TH International Limited (Tims China) Earnings Report Highlights

Core Insights - TH International Limited, known as Tims China, reported an earnings per share (EPS) of -$0.31, missing the estimated EPS of -$0.14, and actual revenue of approximately $50.3 million, below the expected $55.5 million [1][6] Financial Performance - The company experienced a year-over-year increase in system sales of 12.8%, reaching RMB419.9 million [2] - Total revenues slightly decreased by 0.4% from the same quarter in 2024, amounting to RMB358.0 million, or approximately USD50.3 million [2] - The company has a negative price-to-earnings ratio of -1.66 and an earnings yield of -0.60, indicating a lack of profitability [4] - The enterprise value to operating cash flow ratio is significantly negative at -49.41, suggesting potential cash flow generation issues [4] Debt and Liquidity - The debt-to-equity ratio is negative at -1.90, indicating a higher level of debt compared to equity, which raises concerns about financial stability [5] - The current ratio is low at 0.26, suggesting potential liquidity issues in meeting short-term obligations [5] Growth and Expansion - Tims China ended the quarter with 27.9 million registered loyalty club members, marking a 22.3% increase compared to the previous year [3] - The company reported a net opening of 15 new stores, including 38 new made-to-order (MTO) stores and the closure of 23 non-MTO stores, including seven Tims Express locations [3]