Share your coffee stories with us by writing to info@comunicaffe.com.
SHANGHAI, China, and NEW YORK, USA – TH International Limited, the exclusive operator of Tim Hortons coffee shops in China (“Tims China” or the “Company”), yesterday announced its unaudited financial results for the third quarter 2025. Mr. Yongchen Lu, CEO & Director of Tims China, stated, “In Q3, we returned to positive net new store openings and continued our strong momentum in system sales, achieving a 12.8% year-over-year growth.
With our successful “Light & Fit Lunch Box” platform products launched in Q2, we further enhanced our differentiated “Coffee + Freshly Prepared Food” strategy, driving a 3.3% same-store sales growth for company owned and operated stores. At the same time, our sub-franchise and retail businesses maintained their steady contribution to cash flow and profitability. Profits from other revenues achieved a year-over-year increase of 58.2% during the quarter.”
Mr. Dong (Albert) Li, CFO of Tims China, commented, “We are excited to announce the successful issuance of approximately US$89.9 million senior secured convertible notes due September 2029, the restructuring of our unsecured convertible note due 2027, and the repurchase of all outstanding amount due under our variable rate convertible senior notes due 2026. These strategic transactions enable us to focus on the development of our overall store network and the core Tim Hortons brand nationwide.”
Third Quarter 2025 Highlights
- Total revenues of RMB358.0 million (USD50.3 million), representing a 0.4% decrease from the same quarter of 2024.
- System sales¹ of RMB419.9 million (USD59.0 million), representing a 12.8% increase from the same quarter of 2024.
- Net new store openings totaled 15 (a net openings of 38 made-to-order (“MTO”) stores and a net closure of 23 non-MTO stores, of which seven were Tims Express stores).
- Same-store sales growth for company owned and operated stores was positive 3.3%.
- Same-store sales growth for system-wide stores was positive 1.3%.
- Company owned and operated store contribution², previously reported as adjusted store EBITDA, was RMB21.8 million (USD3.1 million), compared to RMB39.9 million in the same quarter of 2024.
- Company owned and operated store contribution margin³, previously reported as adjusted store EBITDA margin, was 7.7%, compared to 13.3% in the same quarter of 2024.
- Registered loyalty club members totaled 27.9 million members as of September 30, 2025, representing a 22.3% year-over-year growth.
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 a loss of RMB4.8 million (USD0.7 million) for the three months ended September 30, 2025, compared to a profit of RMB10.1 million in the same quarter of 2024.
