TH International Limited (THCH) Earnings Call Transcripts

TH International Limited's Latest Earnings Call - Q1 FY2026

In the first quarter of fiscal year 2026, TH International Limited reported a significant decline in revenue and same-store sales, with total revenues dropping by 14.6% year-over-year. The company is transitioning from a focus on scale growth to prioritizing quality growth, which has led to an 8.3% decline in comparable transactions and a 13.2% drop in same-store sales. Management expressed optimism about recovery in same-store sales in the upcoming quarters, particularly following recent marketing campaigns, and indicated plans to resume net new store openings starting in Q2 2026.

Reported metrics

Guidance from management

Management expects improved same-store sales in Q2 2026 and anticipates resuming net new store openings. They aim to achieve corporate EBITDA breakeven as part of their near-term priorities.

What management said

Yes. No, very good question, Steve. Thank you. Actually, we have seen same-store sales recovering very well recently, especially for the past few weeks after we launched several great marketing campaigns. So I believe we will have better same-store sales in the second quarter, and we expect much better for the rest of the year.

Yes. yes. I mean the -- yes, the tea players has been more aggressive in entering into the coffee sector than before and price very low. And that's exactly I want to highlight our differentiation point. We are not only a coffee player. We offer coffee plus fresh prepared food. That's very different from our peer coffee brand player and also the milk tea players. I mean that's where we are very strong and very differe...

What analysts pressed on

Analysts expressed concerns regarding the competitive landscape, particularly with tea players entering the coffee market with lower-priced offerings. There were questions about the sustainability of same-store sales growth amidst aggressive discounting by delivery aggregators.

Main topics on the call

• Same-Store Sales Decline — TH International experienced a negative 13.2% same-store sales growth in Q1 2026, attributed to a decline in comparable transactions and average ticket size. CEO Yongchen Lu noted, "We have seen same-store sales recoveri...
• Strategic Transition — The company is shifting its focus from scale growth to quality growth, optimizing operations and reducing discount-driven promotions. This strategic adjustment aims to enhance long-term brand building and franchise syste...
• Franchise Growth — The franchise model has shown strong market confidence, with over 10,500 applications and nearly 260 stores opened by the end of Q1 2026. Management highlighted that franchise stores in special channels are expected to a...
• Cost Optimization — The company successfully reduced food and packaging costs as a percentage of revenues from 30.4% in Q1 2025 to 28.4% in Q1 2026, indicating improved operational efficiency. CFO Albert Li stated, "We are committed to impr...

Read the full TH International Limited transcript (Q1 FY2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 14 TH International Limited earnings call transcripts on record, spanning April 6, 2023 to June 9, 2026. Based on this history, TH International Limited reports quarterly. The most recent call on file is dated June 9, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

THCH

Exchange

NasdaqCM

Country

US

Sector

Consumer Discretionary

Industry

Hotels, Restaurants and Leisure

Calls on record

14

First call

April 6, 2023

Most recent

June 9, 2026

Reporting cadence

quarterly