TH International (NASDAQ:THCH), the operator of Tims China, reported weaker first-quarter 2026 sales as management continued to close underperforming stores, reduce discount-driven promotions and shift resources toward franchising and profitability.
On the company’s earnings call, CEO Director Yongchen Lu said the coffee industry entered a seasonal slowdown in the quarter and that Tims China “proactively optimized its operating rhythm” by moderating promotions and reallocating resources toward franchise development and long-term profitability. Lu said the strategy put pressure on short-term revenue indicators but aligned with the company’s transition “from prioritizing scale growth to prioritizing quality growth.”
