Q2 2026 TH International Ltd Earnings Call Transcript
Key Points
- TH International Ltd (THCH) successfully closed the initial tranche of USD15.8 million in additional senior secured convertible notes from its brand owner, Tim Hortons Restaurant International GMBH, as part of a USD55 million financing series to support innovation and marketing.
- The company's loyalty program showed strong growth, with registered members exceeding 37.1 million, a 41.7% year-over-year increase, and average members per store surpassing 36,000.
- TH International Ltd (THCH) reduced food and packaging costs as a percentage of company-owned store revenue by 1.8 percentage points year-over-year, from 30.1% to 28.3%, due to supply chain efficiencies.
- The company continued to enhance its digital capabilities, with digital orders rising to 91.8% of total orders in Q2 2026, up from 90.4% in the prior year.
- TH International Ltd (THCH) launched 27 new products during the quarter, including 20 beverages and 7 food items, to enrich its all-day dining menu and strengthen its product portfolio.
- TH International Ltd (THCH) experienced a significant decline in total revenues, dropping 21.7% year-over-year to RMB273.4 million, and system sales fell 15.1% to RMB347.8 million.
- Same-store sales growth was negative 17.8% in Q2 2026, driven by a 16.3% decline in comparable transactions and a 1.5% decrease in average ticket size.
- The company's company-owned and operated store contribution margins decreased to 5.7% in Q2 2026, down from 9.6% in the same quarter of 2025, due to higher rental, payroll, and delivery costs as a percentage of revenue.
- Adjusted corporate EBITDA margin turned negative at -7.6% in Q2 2026, compared to a positive 0.6% in the prior year, reflecting increased G&A expenses and lower revenue.
- TH International Ltd (THCH) saw a decline in monthly average transacting customers to 2.85 million in Q2 2026, down from 3.59 million in Q2 2025, and net new store openings were minimal at just two, with closures of underperforming stores.
Ladies and gentlemen, and welcome to the Tims China's second quarter 2026 earnings conference call. (Operator Instructions) Today's conference is being recorded.
At this time, I would like to turn the call over to Patty Yu, Tims 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 announces second quarter 2026 financial results earlier today a press release, that includes at the company's presentation, which includes operational and financial highlights are now available on the company's IR website at ir.timschina.com.
Today, you will hear from Mr. Yongchen, our CEO; and Albert Li 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 would like to remind you that our earnings
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