The following is a summary of the TH International Limited (THCH) Q1 2024 Earnings Call Transcript:

Financial Performance:

• First quarter 2024 reported system sales growth of 7.1% year-over-year, reaching RMB363.5 million.

• The growth was driven by system-wide store increase from 648 to 917. Monthly average transacting customers grew by 22.8% to 2.8 million.

• Digital orders account for 85.4% of total orders, up from 79.1% in Q1 2023.

• Food and packaging costs as a percentage of revenues from company-operated stores decreased by 1.0 percentage point year-over-year.

• Rental and labor costs as a percentage of revenues from company-operated stores decreased by 0.9 percentage point and 1.3 percentage points, respectively.

Business Progress:

• Introduced a new product line, Tims China Double Double and 14 new beverages along with 18 new food products during Q1 2024.

• Pruned unperforming stores and surpassed 20 million registered loyalty club members.

• Launched 14 Popeyes restaurants in Shanghai to diversify product offerings.

• Progressed in strategic partnerships and expanded into new cities like Huizhou and Huzhou.

Opportunities:

• Expansion of digital and delivery services bolstered by an increase in digital order percentage.

• Leveraging robust loyalty club growth and media exposure to enhance brand recognition and customer engagement.

Risks:

• Acknowledged intense price competition and significant macroeconomic headwinds as potential risks affecting profitability and market position.

Tips: For more comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.