TH International Limited (THCH) AI Stock Analysis
THCH AI stock analysis summary
AI ResearchTH International Limited manages and operates Tim Hortons coffee shops across mainland China, Hong Kong, and Macau. The company generated $1.20B in trailing twelve-month revenue, but recorded a profit margin of -42.5% and total debt of $1.98B as of June 30, 2026. Its stock closed at $1.00 on October 16, 2026, reflecting a 1-year return of -60.0%.
- Market cap
- $32.0M
- Revenue (TTM)
- $1.20B
- P/E
- —
- 1Y return
- -60.0% S&P 500 16.8%
- Avg. target
- —
Bull case
- Revenue expanded at a 5-year CAGR of 43.3% between FY2020 and FY2025.
- Free cash flow deficits narrowed from -$621.9M in FY2022 to -$78.3M in FY2025.
- Operating cash flow improved from -$286.9M in FY2022 to -$12.7M in FY2025.
Bear case
- Net debt totaled $1.86B as of June 30, 2026, accompanied by negative shareholders' equity of -$1.41B.
- Quarterly revenue fell 21.7% year-over-year for the quarter ended June 30, 2026.
- The stock declined 60.0% over the past year to close at its 52-week low of $1.00 on October 16, 2026.
What TH International does
TH International Limited manages and oversees the operation of Tim Hortons coffee shops across mainland China, Hong Kong, and Macau. Headquartered in Shanghai, China, and founded in 2018, the company operates as a subsidiary of Tim Hortons Inc. It expanded its footprint to approximately 460 coffee shops as of September 28, 2022. The business serves signature Tim Hortons coffee blends, freshly baked goods, donuts, sandwiches, and breakfast and lunch options, focusing on delivering quick-service food and beverage dining experiences across its target markets.
Growth and profitability
Annual revenue rose from $643.4M in FY2021 to $1.01B in FY2022 and $1.56B in FY2023, before declining 10.8% to $1.39B in FY2024 and falling 8.0% to $1.28B in FY2025. Between FY2020 and FY2025, revenue recorded a 5-year CAGR of 43.3%. Net income remained negative across the period, reporting -$381.7M in FY2021, -$742.6M in FY2022, -$876.3M in FY2023, -$412.1M in FY2024, and -$422.7M in FY2025. For the latest quarter ended June 30, 2026, quarterly revenue fell 21.7% year-over-year, while trailing twelve-month revenue stood at $1.20B with an operating margin of -19.4%.
Balance sheet and cash flow
As of June 30, 2026, TH International held $121.1M in cash and short-term investments alongside total debt of $1.98B, resulting in net debt of $1.86B. Total assets stood at $1.03B, while shareholders' equity was -$1.41B and the current ratio was 0.28. In FY2025, the company recorded operating cash flow of -$12.7M, free cash flow of -$78.3M, and capital expenditures of $65.6M. Over five years, the company's share count expanded by 20.8%.
Valuation and performance
TH International trades at an enterprise value of $320.3M and a market capitalization of $32.0M. Its price-to-sales ratio is 0.0x, which sits below the 0.7x median for its US-listed Consumer Cyclical peers. The stock has an EV-to-revenue multiple of 1.8x and a price-to-book ratio of 16.8x. Over the 1-year period ending October 16, 2026, the stock returned -60.0%, trailing the S&P 500 return of 16.8%. Over five years, the stock returned -98.0% compared to 83.0% for the S&P 500.
What analysts expect
For the fiscal year ending December 31, 2026, analyst consensus estimates project an EPS of -$8.16, representing an estimated EPS decline of 684.6%, with revenue estimated at $0. For the following fiscal year, 1 analyst models an EPS of -$6.26, indicating an estimated EPS growth of 23.3%, alongside a revenue estimate of $0. The company's next earnings date is scheduled for December 8, 2026.
Key risks and what to watch
- A current ratio of 0.28 as of June 30, 2026, signals potential short-term liquidity pressure.
- Ongoing annual losses, including net income of -$422.7M in FY2025, continue to weigh on the balance sheet.
- The trailing twelve-month operating margin of -19.4% compares to a peer median of 8.8% for US-listed Consumer Cyclical companies.
- Total debt of $1.98B substantially exceeds cash and short-term investments of $121.1M.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this THCH AI stock analysis
This page is an AI-written research summary of TH International Limited (THCH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: THCH income statement, THCH balance sheet, THCH key metrics, THCH analyst forecast, THCH chart. See the THCH stock overview for the latest quote and news.
THCH AI stock analysis FAQ
What does TH International Limited do?
TH International Limited manages and operates Tim Hortons coffee shops across mainland China, Hong Kong, and Macau. It offers coffee, donuts, sandwiches, and other quick-service food and beverage items.
Does THCH pay a dividend?
No, THCH does not pay a dividend. The company reported capital expenditures of $65.6M in FY2025 as it funded its business operations.
What is THCH's debt position?
As of June 30, 2026, TH International had total debt of $1.98B and cash and short-term investments of $121.1M, resulting in net debt of $1.86B. Shareholders' equity was -$1.41B.
When is TH International's next earnings date?
The company's next earnings date is scheduled for December 8, 2026. Consensus estimates project an EPS of -$8.16 for the fiscal year ending December 31, 2026.