TH International (THCH) AI Stock Analysis

• Market Cap: $81.66M
• Dividend Yield: N/A
• Average Volume (3M): 13.18K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.02
• Revenue Growth: -12.77%
• EPS Growth: 52.05%
• Country: US
• Employees: 2,367
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.33
• Shares Outstanding: 33,193,190
• 10 Day Avg. Volume: 8,295
• 30 Day Avg. Volume: 13,181
• PEG Ratio: 0.04
• Price to Book (P/B): -1.00
• Price to Sales (P/S): 0.60
• P/FCF Ratio: -5.90
• Enterprise Value/Market Cap: 4.03
• Enterprise Value/Revenue: 0.25
• Enterprise Value/Gross Profit: 1.48
• Enterprise Value/Ebitda: -1.48
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 45 Neutral
• Price Target: $2.50 ▲(4.17% Upside)

TH International's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues, persistent losses, and a highly leveraged balance sheet. While the earnings call highlighted some positive trends, such as increased food revenue and digital orders, these are overshadowed by the company's financial instability and valuation concerns. Technical analysis suggests limited momentum, further contributing to the cautious outlook.

TH International Business Overview & Revenue Model

Company Description

TH International (THCH) is a prominent player in the food and beverage sector, specializing in the development, operation, and franchising of fast-casual dining concepts. The company is best known for its flagship brand, which focuses on providing high-quality, innovative menu options that cater to evolving consumer tastes. THCH operates in various international markets, leveraging its expertise in brand management and restaurant operations to expand its footprint and enhance customer experiences.

How the Company Makes Money

TH International generates revenue primarily through the franchising of its restaurant brands, where franchisees pay initial franchise fees and ongoing royalties based on their sales. Additionally, the company earns income from corporate-owned restaurant locations, which contribute directly to its sales figures. Significant partnerships with suppliers and distributors also play a vital role in enhancing profitability, as they allow THCH to negotiate favorable terms and reduce costs. Furthermore, the company may benefit from promotional collaborations and marketing agreements that help drive brand awareness and customer traffic to its locations.

TH International Financial Statement Overview

Summary

TH International is facing significant financial challenges. The income statement shows declining revenues and persistent losses, with negative net profit and EBIT margins. The balance sheet is highly leveraged with negative equity, indicating financial distress. Although there is some improvement in cash flow, the company still faces operational cash deficits. Overall, the financial performance reflects a struggling business with limited financial flexibility.

Income Statement

TH International's income statement reveals significant challenges. The company has experienced declining revenue growth, with a negative growth rate of -1.31% in the TTM period. Profitability metrics are concerning, with a negative net profit margin of -26.37% and a negative EBIT margin of -25.59%. These figures indicate substantial losses and operational inefficiencies. The gross profit margin is relatively low at 16.56%, suggesting limited pricing power or high cost of goods sold. Overall, the income statement reflects a struggling business with declining revenues and persistent losses.

Balance Sheet

The balance sheet of TH International shows a precarious financial position. The company has a negative stockholders' equity, resulting in a negative debt-to-equity ratio of -1.90, indicating that liabilities exceed assets. This high leverage poses a significant risk to financial stability. The return on equity is positive at 41.67%, but this is primarily due to the negative equity base rather than operational success. The equity ratio is also negative, further highlighting the company's financial distress. Overall, the balance sheet suggests a highly leveraged company with limited financial flexibility.

Cash Flow

TH International's cash flow statement indicates some improvement, but challenges remain. The free cash flow growth rate is positive at 250.24%, suggesting better cash management compared to previous periods. However, the operating cash flow is negative, and the operating cash flow to net income ratio is -0.03, indicating that the company is not generating sufficient cash from operations to cover its losses. The free cash flow to net income ratio is 1.0, suggesting that all free cash flow is being used to cover net losses. Overall, while there are signs of improvement, the cash flow situation remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.34B	1.39B	1.58B	1.01B	643.37M	212.08M
Gross Profit	222.16M	213.56M	417.16M	33.05M	13.81M	6.62M
EBITDA	-222.41M	-266.19M	-686.50M	-431.72M	-297.64M	-115.22M
Net Income	-353.89M	-412.08M	-876.25M	-742.65M	-381.72M	-142.00M
Balance Sheet
Total Assets	1.39B	1.56B	2.22B	2.64B	1.28B	580.36M
Cash, Cash Equivalents and Short-Term Investments	155.22M	161.37M	225.72M	611.45M	395.00M	180.35M
Total Debt	1.84B	1.88B	1.87B	1.77B	522.42M	0.00
Total Liabilities	2.35B	2.40B	2.64B	2.53B	945.80M	147.31M
Stockholders Equity	-968.75M	-840.89M	-427.21M	108.85M	335.54M	428.29M
Cash Flow
Free Cash Flow	-46.02M	-142.51M	-488.53M	-621.86M	-580.28M	-290.52M
Operating Cash Flow	-46.02M	-39.67M	-196.13M	-286.93M	-244.97M	-145.77M
Investing Cash Flow	-32.73M	-8.04M	60.00M	-705.17M	-335.28M	-144.75M
Financing Cash Flow	87.89M	26.00M	80.83M	827.16M	798.00M	221.12M

TH International Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.40
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 2.4 is below the 20-day moving average (MA) of 2.53, below the 50-day MA of 2.55, and below the 200-day MA of 2.79, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 39.44 is Neutral, neither overbought nor oversold. The STOCH value of 34.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for THCH.

TH International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
RAVE	―	$35.96M	13.59	20.12%	―	-1.30%	9.43%
GENK	―	$98.80M	―	-5.04%	1.00%	10.67%	-181.88%
FAT	―	$32.50M	-0.14	―	170.62%	0.96%	-57.29%
THCH	―	$81.66M	-1.63	―	―	-12.77%	52.05%
STKS	―	$74.91M	―	-7.81%	―	96.64%	-292.65%
RRGB	―	$92.77M	―	―	―	-3.09%	-30.16%

TH International Corporate Events

Tims China Reports Q2 2025 Financial Results with Positive EBITDA and Growth in Loyalty Membership

On August 26, 2025, Tims China announced its financial results for the second quarter of 2025, highlighting a 1.4% year-over-year increase in system sales to RMB409.5 million and a positive adjusted corporate EBITDA of RMB2.2 million. Despite a 4.9% decrease in total revenues from the same quarter in 2024, the company reported a significant growth in its loyalty club membership, reaching 26.2 million members, a 22.4% increase year-over-year. The company also achieved a historical high in food revenue contribution as a percentage of system sales, reflecting the success of its ‘Light & Fit Lunch Box’ platform. However, the quarter also saw a net closure of nine stores, with a decrease in revenues from company-owned stores due to underperforming store closures and a decline in same-store sales growth.

TH International Announces Board Resignation of Meizi Zhu

TH International Limited, a company based in Shanghai, China, announced the resignation of Meizi Zhu from its board of directors, effective August 7, 2025. Zhu has been recognized for her significant contributions and leadership over the past six years, which have been instrumental in the company’s growth. The company has decided not to fill her vacated position on the board at this time.