Tims China Announces Second Quarter 2025 Financial Results

Core Insights - TH International Limited, the exclusive operator of Tim Hortons in China, reported a 1.4% year-over-year increase in system sales to RMB409.5 million (USD57.2 million) for Q2 2025, alongside a positive adjusted corporate EBITDA of RMB2.2 million (USD0.3 million) [1][4][13] - The company achieved a significant growth in its loyalty program, with registered members reaching 26.2 million, marking a 22.4% increase year-over-year [1][5] Financial Performance - Total revenues for Q2 2025 were RMB349.0 million (USD48.7 million), reflecting a 4.9% decrease from RMB366.8 million in Q2 2024 [5][6] - Food revenue increased by 8.6% year-over-year, contributing 35.2% to system sales, up from 32.5% in Q2 2024 [3][4] - The company reported a net loss of RMB75.9 million (USD10.6 million) for Q2 2025, an improvement from a net loss of RMB99.5 million in the same quarter of 2024 [14][15] Operational Highlights - The company closed nine stores during the quarter, resulting in a net opening of 40 made-to-order (MTO) stores and the closure of 49 non-MTO stores [5][6] - The contribution margin from company-owned and operated stores was 9.6%, down from 10.1% in Q2 2024 [5][8] - The number of franchised stores increased from 333 as of June 30, 2024, to 449 as of June 30, 2025, contributing to a 50.7% increase in other revenues [5][8] Cost Management - Company-owned and operated store costs decreased by 12.1% year-over-year to RMB272.4 million (USD38.0 million) [7][8] - Food and packaging costs fell by 15.0% year-over-year, benefiting from improved supply chain efficiencies [7][8] - Payroll and employee benefits expenses decreased by 17.4% year-over-year, reflecting optimization in staffing arrangements [7][8] Marketing and Brand Development - The company launched the "Light & Fit Lunch Box" platform to enhance its product offerings and drive top-line growth [3][4] - Marketing expenses increased by 8.4% year-over-year to RMB13.9 million (USD1.9 million), primarily due to promotional efforts for new products [9][10] Liquidity Position - As of June 30, 2025, the company's total cash and cash equivalents were RMB178.8 million (USD25.0 million), a slight decrease from RMB184.2 million at the end of 2024 [17]