TH International reports Q2 2026 revenue decline, hosts earnings call

TH International (NASDAQ: THCH ) released second-quarter financial results and hosted an earnings call on Tuesday.

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View the webcast at Summary TH International Limited reported a decline in Q2 2026 revenues to RMB 273.4 million, down 21.7% year-over-year, primarily due to store closures and a 17.8% decrease in same-store sales growth.

The company launched 27 new products during the quarter, emphasizing product innovation and strengthening its all-day dining proposition.

Digital orders increased to 91.8% of total orders in Q2 2026, up from 90.4% in Q2 2025, as the company enhanced its digital capabilities.

Cost optimization measures led to reductions in food and packaging costs by 1.8 percentage points, and additional decreases in rental and payroll expenses.

The company secured a US$15.8 million tranche from a US$55 million financing deal to support innovation, marketing, and store network expansion.

The CEO emphasized a strategic focus on product innovation, enhancing operational excellence, and optimizing store networks by closing underperforming locations and expanding in top-tier cities.

Management plans to increase marketing spending in the second half of 2026 to drive customer traffic and support revenue growth.

Competition from new entrants in the coffee market was acknowledged, with a strategic emphasis on delivering superior product offerings and value to customers.

Full Transcript OPERATOR Ladies and gentlemen, welcome to Tims China's second quarter 2026 earnings conference call.

All participants will be in listen-only mode during management's prepared remarks, and then there will be a question-and-answer session to follow.

Today's conference is being recorded.

At this time, I would like to turn the call over to Pati Yu, Tims China's Public and Media Relations Manager, for prepared remarks and introductions.

Please go ahead.

Pati Yu, Public and Media Relations Manager Hello everyone, and thank you for joining us on today's call.

TH International Limited announced its second quarter 2026 financial results earlier today.

A press release, as well as a company presentation which includes operational and financial highlights, are now available on the IR website at ir.teamchina.com.

Today you will hear from John Chen, our CEO, and Albert Lee, our CFO.

After the company's prepared remarks, the management team will conduct a question-and-answer session.

You will find the webcast of today's earnings call on our IR website.

Before we get started, I'd like to remind you that our earnings presentation and investor materials contain forward-looking statements, which are subject to future events and uncertainty.

Statements that are not historical facts, including but not limited to statements about the company's beliefs and expectations, are forward-looking statements.

Forward-looking statements involve inherent risks and uncertainty, and our actual results may differ materially from those forward-looking statements.

All forward-looking statements should be considered in conjunction with the cautionary statements in our earnings release and risk factors included in our filings with the SEC.

This presentation also includes certain non-GAAP financial measures which we believe can be helpful in evaluating our performance.

However, those measures should not be considered a substitute for the comparable GAAP measures.

The accompanying reconciliation information related to those non-GAAP and GAAP measures can be found in our earnings press release issued earlier today.

With that said, I would now like to turn it over to John Chen, our CEO.

Please go ahead, John.

John Chen, CEO Well, thank you, Pati.

Good morning, good evening everyone.

Thank you for joining us today.

Tim Hortons is one of the world's top 10 most valuable restaurant brands, and China represents one of the most compelling consumer markets.