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Th International Limited (THCH)
:THCH
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TH International
(NASDAQ:THCH)
Rating:40Neutral
Price Target:
$2.50
▲(0.81% Upside)
TH International (THCH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$82.32M
Dividend YieldN/A
Average Volume (3M)13.63K
Price to Earnings (P/E)―
Beta (1Y)0.14
Revenue Growth-14.11%
EPS Growth54.77%
CountryUS
Employees2,367
SectorConsumer Cyclical
Sector Strength66
IndustryRestaurants
Share Statistics
EPS (TTM)-0.03
Shares Outstanding33,193,190
10 Day Avg. Volume20,048
30 Day Avg. Volume13,630
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap4.52
Enterprise Value/Revenue0.26
Enterprise Value/Gross Profit1.08
Enterprise Value/Ebitda-1.19
Forecast
1Y Price Target
$2.50Price Target Upside0.81% 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:Jun 24, 2025
(Q4-2024)
| % Change Since: -10.14%|
Next Earnings Date:Aug 26, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant milestones in store expansion, profitability improvements, and loyalty program growth. However, there were notable declines in total revenue and same-store sales growth, which contributed to a decrease in the company's cash position.Q4-2024 Updates
Positive Updates
Store Expansion Milestone
Reached the grand opening of the 1,000th store in Shanghai, marking a significant moment in national expansion.
Improved Profitability
Company-owned and operated store contribution margin improved by 5.3 percentage points and adjusted corporate EBITDA margin improved by 9.9 percentage points year-over-year.
Loyalty Program Growth
Registered loyalty club members exceeded 24 million, reflecting a 29.7% year-over-year growth.
Successful Franchise Model
Received over 6,200 subfranchisee applications and successfully opened around 100 stores by the end of 2024.
Product Innovation Impact
Launched 92 new products in 2024, contributing approximately 25% of top line sales.
Negative Updates
Decline in Total Revenues
Total revenues and system sales dropped by 10.8% and 6.2% year-over-year, respectively.
Same-Store Sales Decrease
Same-store sales growth for system-wide stores decreased by 15.8%.
Cash Position Decline
Total cash and cash equivalents decreased from RMB 219.5 million to RMB 184.2 million by the end of 2024.
Company Guidance
In the recent Tims China Fourth Quarter 2024 Earnings Conference Call, the company provided a comprehensive overview of its strategic and financial performance. The company highlighted significant milestones, including the grand opening of its 1,000th store and the expansion into 82 cities. Tims China reported enhancements in operational efficiencies, with a 5.3 percentage point improvement in company-owned and operated store contribution margin and a 9.9 percentage point increase in adjusted corporate EBITDA margin year-over-year. Product innovation was emphasized, with 92 new products launched in 2024, contributing approximately 25% to top-line sales. The company's loyalty program saw membership grow by 29.7% to over 24 million registered members. Despite a 10.8% drop in total revenues, Tims China maintained focus on improving financial performance and driving efficiencies, aiming for corporate EBITDA breakeven in 2025. The sub-franchisee business showed robust growth, with revenues increasing by 105.3% as the number of franchised stores rose to 446 by year-end. The company also highlighted the successful introduction of new healthy food options and all-day solutions to boost sales across different meal periods.TH International Financial Statement Overview
Summary
TH International's financial performance is severely challenged, with persistent net losses, negative equity, and cash flow deficits. These factors indicate financial instability and insolvency risks, necessitating a strategic overhaul.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
2.48
Price Trends
2.80
Negative
2.75
Negative
3.08
Negative
Market Momentum
-0.09
Positive
35.12
Neutral
14.74
Positive
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 2.48 is below the 20-day moving average (MA) of 2.69, below the 50-day MA of 2.80, and below the 200-day MA of 3.08, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 35.12 is Neutral, neither overbought nor oversold. The STOCH value of 14.74 is Positive, 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 |
|---|---|---|---|---|---|---|---|
64 Neutral | $57.25M | 13.25 | 6.88% | 1.77% | 8.83% | 41.90% | |
61 Neutral | $17.16B | 12.39 | -5.32% | 3.05% | 1.51% | -15.30% | |
55 Neutral | $119.28M | ― | 92.02% | ― | -3.09% | -30.16% | |
45 Neutral | $33.95M | ― | 38.50% | 161.50% | 0.96% | -57.29% | |
40 Neutral | $82.32M | ― | ― | -14.11% | 54.77% | ||
39 Underperform | $33.30M | ― | -978.37% | ― | -1.23% | -68.38% | |
39 Underperform | $83.27M | ― | -7.81% | ― | 96.64% | -292.65% |
* Consumer Cyclical Sector Average
Performance Comparison
THCH
TH International
2.47
-1.12
-31.20%
BDL
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31.00
5.80
23.02%
RRGB
Red Robin Gourmet
6.21
2.20
54.86%
NDLS
Noodles & Co
0.73
-0.81
-52.60%
STKS
The ONE Group Hospitality
2.84
-1.07
-27.37%
FAT
Fat Brands
1.87
-0.96
-33.92%
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.