China Food

Tims China’s latest performance disclosure also disclosed the “old faces” of these former Yum and McDonald’s executives

Although the listing time was slightly delayed, TIMS China, a coffee chain backed by Tencent and Sequoia Capital, did not slow down its expansion.

 

Xiaoshidai noted that recently, TIMS China updated its listing documents and disclosed the latest information such as the performance data of the first half of the year and the list of executives after capacity expansion for the first time. Next, let’s have a look.

 

Store level profitability

 

Although the latest document does not disclose the revenue profit, TIMS China said that it will achieve store level profit in 2020 and the first half of 2021 (Note: excluding pre store costs and expenses, etc.). In this document, the company also disclosed a net loss of 143 million yuan in 2020.

 

Let’s look at the key indicator of same store sales. According to the document, in the first half of 2021, TIMS China’s same store sales increased by 34.8%, lower than the 42.5% growth in the first quarter of 2021.

To some extent, this shows the impact of the rebound of the epidemic on the catering industry, and may have a greater impact in the third quarter. According to Bloomberg at the end of October, TIMS China Chairman Peter Yu said that the company’s same store sales increased by more than 20% in the first nine months of this year.

 

In the post epidemic era, the importance of digital capability for catering recovery is more prominent, and tims China, supported by Tencent, is also increasing.

 

Comparing the old and new documents, the snack generation found that as of June this year, the number of members of tims China had reached 3.9 million, a significant increase from 3.2 million in April this year. At the same time, the proportion of the company’s digital orders rose to more than 70%.

From the perspective of structural changes in channel sales, the off store drinking scene is still accelerating its rise. As of June this year, the sales of meituan and other takeout platforms in tims China accounted for 38%, an increase of 3 percentage points over April this year.

 

At the same time, the proportion of orders placed in the store decreased from 31% to 28%. Tims China’s own wechat applet and other mobile terminals accounted for 34%. In the second quarter of 2021, the number of mobile terminals of the company was about 3 million, and the compound annual growth rate from the first quarter of 2020 to the second quarter of 2021 was 368%.

Store and executive expansion

 

Tims China, which wants to accelerate the opening of stores in the next five years, is making steady progress.

 

According to the latest documents reviewed by the snack generation, in the first half of 2021, the number of stores in tims China reached 219, with a net increase of 82 stores during the period, close to the number of 103 stores in 2020. By the end of October this year, TIMS China announced that it had opened its 300th store in Tianjin.

 

According to the above documents, as of June this year, the company has signed and is building 71 stores, and 199 stores have been negotiated and determined. Tims China CEO Lu Yongchen once revealed that it is expected that there will be 400 stores in Huamen by the end of this year, or one every 36 hours.

 

Busy expanding stores and listing, TIMS China has invited more executives, including “old faces” from former Yum! Brands and McDonald’s.

 

Xiaoshidai noted that tims China disclosed the following three management for the first time in the latest document: Chief Financial Officer Dong (Albert) Li, general manager of South District Anny Li and general manager of West District Cory Yu.

其中,Dong(Albert) Li据称是Tims进入中国以来的第一位首席财务官,主导过多家公司的上市工作。

 

According to latepost in September this year, Dong (Albert) Li (Li Dong) once worked in KPMG and BofA Merrill Lynch Investment Banking Department, and successively served as chief financial officer in kovos, Paige media, elite education and Himalaya. During his tenure, kovos landed in a shares, elite education landed in US shares, and Himalaya also submitted a prospectus to the Hong Kong stock exchange.

 

The above News quoted a person close to tims China as saying that the reason why Li Dong joined is that under the current turbulent capital market environment, TIMS China needs a more experienced person to balance investor relations and strengthen capital operation, financial management, investment and financing and market value management after listing.

 

The two regional general managers, Anny Li and Cory Yu, are from Yum and McDonald’s respectively.

 

According to the LinkedIn data found by snack generation, Anne Li joined tims China in April this year. Previously, she worked at Yum for more than 20 years, and her last position was deputy general manager of operations. Another Cory Yu is very low-key and rarely has relevant experience in open channels.

 

Lower revenue expectations for this year

 

Finally, let’s take a look at the performance outlook of tims China.

 

According to the latest documents, TIMS China expects its revenue to be US $103.9 million (about RMB 665 million) in 2021; After adjustment, the EBITDA (profit before tax, interest, depreciation and amortization) of the store is USD 5.7 million; After adjustment, the enterprise’s EBITDA loss is USD 14.7 million, and it is expected to turn loss into profit in 2023.

 

The comparison of snack generations found that the above annual income is expected to be slightly lower than the previous guidance of US $105 million, which does not rule out the possibility of taking the epidemic situation into account repeatedly. Despite short-term changes, TIMS China’s expected revenue growth in the next five years remains unchanged.

It is also worth noting that the new document also adds a page to the “same frame” of tims China and American coffee chain Dutch Bros.

 

Compared with the data as of June this year, the number of Dutch Bros stores is more than twice that of tims China, but the store structure of the two sides is quite different. Dutch Bros has more franchised stores, accounting for more than half of the stores. Tims China is currently dominated by direct sales.

 

The above documents describe Dutch Bros as a cutting-edge coffee chain with 471 stores in the United States. Since its listing in September this year, the “stock price trend is very strong”. “By October 4, its share price had risen from $23 per share of the IPO price to $44.97 per share, an increase of 96%, and the current valuation reached $7.2 billion.”.

 

Although the coffee market penetration and business scale of the two enterprises are different, this “benchmarking” still seems to describe a broad valuation and growth space to the outside world. Previously, when it was rumored that tims China would merge with blank check company for listing, Bloomberg quoted people familiar with the situation as saying that the valuation of the merged entity was about US $1.8 billion (about RMB 11.663 billion).

Pay attention to “snack generation (wechat: foodinc)”, reply to “tims coffee” and watch the wonderful news.

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