Q2 2025 TH International Ltd Earnings Call Transcript
Key Points
- TH International Ltd (THCH) achieved a 1.4% year-over-year increase in system sales during the quarter.
- Food revenue increased by 8.6% year-over-year, with food revenue contribution reaching a historical high of 35.2% of sales.
- The company returned to positive adjusted corporate EBITDA and reduced adjusted net losses by 16.2% during the quarter.
- TH International Ltd (THCH) expanded its store footprint into 98 cities, showcasing market confidence in its franchisee model.
- Registered loyalty club members grew by 22.4% year-over-year, reaching 26.2 million, indicating strong customer engagement.
- Company-owned and operated store revenues dropped by 12.5% year-over-year due to planned closures of underperforming stores.
- Same-store sales growth decreased by 3.6% year-over-year, impacting overall revenue performance.
- Rental and property management fees as a percentage of revenues increased by 0.9 percentage points due to decreased same-store sales volume.
- Delivery costs as a percentage of revenues increased by 1.8 percentage points, driven by a higher delivery revenue mix.
- Marketing expenses as a percentage of total revenues increased by 0.5 percentage points year-over-year, impacting profit margins.
Ladies and gentlemen, welcome to Tim's China's second quarter 2025 earnings conference call. (Operator Instructions) Today's conference is being recorded. At this time, I would like to turn the call over to Gemma Bakx, who heads Tim's China's investor relations efforts for prepared remarks and introductions. Please go ahead, Gemma.
Hello everyone, and thank you for joining us on today's call. My name is Gemma Bakx, Head of Investor Relations, and since China announced its second quarter 2025 financial results earlier today, the press release, as well as an accompanying presentation, which contained operational and financial highlights, are now available on the company's IR website at ir.timschina.com.
Today, you will hear from Yong Chen Liu, our CEO and Director; and Albert Lee, our CFO. After the company's prepared remarks, the management team will conduct a question-and-answer session. You can find a slight presentation in the webcast of today's earnings call on our website.
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