- Earnings per Share (EPS) of -$0.31, missing estimates.
- Actual revenue of approximately $50.3 million, below expectations.
- Year-over-year system sales increase of 12.8%.
TH International Limited, known as Tims China, trades on the NASDAQ:THCH. It operates Tim Hortons coffee shops in China. On December 9, 2025, THCH reported its earnings before the market opened. The company had an earnings per share (EPS) of -$0.31, which was lower than the estimated EPS of -$0.14. Additionally, THCH’s actual revenue was approximately $50.3 million, falling short of the estimated $55.5 million.
Despite these challenges, Tims China saw a 12.8% year-over-year increase in system sales, reaching RMB419.9 million. The company also reported a positive same-store sales growth of 3.3% for its owned and operated stores. However, total revenues slightly decreased by 0.4% from the same quarter in 2024, amounting to RMB358.0 million, or approximately USD50.3 million.
Tims China ended the quarter with 27.9 million registered loyalty club members, marking a 22.3% increase compared to the previous year. The company also reported a net opening of 15 new stores, which includes 38 new made-to-order (MTO) stores and the closure of 23 non-MTO stores, including seven Tims Express locations.
Financially, THCH faces challenges. The company has a negative price-to-earnings ratio of -1.66 and an earnings yield of -0.60, indicating it is not currently profitable. The enterprise value to operating cash flow ratio is significantly negative at -49.41, highlighting potential issues with cash flow generation.
The debt-to-equity ratio is negative at -1.90, suggesting a higher level of debt compared to equity, which may raise concerns about financial stability. Additionally, the current ratio is low at 0.26, indicating potential liquidity issues in meeting short-term obligations. Despite these financial hurdles, the company continues to expand its presence in China.
