sub-franchises is aimed at expanding the store network and increasing density in existing cities [15]. - The company is committed to capital-efficient growth, particularly through small format stores and the growth of its sub-franchisee network [29][26]. Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing price competition in the coffee market but emphasized their differentiated strategy of Coffee Plus Warm Food at affordable prices [38]. - The company plans to continue leveraging its loyalty program to drive purchase frequency among members [35]. - Management expressed confidence in the strong momentum of individual franchising, with 5,000 applications received and 43 stores opened as of the end of September [15][33]. Other Important Information - The company launched the Chibaobao Cards, which have been successful in driving purchase frequency, with over 120,000 cards sold in Q3 [14]. - The company reported a significant reduction in food and packaging costs as a percentage of revenues by 6.1 percentage points year-over-year [22]. Q&A Session Summary Question: How much room do you see for continuing expense leverage moving forward? - Management indicated that fixed costs will be allocated as revenue increases, leading to margin improvement [32]. Question: Is there a timeline for converting sub-franchise applications to operating status? - Management stated that they are careful in choosing partners and locations, with strong progress expected in Q4 and next year [33]. Question: Do you have data showing the impact of the loyalty program on repeat customers? - Management confirmed that loyalty members have a significantly higher purchase frequency compared to non-members [35]. Question: How important are the renovated open kitchens for Tims franchises? - Management emphasized that open kitchens are crucial for differentiating Tims through freshly prepared food [41]. Question: What is the capital required for company-owned stores versus sub-franchises? - Management noted that the CapEx for a typical store is around RMB450,000 to RMB500,000, with a payback period of two to three years [42].

Financial Performance - Total revenues for Q3 2024 were RMB359.6 million (USD51.3 million), a 17.1% decrease from RMB433.9 million in Q3 2023[4] - System sales decreased by 15.5% year-over-year to RMB372.4 million (USD53.1 million) in Q3 2024[5] - Adjusted corporate EBITDA was RMB2.0 million (USD0.3 million), compared to a loss of RMB63.0 million in Q3 2023, marking a 15.1 percentage points improvement in margin[27] - Company-owned and operated store revenues for 2024 were RMB 299,455, down 22.9% from RMB 388,321 in 2023[62] - The net loss from continuing operations for the three months ended September 30, 2024, was RMB 148,562 thousand, compared to RMB 88,851 thousand for the same period in 2023, representing a significant increase in losses[63] - The company reported a comprehensive loss attributable to shareholders of RMB 167,511 thousand for the three months ended September 30, 2024, compared to RMB 76,705 thousand in 2023, indicating a worsening financial position[63] - Operating loss for 2024 was RMB (55,919), improving from RMB (147,650) in 2023, indicating a reduction in losses by 62.1%[62] - Adjusted net loss for 2023 was RMB (100,111) million, decreasing to RMB (41,406) million by September 30, 2024, indicating a 59% improvement[70] - Adjusted net loss margin improved from -23.1% in 2023 to -11.5% by September 30, 2024, reflecting a significant reduction in losses[70] Store Operations - Company owned and operated store sales decreased by 22.9% to RMB299.5 million (USD42.7 million), driven by a 20.7% decline in same-store sales[11] - Same-store sales growth for company-owned and operated stores is projected to decline to -20.7% by September 30, 2024, down from -0.4% on September 30, 2023[32] - The number of franchised stores increased from 174 to 382 year-over-year, contributing to a 31.8% increase in other revenues to RMB60.1 million (USD8.6 million)[12] - Total stores increased from 759 on September 30, 2023, to a projected 946 by September 30, 2024[32] Cost Management - Food and packaging costs decreased by 36.3% to RMB86.9 million (USD12.4 million), with costs as a percentage of revenues dropping by 6.1 percentage points to 29.0%[13] - Marketing expenses decreased by 42.1% to RMB18.5 million (USD2.6 million), reducing the percentage of total revenues by 2.3 percentage points to 5.1%[21] - General and administrative expenses from continuing operations decreased to RMB 39,752 thousand for the three months ended September 30, 2024, down from RMB 65,829 thousand in 2023, reflecting cost-cutting measures[68] - Total costs and expenses for 2024 were RMB 415,473, a decrease of 28.5% from RMB 581,571 in 2023[62] Cash Flow and Assets - As of September 30, 2024, total cash and cash equivalents were RMB203.7 million (USD29.1 million), down from RMB219.5 million at the end of 2023[31] - Cash and cash equivalents as of September 2024 were RMB 196,734, a slight decrease of 2.9% from RMB 202,315 in December 2023[59] - The cash at the end of the period for September 30, 2024, was RMB 196,734 thousand, a decrease from RMB 461,755 thousand at the beginning of the period, highlighting cash flow challenges[64] - Total current assets increased to RMB 441,890 in September 2024, up from RMB 458,620 in December 2023[59] - Non-current assets increased to RMB 1,234,294 in September 2024, up from RMB 1,756,819 in December 2023[59] Shareholder Equity and Liabilities - Total liabilities rose to RMB 2,358,834 in September 2024, compared to RMB 2,637,868 in December 2023, reflecting a decrease of 10.6%[60] - Total shareholders' equity showed a deficit of RMB (682,650) in September 2024, improving from RMB (422,429) in December 2023[60] - Accumulated losses decreased to RMB (2,536,947) in September 2024 from RMB (2,256,424) in December 2023, showing an improvement of 10.5%[60] Strategic Initiatives - The introduction of four new seasonal products during the Bagel Festival aims to enhance customer engagement and drive sales[43] - Tims China participated in the Fourth ESG Global Leaders Summit, emphasizing its commitment to sustainable development[44] - The company plans to optimize its cost structure and improve operational efficiency as part of its growth strategy[54] - The company aims to increase the frequency of guest visits through special promotions during events like the Bagel Festival[43] - Future store openings are anticipated to contribute positively to overall system sales growth despite current challenges[32] Losses and Impairments - The company experienced a net cash used in operating activities of RMB 12,999 thousand for the three months ended September 30, 2024, compared to RMB 30,446 thousand in 2023, showing an improvement in cash flow management[64] - Share-based compensation expenses decreased from RMB 61,727 million in 2023 to RMB 1,260 million by September 30, 2024, a reduction of over 98%[70] - Impairment losses of long-lived assets increased from RMB 21,792 million in 2023 to RMB 40,386 million by September 30, 2024, indicating a rise of approximately 85%[70] - Loss on disposal of property and equipment decreased from RMB 13,780 million in 2023 to RMB 3,716 million by September 30, 2024, a reduction of about 73%[70] - Changes in fair value of convertible notes increased from RMB 31,372 million in 2023 to RMB 48,461 million by September 30, 2024, an increase of approximately 55%[71] - The company reported a one-off expense of store closure amounting to RMB 3,181 million in 2024[70]

Core Insights - TH International Limited, the exclusive operator of Tim Hortons in China, reported its third quarter 2024 financial results, highlighting a focus on profitability despite challenges in the competitive coffee market [1][3]. Financial Performance - Total revenues for Q3 2024 were RMB 359.6 million (USD 51.3 million), a decrease of 17.1% from RMB 433.9 million in Q3 2023 [2]. - System sales decreased by 15.5% year-over-year to RMB 372.4 million (USD 53.1 million) [2]. - The company achieved a company-owned and operated store contribution of RMB 39.9 million (USD 5.7 million), a 37.6% increase from the same quarter in 2023 [2]. - The contribution margin for company-owned and operated stores was 13.3%, reflecting a 5.8 percentage point improvement year-over-year [2][3]. - Adjusted corporate EBITDA was RMB 2.0 million (USD 0.3 million), compared to a loss of RMB 63.0 million in Q3 2023, marking the second consecutive quarter of positive adjusted corporate EBITDA [12]. Store Operations - The company opened 49 new franchised stores during the quarter, while closing underperforming company-owned stores [2]. - As of September 30, 2024, registered loyalty club members reached 22.8 million, a 35.3% increase year-over-year [2]. Cost Management - Company-owned and operated store costs decreased by 29.0% to RMB 279.6 million (USD 39.9 million) compared to Q3 2023 [6]. - Food and packaging costs fell by 36.3% to RMB 86.9 million (USD 12.4 million), with a decrease in costs as a percentage of revenues from 35.1% to 29.0% [6]. - Payroll and employee benefits expenses decreased by 34.5% to RMB 50.7 million (USD 7.2 million), with a reduction in percentage of revenues from 19.9% to 16.9% [6]. Marketing and Administrative Expenses - Marketing expenses were reduced by 42.1% to RMB 18.5 million (USD 2.6 million), decreasing as a percentage of total revenues from 7.4% to 5.1% [8]. - General and administrative expenses decreased by 39.6% to RMB 39.8 million (USD 5.7 million), with adjusted expenses down 39.5% [9]. Strategic Initiatives - The company is focusing on product differentiation and enhancing operational efficiencies, including the renovation of 539 stores to improve food preparation processes [4][3]. - Tims China is actively engaging in partnerships and promotions, such as the collaboration with Meng Lan for the Bagel Festival, aimed at increasing customer engagement [20]. Market Position - Despite a competitive landscape, the company is committed to delivering value through fresh and healthy food options, while optimizing supply chain efficiencies to enhance profitability [4][3].