Tims China Announces Third Quarter 2025 Financial Results

Executive Summary

• TH International Limited (Tim Hortons China) reported Q3 2025 unaudited results: system sales up 12.8% YoY to RMB 419.9 M, but total revenues fell 0.4% to RMB 358.0 M and the company posted an operating loss of RMB 65.7 M.
• Net loss from continuing operations narrowed to RMB 73.8 M (USD 10.4 M) versus RMB 87.4 M a year earlier; adjusted net loss improved to RMB 53.8 M.
• The company issued approximately US$89.9 M of senior secured convertible notes due 2029, restructured its 2027 unsecured convertible notes, and repurchased all outstanding variable‑rate convertible notes due 2026.

Key Details

• System Sales: RMB 419.9 M (USD 59.0 M), +12.8% YoY.
• Total Revenues: RMB 358.0 M (USD 50.3 M), –0.4% YoY.
• Net New Store Openings: +15 stores (38 MTO opened, 23 non‑MTO closed).
• Same‑Store Sales Growth:
• Company‑owned & operated: +3.3% YoY.
• System‑wide: +1.3% YoY.
• Company‑Owned Store Contribution: RMB 21.8 M (USD 3.1 M), contribution margin 7.7% (down from 13.3% YoY).
• Operating Loss: RMB 65.7 M (USD 9.2 M) vs. RMB 55.9 M a year ago.
• Adjusted Corporate EBITDA: –RMB 14.97 M (‑4.2% margin), versus a gain of RMB 2.0 M in Q3 2024.
• Net Loss (Continuing Ops): RMB 73.8 M (USD 10.4 M) vs. RMB 87.4 M YoY.
• Adjusted Net Loss: RMB 53.8 M (USD 7.6 M), –15.0% margin, improved from –11.5% a year earlier.
• Liquidity: Cash & cash equivalents at quarter‑end RMB 159.3 M (USD 22.4 M), down from RMB 184.2 M end‑2024.

Financing Details

• Senior Secured Convertible Notes 2029:
• Principal amount ≈ US$89.9 M.
• Conversion price US$2.7822 per share (110% of five‑day VWAP prior to signing).
• Secured by 100% of shares of TH Hong Kong International Ltd and an all‑asset debenture of Tims China.
• Restructuring: Unsecured convertible notes due 2027 extended to Sep 2029; conversion price reset to align with 2025 senior secured notes.
• Repurchase: Completed full repurchase of variable‑rate convertible senior notes due 2026.

Operational Highlights

• Loyalty Club Membership: 27.9 M members (22.3% YoY growth).
• Store Portfolio (Sept 30 2025): Total stores 1,030; company‑owned 551; franchised 479; MTO 730.
• Cost Trends: Delivery costs rose 20.9% YoY to RMB 37.2 M; marketing expenses fell 14.4% to RMB 15.8 M.
• Impairments: Long‑lived asset impairment reduced to RMB 8.0 M from RMB 15.6 M a year ago.

Management Commentary

• CEO Yongchen Lu highlighted positive net new store openings, strong system‑sales growth, and the “Light & Fit Lunch Box” product launch driving same‑store sales.
• CFO Albert Li emphasized that the convertible‑note financing provides capital to expand the store network and focus on core brand development.

Notable Quotes

“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.” – Yongchen Lu, CEO & Director
“These strategic transactions enable us to focus on the development of our overall store network and the core Tim Hortons brand nationwide.” – Albert Li, CFO