The operator of Tim Hortons and Popeyes in China, TH International (Tims China), has reported a revenue of US$56.8 million for the quarter ended June 30, a 129.7 per cent jump year on year. 

Adjusted store EBITDA was $2.5 million, compared to a loss of $6 million last year. 

CEO and director of Tims China, Yongchen Lu, said the growth was driven by new store openings and continued strong same-store traffic and sales growth. As of the end of the quarter, the company has 700 stores in the country, including self-operated and franchised stores. 

“We continued to build density in our existing cities and penetrate new cities such as Yantai, Taizhou, and Changzhou,” said Lu. “At the same time, we achieved greater capital efficiency via increasing franchise development, notably through the rapid expansion of Tims Express, our most compact store format.”

Meanwhile, the company narrowed its adjusted net loss to $12.6 million from $21.1 million last year. 

The company opened its first Popeyes flagship restaurant in the heart of Shanghai’s Huaihai commercial district earlier this month. The company aims to open at least 10 Popeyes restaurants in Shanghai this year and 1700 across the country over the next 10 years.

“We remain committed and confident in our long-term new store development plan,” said Dong (Albert) Li, CFO of Tims China. “Looking ahead, our top near-term financial priorities are to deliver robust revenue growth, improve profitability at the store and corporate level, and achieve operating cash flow breakeven.”