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SHANGHAI, China and NEW YORK, USA – TH International Limited, the exclusive operator of Tim Hortons coffee shops in China (“Tims China” or the “Company”) today announced its unaudited financial results for the second quarter 2025. Mr. Yongchen Lu, CEO & Director of Tims China, stated, “In Q2, we reinforced our differentiated ‘Coffee + Freshly Prepared Food’ strategy with the successful launch of ‘Light & Fit Lunch Box’ platform, a series of new combo products for the lunch daypart, to further drive our top-line growth and enhance store unit economics.
Food revenue increased by 8.6% year-over-year, and food revenue contribution as a percentage of system sales reached historical high of 35.2%, an increase of 2.8 percentage points from 32.5% in the second quarter of 2024.
We returned to top-line growth during the quarter, achieving a 1.4% year-over-year increase in system sales. Our sub-franchise and retail businesses continued to deliver steady cash flow and profitability.
Our profits from other revenues achieved a year-over-year increase of 110.3%. At the same time, we returned to positive adjusted corporate EBITDA and reduced adjusted net losses by 16.2% during the quarter.
These achievements underscore Tims China’s successful execution and our unwavering commitment to achieving sustainable, long-term profitable growth.”
Second Quarter 2025 Highlights
- Total revenues of RMB349.0 million (USD48.7 million), representing a 4.9% decrease from the same quarter of 2024.
- System sales¹ of RMB409.5 million (USD57.2 million), representing a 1.4% increase from the same quarter of 2024.
- Net new store closures totaled nine (a net openings of 40 made-to-order (“MTO”) stores and a net closure of 49 non-MTO stores, of which 41 was Tims Express stores).
- Company owned and operated store contribution², previously reported as adjusted store EBITDA, was RMB27.2 million (USD3.8 million), compared to RMB32.4 million in the same quarter of 2024.
- Company owned and operated store contribution margin³, previously reported as adjusted store EBITDA margin, was 9.6%, compared to 10.1% in the same quarter of 2024.
- Achieved positive adjusted corporate EBITDA of RMB2.2 million (USD 0.3 million), compared to RMB3.3 million in the same quarter of 2024.
- Registered loyalty club members totaled 26.2 million members as of June 30, 2025, representing a 22.4% year-over-year growth.
Mr. Dong (Albert) Li, CFO of Tims China, commented, “We continued to demonstrate our ability to further improve our financial performance by refining store unit economics and driving operational efficiencies across both store and corporate levels. In the first half of 2025, we further increased the contribution margin of our company owned and operated stores and adjusted corporate EBITDA margin by 2.7 and 2.8 percentage points year-over-year, respectively.
Specifically, in Q2, our food and packaging costs, labor costs, and other operating expenses (as a percentage of revenues from company owned and operated stores) decreased by 0.8, 1.0 and 0.4 percentage points year-over-year, respectively.”
1 System sales is calculated as the gross merchandise value of sales generated from both company owned and operated stores and franchised stores.
2 Company owned and operated store contribution, is calculated as fully burdened gross profit4 of company owned and operated stores excluding depreciation & amortization.
3 Company owned and operated store contribution margin, is calculated as company owned and operated store contribution as a percentage of revenues from company owned and operated stores.
4 Fully burdened gross profit of company owned and operated stores, the most directly comparable GAAP measure to company owned and operated store contribution, was RMB0.4 million (USD0.1 million) for the three months ended June 30, 2025, compared to RMB1.9 million in the same quarter of 2024.
