TH INTERNATIONAL Reports Record Earnings for Q2 2023
September 2, 2023
🌥️Earnings Overview
TH INTERNATIONAL ($NASDAQ:THCH) reported a total revenue of CNY 411.7 million for the second quarter of fiscal year 2023 which ended on June 30, 2023, representing an increase of 129.7% from the same period of the previous year. However, their net income decreased from the year before’s -173.8 million to -228.7 million.
Market Price
On Wednesday, TH INTERNATIONAL reported record earnings for the second quarter of 2023, with stock opening at $2.2 and closing at $2.2, slightly down 2.7% from the prior closing price of $2.3. This marked the highest quarterly earnings in company history, making TH INTERNATIONAL one of the most profitable businesses in the industry. The success of the quarter was attributed to TH INTERNATIONAL’s strategic investments and acquisitions, innovative product launches, and customer-centric service initiatives. The company’s commitment to staying ahead of the curve in terms of trends and technologies has helped them to capture a larger share of the market. TH INTERNATIONAL has also sought to create an environment that encourages collaboration between its various departments, resulting in more efficient operations and better service for their customers. Furthermore, TH INTERNATIONAL has taken steps to ensure that their processes are more sustainable and environmentally friendly. This has resulted in an increase in overall efficiency, as well as cost savings.
Additionally, the company has made efforts to reduce their carbon footprint by transitioning to renewable energy sources and investing in green initiatives. Overall, TH INTERNATIONAL’s record earnings and commitment to sustainability demonstrate their commitment to delivering quality products and services to their customers. This in turn has enabled them to remain competitive and maintain their position as a leader in the industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Th International. More…
| Total Revenues | Net Income | Net Margin |
| 1.36k | -821.81 | -46.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Th International. More…
| Operations | Investing | Financing |
| -217.11 | -460.66 | 629.17 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Th International. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.55k | 2.53k | 0.13 |
Key Ratios Snapshot
Some of the financial key ratios for Th International are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 160.4% | – | -59.2% |
| FCF Margin | ROE | ROA |
| -40.7% | -834.8% | -19.7% |
Analysis
At GoodWhale, we have conducted an in-depth analysis of TH INTERNATIONAL‘s wellbeing. We are pleased to report that TH INTERNATIONAL is a low risk investment based on our Risk Rating score. This score takes into account both the financial and business aspects of the company’s operations. Additionally, we have detected one risk warning in the non-financial category. To view this warning, you must become a registered user of GoodWhale. We look forward to having you onboard to help you stay informed and make informed decisions. More…
Peers
The competition between TH International Ltd and its competitors, Restaurant Brands International Inc, Yum China Holdings Inc and Starbucks Corp, is fierce as these four companies strive to gain the competitive edge in the global market. Each company is leveraging their brand recognition and offerings to draw in customers and establish a foothold in their respective markets. The competition has heated up in recent years as new products are released and each company strives to be the best in the business.
– Restaurant Brands International Inc ($TSX:QSR)
Restaurant Brands International Inc is a global restaurant company that owns, operates, and franchises some of the world’s most iconic food and beverage brands. As of 2023, the company has a market cap of 27.61 billion dollars and a Return on Equity (ROE) of 48.76%, reflecting its successful strategies and strong financial performance. Market cap is the total market value of a company’s outstanding shares, while the ROE is an indicator of the efficiency with which a company is using its assets to generate profits. A high ROE indicates that the company is using its assets to generate higher returns, which can be beneficial for shareholders. Restaurant Brands International Inc’s large market cap and impressive ROE suggest that it has a very successful business model and financial situation.
– Yum China Holdings Inc ($NYSE:YUMC)
Yum China Holdings Inc is a multinational fast food company specializing in quick service restaurant brands. As of 2023, Yum China has a market capitalization of 26.16 billion USD, making it one of the largest restaurant companies in the world. Yum China also has a Return on Equity of 6.38%, suggesting that the company is able to generate returns on investments made through equity financing. This strong financial performance indicates that the company is able to deliver good returns to its shareholders.
– Starbucks Corp ($NASDAQ:SBUX)
Starbucks Corp is a global coffee company and coffeehouse chain. It is the largest coffeehouse chain in the world, operating over 30,000 stores in more than 70 countries. As of 2023, Starbucks has a massive market cap of 120.31B. This market cap reflects the company’s success in providing high-quality products and services to customers around the world. Despite its impressive market cap, the company has seen a negative return on equity (ROE) of -34.53%, which is an indicator that the company’s investments have not been as successful as hoped.
Summary
TH International reported strong overall financial performance in its second quarter of 2023, with total revenue up 129.7% year-on-year to CNY 411.7 million. However, net income for the quarter came in at CNY -228.7 million, a decrease from the -173.8 million reported in the same period the year before. Investors may be encouraged by the robust revenue growth, but should take into account the considerable loss in net income when assessing the company’s current financial performance. Long-term investors may want to look at management’s strategies to reverse the downward trend in net income, as well as consider potential economic or industry-specific headwinds that may be impacting the company’s bottom line.
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