BRIEF: TH International revenue falls as same-store sales plunge

TH International Ltd. (THCH.US), operator of the Tim Hortons restaurant chain in China, said on Tuesday its revenue fell 17.1% year-on-year to 360 million yuan ($50 million) in the third quarter, as its same-store sales tumbled 21.7%. Revenue from the company’s self-operated stores fell 22.9% to 300 million yuan, as it blamed the big same-store sales decline and its closure of underperforming stores.

The company reported a net loss of 87.4 million during the third quarter, narrowing sharply from its 160 million yuan loss in the year-ago period.

TH International has suffered as a result of China’s coffee price wars, which have seen some chains sell premium coffee for as little as 9.9 yuan per cup. The company had 946 stores in its network at the end of September, up from 759 a year earlier. Its number of franchised stores more than doubled to 382 over that period from 174 as it ramped up that part of the business. But its self-operated store count fell to 564 from 585, as it closed underperforming outlets.

TH International’s shares fell 3.7% in Tuesday trading in New York after the results were published. They now trade near their 52-week low.

By Doug Young

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