- Tims China (THCH, Financial) reported a 12.0% decline in revenue for Q4 2024, totaling RMB332.6 million.
- The company saw a significant increase in its franchised stores, with 76 new openings, reaching 1,022 stores by the end of 2024.
- Loyalty program membership experienced a 29.7% growth, reaching 24 million members.
In its latest financial results, Tims China (THCH) announced a mixed performance for Q4 2024. The company reported a 12.0% year-over-year decrease in total revenues, amounting to RMB332.6 million (USD45.6 million). This decline is partly attributed to a 12.3% drop in same-store sales and a 13.8% reduction in order volumes at company-owned locations.
Despite the revenue decline, Tims China made considerable strides in improving its operational efficiency. The company-owned store contribution margin improved by 3.9 percentage points to 4.8%, driven by significant reductions in key cost areas: food and packaging costs decreased by 3.7 percentage points, labor costs by 2.5 percentage points, and marketing expenses by 1.5 percentage points.
The expansion of their franchise business was a notable highlight, with the number of franchised stores rising from 283 to 446 over the year. The company achieved 76 net new store openings in Q4 alone, bringing the total number of system-wide stores to 1,022 by the end of 2024.
Additionally, Tims China reported growth in its loyalty program, with registered members reaching 24.0 million, a 29.7% increase from the previous year. This expansion of customer engagement is viewed as a positive trend, although the company still faces challenges in reversing the declines in traffic and same-store sales.
Overall, while Tims China (THCH, Financial) faces ongoing market challenges, the company's operational enhancements and strategic pivot towards franchising indicate potential for future stabilization and growth.
