TH International (THCH) Q1 2024 earnings summary

Executive summary

• Total revenues increased 3.1% year-over-year to RMB346.8 million (USD48.0 million) for Q1 2024.

• System sales grew 7.1% year-over-year to RMB363.5 million (USD50.3 million).

• Registered loyalty club members reached 20.3 million, up 63.6% year-over-year.

• Net new store openings totaled 5, with 19 new franchised Tims stores and 1 new Popeyes company store.

• Continuous product innovation with 14 new beverages and 18 new food products launched.

Financial highlights

• Adjusted store EBITDA was RMB6.1 million (USD0.8 million), up 2.0% year-over-year; margin improved to 2.0%.

• Operating loss was RMB129.4 million (USD17.9 million), slightly improved from RMB130.4 million last year.

• Adjusted corporate EBITDA loss narrowed to RMB53.6 million (USD7.4 million) from RMB74.6 million; margin improved to -15.4% from -22.2%.

• Net loss was RMB142.8 million (USD19.8 million), improved from RMB174.5 million; adjusted net loss was RMB97.8 million (USD13.6 million), margin improved to -28.2%.

• Basic and diluted net loss per share was RMB0.90 (USD0.12); adjusted net loss per share was RMB0.62 (USD0.10).

Outlook and guidance

• Management targets achieving first quarterly adjusted corporate EBITDA breakeven in 2024.

• Focus remains on profitable, capital-efficient growth, optimizing store economics, and expanding made-to-order food model.