The $55M convertible note agreement provides a capital lifeline but adds significant dilution risk. Watch for store-level margin stabilization and same-store sales trends in Q2 2026 as the company resumes net store openings. The widening net loss and cash burn suggest continued operational distress.
Price Chart
Executive Summary
TH International (Tims China) reported Q1 2026 revenue of RMB256.7M ($37.2M), a 14.6% YoY decline, with net loss widening to RMB109.3M ($15.8M) from RMB58.9M a year ago. Same-store sales for company-owned stores fell 12.4% YoY, and the company closed a net 21 stores during the quarter. Management announced a $55M senior secured convertible note agreement with brand owner THRI to fund expansion, but the core operating metrics continue to deteriorate.
Key Financial Metrics
Key Facts
- Total revenues declined 14.6% YoY to RMB256.7M ($37.2M)
- Net loss widened to RMB109.3M ($15.8M) from RMB58.9M in Q1 2025
- Same-store sales for company-owned stores fell 12.4% YoY
- Net store closures totaled 21 (541 company-owned stores vs 569 a year ago)
- Company-owned store contribution margin collapsed to 1.8% from 6.7%
- Cash and equivalents dropped to RMB111.4M ($16.2M) from RMB129.7M at year-end 2025
- Entered definitive agreement for up to $55M additional senior secured convertible notes with THRI
- Basic and diluted loss per share widened to RMB3.38 ($0.49) from RMB1.78
Financial Impact
Revenue decline of 14.6% YoY; net loss increased 85.4% YoY to RMB109.3M; cash burn of RMB23.5M in operating cash flow
Risk Factors
- Further dilution from convertible note conversion
- Continued cash burn with only $16.2M in cash
- Same-store sales decline accelerating to 12.4%
- Store closure program may not be sufficient to stem losses
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3308653 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 7d ago | 6-K | $1.00 | awaiting T+60 | — | $1.12 (+12.00%) |
Sep 10, 2026 6w ago | 6-K | $1.36 | awaiting T+60 | — | $1.12 (+17.65%) |
Aug 18, 2026 9w ago | 6-K | $1.38 | awaiting T+60 | — | $1.12 (+18.84%) |
Aug 18, 2026 9w ago | Press Release | $1.38 | awaiting T+60 | — | $1.12 (+18.84%) |
Aug 11, 2026 10w ago | Press Release | $1.60 | awaiting T+60 | — | $1.12 (−30.00%) |
Jul 7, 2026 15w ago | 6-K | $1.80 $1.32 | ▲ +26.46% | ▲ +28.96% | $1.12 (+37.60%) |
Jun 10, 2026 19w ago | 6-K | $1.75 $1.38 | ▲ +21.14% | ▲ +27.72% | $1.12 (+36.00%) |
Jun 9, 2026 19w ago | 6-K | $1.75 $1.38 | ▼ −21.14% | ▼ −27.72% | $1.12 (−36.00%) |
Jun 9, 2026 19w ago | Press Release | $1.80 $1.39 | ▲ +22.78% | ▲ +26.59% | $1.12 (+37.78%) |
Jun 1, 2026 21w ago | Press Release | $2.01 $1.25 | ▼ −38.06% | ▼ −39.29% | $1.12 (−44.28%) |
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