Terraton sees promise in biochar, but the technology has struggled to scale. The startup thinks a franchise model could be what unlocks biochar's potential. https://t.co/xB2jb51928 ...

Financial Data and Key Metrics Changes - In Q2 2025, food revenue increased by 8.6% year over year, with food revenue contribution reaching a historical high of 35.2%, up 2.8 percentage points from 32.5% in 2024 [6] - System sales grew by 1.4% year over year, while adjusted corporate EBITDA returned to positive, and adjusted net losses were reduced by 16.2% [7][21] - Monthly average transacting customers reached 3,590,000, a 14.3% increase from 3,140,000 in Q2 2024 [16] Business Line Data and Key Metrics Changes - Revenues from franchised and retail businesses increased by 50.7% year over year, with the number of franchised stores rising from 333 to 449 [18] - Company-owned and operated store revenues dropped by 12.5% year over year due to planned closures of underperforming stores and a 3.6% decrease in same-store sales growth [17] - Delivery orders for company-owned stores increased by 10.2% year over year, indicating a growing demand for delivery services [20] Market Data and Key Metrics Changes - The average number of registered loyalty club members reached 26.2 million, reflecting a 22.4% year over year growth [9] - Digital orders as a percentage of total orders rose from 86.5% in Q2 2024 to an all-time high of 90.4% in Q2 2025 [16] Company Strategy and Development Direction - The company reinforced its coffee plus freshly prepared food strategy with the launch of the live lunch box platform and new combo products [6] - A target to open around 200 franchise stores in 2025 was set, focusing on capital efficiency and convenience for customers [9] - The company aims to enhance operational efficiencies through supply chain optimizations and rigorous cost controls [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about achieving positive same-store sales in Q3 and the second half of the year, indicating a recovery trend [38] - The company is close to achieving operating cash flow self-sufficiency and is working on securing additional capital for growth [33][43] Other Important Information - Marketing expenses as a percentage of total revenues increased to approximately 4%, up 0.5 percentage points year over year, primarily to support the lunch box campaign [20] - The company is focused on monetizing its loyalty members and designing campaigns to increase their spending [41] Q&A Session Summary Question: Current thinking on the rate of sub franchise applications - Management clarified that 41 of the 49 closures in Q2 were non-MTO Express stores, and they expect over 100 net openings this year, targeting 200 to 300 new openings annually in the coming years [28] Question: Sustainability of increased marketing expenses - Management noted that same-store sales have been recovering well and expect positive growth in the second half of the year, attributing some marketing expenses to the lunch box campaign [30][31] Question: Balancing investment for growth with capital conservatism - Management indicated they are close to breakeven on adjusted corporate EBITDA and are working on securing additional financing to open more profitable stores while balancing financial positions [32][34] Question: Update on refinancing convertible debt - Management stated they are making good progress on refinancing and will disclose details when available [40] Question: Monetizing loyalty members - Management acknowledged the challenge of monetizing loyalty members and emphasized the need to design effective products and campaigns to increase member spending [41] Question: Expectation of liquidity position improvement - Management expressed confidence in their liquidity position, stating they are approaching operating cash flow self-sufficiency and are working to bring in new capital [43]

Core Insights - European Wax Center (EWCZ) and Sally Beauty Holdings (SBH) target different segments within the beauty and personal care industry, with EWCZ focusing on a service-driven model through franchised waxing centers, while SBH emphasizes retailing professional-grade beauty products [1][2] European Wax Center (EWCZ) - EWCZ is developing a data-rich, digital-first marketing platform to enhance guest acquisition, introducing new tools in Q1 2025 to measure advertising effectiveness and reduce cost per acquisition [3] - The company is enhancing franchisee profitability and operational support by expanding the franchisee support team and increasing engagement with the learning management system by 50% [4] - EWCZ is adopting a disciplined expansion strategy, targeting underpenetrated areas for new center openings in 2026, supported by improved market planning tools and a rigorous site approval process [5] - Despite strategic advancements, EWCZ faces rising SG&A costs and elevated interest expenses, leading to a projected net reduction in center count for 2025 [6] - EWCZ's stock gained 54.8% over three months, outperforming SBH's 27.2% gain, reflecting strength in its digital and franchise model [9][16] - The Zacks Consensus Estimate for EWCZ's 2025 earnings per share (EPS) indicates a year-over-year growth of 35.6%, with estimates remaining unchanged at 61 cents [12] Sally Beauty Holdings (SBH) - SBH is focused on enhancing customer centricity, accelerating high-margin owned brand growth, and improving operational efficiency, with global e-commerce sales reaching $94 million in Q2 fiscal 2025, a 6% increase [7] - The company is executing a brand refresh starting May 2025 to enhance its position as a beauty destination, with positive feedback from initial store updates in Orlando [8] - Operational excellence is a priority for SBH, with the Fuel for Growth program delivering $20 million in pre-tax savings in the first half of fiscal 2025, and adjusted SG&A declining by $11 million in Q2 [10] - Despite these efforts, SBH is navigating a challenging macro environment with cautious consumer spending and softness in hair care categories [11] - The Zacks Consensus Estimate for SBH's fiscal 2025 EPS suggests a year-over-year growth of 3.6%, with estimates remaining unchanged at $1.75 [14] Comparative Analysis - EWCZ's forward P/E ratio is 7.51X, higher than SBH's 5.52X, indicating a market premium for EWCZ's growth potential [17] - EWCZ is better positioned for long-term growth due to its franchise-based model and digital marketing execution, while SBH's strengths in owned brands and cost control may be limited by softer category trends [19]

Core Insights - Monoprix and the Zouari family are planning to franchise 27 Monop' stores in Paris and the Île-de-France region as part of Monoprix's strategy to enhance sales momentum and accelerate development with a long-term partner [1][3] - The project includes a renovation plan to modernize the stores to meet the latest Monop' concept standards, with no job losses anticipated [2] - Philippe Palazzi, CEO of Casino Group and Chairman of Monoprix, emphasized that this partnership aligns with the strategy of revitalizing the store network and developing the franchise model [3] Company Overview - Monoprix, a brand under Casino Group, has been transforming urban convenience retailing for over 90 years, operating 625 stores and an e-commerce site [3] - The company reported net sales of €4 billion in 2023, showcasing its robust market presence [3]

Business Model & Growth Strategy - Mixue's average transaction value is less than 8 yuan, but annual revenue exceeds 10 billion yuan [1] - Mixue has 36,000 chain stores globally, ranking fourth worldwide, surpassing many established brands [2][17] - The company focuses on the market below 10 yuan, establishing a unique presence through affordability [3] - Mixue achieved rapid growth by building its own warehousing and logistics center, offering free transportation to franchisees [15][16] - By the end of 2020, the number of stores exceeded 10,000, and by the end of 2021, it exceeded 20,000 [16] Supply Chain Management - Mixue was one of the first in the milk tea industry to build its own central factory in 2012 [12] - The company reduces costs by building factories in the place of origin, such as Snow King Agriculture in Anyue County, Sichuan, for Eureka lemons [13][14] - Upstream ingredients cover 35 countries, including milk from New Zealand, cocoa from Ghana, and cheese from Denmark [16] - 98% of Mixue's revenue in the first three quarters of 2023 (over 15 billion yuan) comes from sales of goods and equipment to franchisees [18] Brand Building & IP Strategy - Mixue created the Snow King IP to build brand perception, avoiding celebrity endorsements [24] - In 2019, they designed a theme song for Snow King, which became popular with over 30,000 stores playing it [25] - Mixue launched an animation called Snow King Arrives, with views exceeding 200 million and a rating of 9.9% on Bilibili [25] - The company established Snow King Loves Animation to further develop its IP through movies, performances, and cultural communication [27][33] Market Position & Future Challenges - Mixue is the largest ready-made tea drink in the Southeast Asian market [17] - The company's cooperation model with franchisees, selling products without sharing profits, may need to be adjusted for long-term development [20][21] - Challenges include expanding into developed countries and maintaining its leading position in the competitive milk tea industry [35]