TH International Grows Franchise Stores
TH International(NASDAQ:THCH) released results for the second quarter ended June 30, 2024, on August 29, 2024, highlighting system sales growth of 1.4% year over year, profits from other revenues up 110.3% year over year, and a return to positive adjusted corporate EBITDA. The call discusses a significant strategic pivot toward subfranchising, robust growth in loyalty club membership, and improved operational efficiencies amid continued competitive pressures in China's beverage market.
Since launching its targeted franchisee program in December 2023, TH International received more than 8,100 franchise applications and successfully transitioned over 400 stores to subfranchisee status by the end of the second quarter. The number of franchised stores increased from 333 as of June 30, 2023, to 449 as of June 30, 2024, and management is targeting approximately 200 new franchise stores on a gross basis in 2025.
This rapid franchise expansion signals broad acceptance of TH International's model while supporting management’s focus on capital efficiency and profitability.
Source Fool.com
