Education
About Us
Working with TipRanks
Follow Us
TH International (THCH)
NASDAQ:THCH
Top Page
TH International
(NASDAQ:THCH)
Rating:41Neutral
Price Target:
$2.50
▲(2.04% Upside)
Positive Factors
Store Expansion
The expansion into 98 cities and conversion of over 400 stores strengthens market presence and supports long-term growth by increasing brand visibility and customer reach.
Loyalty Program Growth
The growth in loyalty memberships enhances customer retention and engagement, providing a stable revenue base and opportunities for upselling and cross-selling.
Digital Order Metrics
The increase in digital orders indicates successful adaptation to consumer preferences, improving operational efficiency and customer convenience, which can drive sales.
Negative Factors
Financial Instability
Negative equity and high financial leverage indicate significant insolvency risk, limiting the company's ability to invest in growth and weather economic downturns.
Cash Flow Deficits
Persistent negative cash flow highlights liquidity challenges, restricting the company's ability to cover expenses and invest in strategic initiatives, threatening long-term viability.
Operational Costs
Rising delivery and operational costs can erode profit margins, necessitating cost management strategies to maintain financial health and competitive pricing.
TH International (THCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$83.48M
Dividend YieldN/A
Average Volume (3M)20.40K
Price to Earnings (P/E)―
Beta (1Y)0.10
Revenue Growth-12.77%
EPS Growth52.05%
CountryUS
Employees2,367
SectorConsumer Cyclical
Sector Strength75
IndustryRestaurants
Share Statistics
EPS (TTM)-0.33
Shares Outstanding33,193,190
10 Day Avg. Volume11,689
30 Day Avg. Volume20,396
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap3.94
Enterprise Value/Revenue0.23
Enterprise Value/Gross Profit0.96
Enterprise Value/Ebitda-1.05
Forecast
1Y Price Target
$2.50Price Target Upside2.04% Upside
Rating ConsensusHold
Number of Analyst Covering1
TH International Business Overview & Revenue Model
Company DescriptionTH International Limited operates Tim Hortons coffee shops in mainland China, Hong Kong, and Macau. As of September 28, 2022, it had approximately 460 coffee shops across the People's Republic of China. The company was incorporated in 2018 and is based in Shanghai, the People's Republic of China. TH International Limited is a subsidiary of Tim Hortons Inc.
How the Company Makes MoneyTH International makes money primarily through the sale of food and beverages at its Tim Hortons locations in China. The company generates revenue by offering a wide range of products, including coffee, donuts, pastries, sandwiches, and other fast-casual dining options. Additionally, TH International benefits from strategic partnerships and franchise agreements, which allow for expanded reach and consistent brand presence across the market. The company's earnings are influenced by factors such as store traffic, customer preferences, and the overall economic environment in the regions where it operates.
TH International Earnings Call Summary
Earnings Call Date:Aug 26, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call revealed a mix of positive developments and challenges. While the company saw significant growth in food revenue, loyalty memberships, and digital orders, it faced setbacks with decreased company-owned store revenues and increased operational costs such as rental and delivery expenses. There is optimism about the company's ability to improve same-store sales and operational efficiencies moving forward.Q2-2025 Updates
Positive Updates
Food Revenue Increase
Food revenue increased by 8.6% year over year, and food revenue contribution as a percentage of sales reached a historical high of 35.2%, up from 32.5% in 2024.
Profits from Other Revenues
Profits from other revenues achieved a year-over-year increase of 110.3%.
Expansion of Store Footprint
Expanded store footprint into 98 cities with over 400 stores converted since the launch of the franchisee program in December 2023.
Growth in Loyalty Membership
Registered loyalty club members reached 26.2 million, reflecting a 22.4% year-over-year growth.
Improved Digital Order Metrics
Digital orders as a percentage of total orders rose to 90.4% in Q2 2025, up from 86.5% in Q2 2024.
Reduction in General and Administrative Expenses
General and administrative expenses decreased by 5.2% year over year.
Negative Updates
Decrease in Company-Owned Store Revenues
Company-owned and operated store revenues dropped by 12.5% year over year, primarily due to the planned closure of underperforming stores and a 3.6% decrease in same-store sales growth.
Increase in Rental and Property Management Fees
Rental and property management fees as a percentage of revenues increased by 0.9 percentage points.
Increase in Delivery Costs
Delivery costs rose by 1.8 percentage points to 11.8% in 2025 compared to 10% in 2024 due to a higher delivery revenue mix.
Company Guidance
During TH International Limited's Second Quarter 2025 Earnings Conference Call, the company provided guidance on several key metrics. The company reported a food revenue increase of 8.6% year over year, with food revenue contributing 35.2% of sales, up from 32.5% in 2024. System sales grew by 1.4%, and profits from other revenues surged by 110.3% year over year. The company has returned to positive adjusted corporate EBITDA, reducing adjusted net losses by 16.2%. Store expansion was notable, with the company operating in 98 cities and receiving over 8,100 franchise applications, converting over 400 stores by Q2's end. The registered loyalty club membership grew by 22.4% to 26.2 million members. Despite a 12.5% drop in company-owned store revenues due to strategic closures, franchised business revenues increased by 50.7%. The company improved its store contribution margin and adjusted corporate EBITDA margin by 2.7 and 2.8 percentage points, respectively. They also enhanced digital orders, reaching a record 90.4% of total orders. Looking ahead, TH International Limited aims to open around 200 franchise stores in 2025, focusing on sustainable growth and profitability.TH International Financial Statement Overview
Summary
TH International faces severe financial challenges with consistent net losses, negative equity, and cash flow deficits. Despite revenue growth, the company's financial instability and insolvency risks are significant concerns.Income Statement
TH International's income statement reveals significant challenges, with consistent net losses over recent years, including a net income of -$412 million in 2024. The company has not achieved profitability, as indicated by negative EBIT and EBITDA margins. Although revenue has grown from $212 million in 2020 to $1.39 billion in 2024, the net losses suggest inefficiencies and high operational costs, impacting overall financial health.20
Very Negative
Balance Sheet
The balance sheet shows concerning financial leverage, with a debt-to-equity ratio that is undefinable due to negative stockholders' equity of -$840 million in 2024. Total liabilities exceed total assets, indicating insolvency risk. Equity has declined significantly over the years, highlighting financial instability and raising concerns about the company's long-term sustainability.15
Very Negative
Cash Flow
The cash flow analysis indicates negative operating cash flow, with -$39 million in 2024, and persistent negative free cash flow, impacting liquidity. The company struggles to generate positive cash flow from operations, suggesting challenges in covering expenses and investing in growth opportunities. This cash flow deficit highlights the need for strategic adjustments to improve financial operations.25
Negative
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.39B | 1.58B | 1.01B | 643.37M | 212.08M |
| Gross Profit | 213.56M | 417.16M | 33.05M | 13.81M | 6.62M |
| EBITDA | -266.19M | -686.50M | -431.72M | -302.90M | -115.22M |
| Net Income | -412.08M | -876.25M | -910.17M | -378.05M | -142.00M |
Balance Sheet | |||||
| Total Assets | 1.56B | 2.22B | 2.64B | 1.28B | 580.36M |
| Cash, Cash Equivalents and Short-Term Investments | 161.37M | 227.00M | 611.45M | 390.84M | 174.87M |
| Total Debt | 1.88B | 1.87B | 1.77B | 522.42M | 0.00 |
| Total Liabilities | 2.40B | 2.64B | 2.53B | 945.80M | 147.31M |
| Stockholders Equity | -840.89M | -427.21M | 108.85M | 335.54M | 428.29M |
Cash Flow | |||||
| Free Cash Flow | -142.51M | -488.53M | -621.86M | -580.28M | -290.52M |
| Operating Cash Flow | -39.67M | -196.13M | -286.93M | -244.97M | -145.77M |
| Investing Cash Flow | -8.04M | 60.00M | -705.17M | -335.28M | -144.75M |
| Financing Cash Flow | 26.00M | 80.83M | 827.16M | 798.00M | 221.12M |
TH International Technical Analysis
Negative
2.45
Price Trends
2.73
Negative
2.75
Negative
3.01
Negative
Market Momentum
-0.06
Negative
39.01
Neutral
47.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For THCH, the sentiment is Negative. The current price of 2.45 is below the 20-day moving average (MA) of 2.53, below the 50-day MA of 2.73, and below the 200-day MA of 3.01, indicating a bearish trend. The MACD of -0.06 indicates Negative momentum. The RSI at 39.01 is Neutral, neither overbought nor oversold. The STOCH value of 47.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for THCH.
TH International Risk Analysis
TH International disclosed 88 risk factors in its most recent earnings report. TH International reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
TH International Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $49.50M | 11.83 | 6.88% | 2.07% | 8.83% | 41.90% | |
61 Neutral | $18.09B | 12.97 | -1.60% | 2.98% | 1.42% | -15.92% | |
55 Neutral | $110.51M | ― | 92.02% | ― | -3.09% | -30.16% | |
47 Neutral | $82.34M | ― | -7.81% | ― | 96.64% | -292.65% | |
44 Neutral | $35.95M | ― | 38.50% | 154.08% | 0.96% | -57.29% | |
41 Neutral | $30.56M | ― | -978.37% | ― | -1.23% | -68.38% | |
41 Neutral | $83.48M | ― | ― | -12.77% | 52.05% |
* Consumer Cyclical Sector Average
Performance Comparison
THCH
TH International
2.45
-0.71
-22.47%
BDL
Flanigan's Enterprises
26.63
1.24
4.88%
RRGB
Red Robin Gourmet
6.80
3.54
108.59%
NDLS
Noodles & Co
0.65
-0.75
-53.57%
STKS
The ONE Group Hospitality
2.67
-0.79
-22.83%
FAT
Fat Brands
1.96
-0.65
-24.90%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.