TH International Limited Reports Q2 2026 Earnings Call Details
TH International Limited reported mixed performance in its second-quarter earnings call for fiscal year 2026, with same-store sales declining by 17.8% due to increased competition and reduced delivery subsidies. Management attributed the loss of market share partly to a historical underspend on marketing and advertising. The company is implementing strategic changes such as closing underperforming stores and focusing on product innovation in breakfast and lunch offerings. Operational efficiencies were achieved, with food and packaging costs decreasing by 1.8 percentage points due to supply chain improvements. Digital orders now account for 91.8% of total orders, supported by a loyalty program that grew by 41.7%. The company secured $55 million in financing from RBI, which will be used for product innovation and increased marketing spend starting September 2026. TH International is shifting its store development strategy to balance between owned and franchised locations while integrating AI technology into inventory management and labor scheduling. Management aims to achieve EBITDA breakeven through cost optimization and improved profitability, with a focus on recovering customer traffic via new product launches.
Tickers: $NVDA
Topics: capital-allocation digital-orders marketing-strategy retail same-store-sales-decline