TH International (US:THCH) Globenewswire·2025-12-09 10:45Core Insights - TH International Limited, the exclusive operator of Tim Hortons in China, reported a 12.8% year-over-year increase in system sales, reaching RMB 419.9 million (USD 59.0 million) for Q3 2025 [1][7] - The company achieved a positive same-store sales growth of 3.3% for company-owned and operated stores, while system-wide same-store sales growth was 1.3% [1][7] - The number of registered loyalty club members grew to 27.9 million, reflecting a 22.3% year-over-year increase [1][7] Financial Performance - Total revenues for Q3 2025 were RMB 358.0 million (USD 50.3 million), a slight decrease of 0.4% from RMB 359.6 million in Q3 2024 [7][8] - Company-owned and operated store contribution was RMB 21.8 million (USD 3.1 million), down from RMB 39.9 million in the same quarter of 2024 [7][8] - The adjusted corporate EBITDA was a loss of RMB 15.0 million (USD 2.1 million) for Q3 2025, compared to a gain of RMB 2.0 million in Q3 2024 [15] Operational Highlights - The company opened a net total of 15 new stores during the quarter, with 38 made-to-order (MTO) stores opened and 23 non-MTO stores closed [7] - The total number of stores reached 1,030 as of September 30, 2025, with 551 company-owned and operated stores and 479 franchised stores [20] - The company reported a year-over-year increase of 58.2% in profits from other revenues during the quarter [5] Cost and Expense Management - Company-owned and operated store costs and expenses were RMB 278.2 million (USD 39.1 million), a decrease of 0.5% from RMB 279.6 million in Q3 2024 [8] - Marketing expenses decreased by 14.4% to RMB 15.8 million (USD 2.2 million) due to cost optimization measures [11] - General and administrative expenses increased by 30.3% to RMB 51.8 million (USD 7.3 million), primarily due to higher outside service fees and impairment losses [12] Debt and Financing Activities - The company successfully issued approximately USD 89.9 million in senior secured convertible notes due September 2029, which will support the development of its store network [5][22] - The restructuring of unsecured convertible notes due 2027 was also announced, along with the repurchase of outstanding amounts due under variable rate convertible senior notes due 2026 [5][22] Sustainability Initiatives - Tims China launched an eco-friendly straw in collaboration with Tencent's CarbonXmade program, aiming to promote sustainability among consumers [23]