Q4 2025 TH International Ltd Earnings Call Transcript
Key Points
- TH International Ltd (THCH) achieved a 7.6% increase in total system sales in 2025, driven by 25 net new store openings and expanding the store network to 1,047 across nine cities in China.
- The company reported a 1 percentage point improvement in full-year adjusted corporate EBITDA margin in 2025.
- Franchisee stores in special channels like railway stations and highway rest areas generated high-teens store contribution margins with an expected payback period of approximately two years.
- Product innovation was a key focus, with 178 new products launched in 2025, contributing over 25% of top-line sales.
- Digital orders accounted for 89.3% of total orders in Q4 2025, up from 86.1% in Q4 2024, indicating strong digital engagement.
- Same-store sales growth declined by 2.4% for system-wide wireless stores in 2025 due to intensified competition and higher discounts on delivery business.
- Company-owned operated stores' contribution margin decreased from 7.4% in 2024 to 7% in 2025, primarily due to increased delivery-related costs.
- Total revenues dropped by 7.3% year-over-year in Q4 2025, mainly due to the closure of certain underperforming stores.
- The company's total cash and cash equivalents decreased from RMB184.2 million in 2024 to RMB129.7 million in 2025, reflecting cash disbursements for business expansion.
- Higher delivery costs impacted store contribution margins, and the company is negotiating with delivery platforms to improve cost structures.
Ladies and gentlemen, welcome to Tims China fourth-quarter and full-year 2025 earnings conference call. (Operator Instructions) Today's conference is being recorded. At this time, I'd like to turn the call over to Patty Yu, Tim China's Public and Media Relations Manager for prepared remarks and introductions. Please go ahead, Patty.
Hello, everyone, and thank you for joining us on today's call. TH International Limited announced its fourth-quarter and full-year 2025 financial results earlier today. A press release as well as an accompanying presentation, which contains operational and financial highlights are now available on the company's IR website at ir.timschina.com.
Today, you will hear from Yongchen Lu, our CEO Director; and Albert Li, our CFO. After the company's prepared remarks, the management team will conduct a question-and-answer session. You will find the webcast of today's earnings call on our IR website.
Before we get started, I'd like to remind you that our
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