THCHNasdaqRetail-Eating PlacesUS GAAP · USD

TH International Ltd

TH International Ltd operates the Tims China business, which develops and runs a quick-service restaurant and coffee chain in mainland China. The company sells food, beverages, and related menu items through company-operated stores and franchised locations, supported by a loyalty program and a national store network.

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Revenue1,316m USD
−5.4 %y/y
Operating profit (EBIT)-317m USD
+9.1 %y/y
EBIT margin-24.1%
+1.0 ppy/y
Net income-434m USD
−5.4 %y/y
Free cash flow-78.3m USD
+45.0 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

-1,000-50005001,0001,5002,000m USD2020: 212 m USD2020: EBIT -141 m USD20202021: 643 m USD2021: EBIT -374 m USD20212022: 1,011 m USD2022: EBIT -581 m USD20222023: 1,576 m USD2023: EBIT -701 m USD20232024: 1,391 m USD2024: EBIT -349 m USD20242025: 1,316 m USD2025: EBIT -317 m USD20251,316-317
RevenueOperating profit (EBIT)
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Business

Share of revenue
Company-operated store sales70 %

Beverages and food sold directly through company-owned Tims stores.

Franchise and royalty revenue20 %

Fees and royalties from franchised restaurant locations and related arrangements.

Food and beverage products8 %

Core menu offerings including coffee, tea, breakfast, and snack items.

Other services and programs2 %

Loyalty and other customer engagement-related income and services.

Customers

The business serves Chinese consumers who buy coffee, tea, breakfast items, and convenience food through its store network. It also serves franchise partners that operate stores under the brand and pay fees and royalties. Loyalty members are an important customer segment because they support repeat visits and deeper engagement with the brand.

Urban consumers

Buy beverages and food in stores for convenience, taste, and brand familiarity.

Breakfast and on-the-go customers

Purchase coffee and quick meals during commuting and morning traffic.

Loyalty club members

Use the loyalty program for repeat purchases, rewards, and engagement.

Franchise partners

Operate Tims-branded stores and generate royalty and fee revenue.

Strategy

The company’s strategic focus is to strengthen the core Tims China brand, improve guest experience, and regain customer traffic. It is also expanding its store network and using the loyalty platform to deepen customer engagement, support repeat purchases, and improve brand reach.

Rebuild the core brand propositionShort term

A clearer product and guest experience is needed to win back customers in a crowded market.

Expand the store networkMedium term

More locations can widen reach and improve brand presence in key Chinese cities.

Deepen customer engagementMedium term

Loyalty members can increase visit frequency and lower reliance on one-time traffic.

Geography

TH International’s business is centered in mainland China, where the Tims brand is built and where most store operations are concentrated. The company is exposed to Chinese consumer demand, local competition, rent, labor, and supply-chain conditions, with performance tied closely to urban restaurant traffic and delivery behavior.

Risks

The business is exposed to demand swings in China’s restaurant and coffee market, where traffic, delivery trends, and consumer preferences can move quickly. Store-level economics also depend on rent, labor, and competition, while franchise and expansion plans require capital and execution discipline.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Same-store sales volatility1Execution risk in store network management2Funding and liquidity dependence3Competitive intensity in China coffee and QSR4
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Same-store sales volatilityImpact: HighLikelihood: High

    Restaurant traffic and delivery demand can change quickly in a competitive market.

    Exposure: Company-operated stores

  2. Execution risk in store network managementImpact: HighLikelihood: High

    The model depends on opening, operating, and closing locations effectively.

    Exposure: Store footprint and unit economics

  3. Funding and liquidity dependenceImpact: HighLikelihood: Medium

    Expansion and operations require ongoing access to capital and support.

    Exposure: Growth plans and balance sheet

  4. Competitive intensity in China coffee and QSRImpact: MediumLikelihood: High

    Brands compete on product, convenience, delivery, and loyalty incentives.

    Exposure: Customer acquisition and retention

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Accounting

Judgemental items
Revenue recognition by stream

Store sales, royalties, and fees are recognized under different patterns and estimates.

Impact: Affects quarterly revenue mix and comparability

Long-lived asset impairment

Underperforming or closed stores may require write-downs.

Impact: Can materially affect operating results

Lease accounting

Restaurant locations are typically leased and create right-of-use assets and liabilities.

Impact: Affects leverage metrics and depreciation/interest expense

Fair value of convertible notes and warrants

Financing instruments can be remeasured at fair value and move with market inputs.

Impact: Can create non-cash volatility in reported earnings

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Last updated: 28/09/2026