TH International Limited, the operator of Tim Hortons coffee shops in China, reported second-quarter 2026 revenue of RMB273.4 million, down 21.7% from a year earlier, while system sales fell 15.1% to RMB347.8 million. Net loss widened to RMB97.4 million from RMB75.9 million. Revenue nevertheless increased 6.5% from the first quarter and system sales rose 7.7% sequentially, with company-operated store contribution margin improving to 5.7%. CEO Zhang Guohua, who took the role on June 15, said the company was at a critical juncture and set out a transformation agenda covering product innovation, marketing, operations, store-network optimization and AI. The company closed underperforming locations while shifting toward made-to-order stores, which accounted for 780 of its 1,028 locations at June 30. Loyalty members rose 41.7% year over year to 37.1 million, although average monthly transacting customers fell 20.6% and same-store sales declined 17.8%. Tim Hortons Restaurant International GmbH provided an initial $15.8 million tranche under a $55 million senior secured convertible-note financing in July, with proceeds earmarked for innovation, marketing and expansion.