TH International (THCH) Q4 2025 earnings summary

Executive summary

• System sales grew 7.6% year-over-year to RMB 1.57 billion in 2025, with 25 net new store openings and a total of 1,047 stores across 92 cities.

• Loyalty club membership reached 31 million, up 29% year-over-year, and digital orders accounted for 89.3% of total orders.

• Over 10,000 franchise applications since December 2023, with 300+ new franchise stores opened by year-end 2025.

• Food sales rose to 33.4% of Q4 2025 revenues, and orders with food items reached 51% of total orders.

• System sales outpaced total revenue growth, reflecting a strategic shift toward franchising and digital engagement.

Financial highlights

• Q4 2025 system sales grew 4.0% year-over-year to RMB 359.4 million, while total revenues declined 7.3% to RMB 308.5 million.

• Full-year company-owned store contribution margin was 7% (down from 7.4% in 2024), with 2024 vintage stores achieving nearly 15% margin.

• Adjusted corporate EBITDA margin improved by 1 percentage point for the full year and by 3.3 percentage points in Q4 year-over-year.

• Food and packaging costs as a percentage of revenue from company-owned stores decreased by 1.4 percentage points year-over-year, reaching 29.4% in Q4 and 30.1% for FY 2025.

• Adjusted general and administrative expenses as a percentage of total revenues decreased by 7.4 percentage points year-over-year, reaching 13.5% for FY 2025.

• Cash and equivalents stood at RMB 129.7 million as of December 31, 2025.

Outlook and guidance

• Targeting net store openings of at least 100 in 2026, including both company-owned and franchise stores.

• Plans to further reduce food and packaging costs by 1–2 percentage points in 2026.

• Focus on expanding high-margin franchise stores in special channels such as railway stations, hospitals, and highway rest areas.

• Near-term priorities include expanding store-level profitability, improving adjusted corporate EBITDA margins, and accelerating franchising.