Chagee Holdings Past Earnings Performance
Past criteria checks 1/6
Chagee Holdings has been growing earnings at an average annual rate of 35.5%, while the Hospitality industry saw earnings growing at 37.5% annually. Revenues have been growing at an average rate of 54% per year. Chagee Holdings's return on equity is 15.7%, and it has net margins of 7.9%.
Key information
35.49%
Earnings growth rate
28.53%
EPS growth rate
| Hospitality Industry Growth | 19.52% |
| Revenue growth rate | 54.02% |
| Return on equity | 15.66% |
| Net Margin | 7.89% |
| Last Earnings Update | 31 Dec 2025 |
Recent past performance updates
Recent updates
Chagee: Burden Of Proof Is High
Summary Chagee remains a hold as management shifts focus to same-store recovery over unit growth, signaling a strategic pivot. 2026 guidance suggests stabilization, not recovery, with revenue and profit expected to be broadly flat year-over-year. Recent product innovation and franchise model changes show early promise, but store-level metrics and same-store sales remain weak. Valuation multiples have likely troughed at 6x NTM PE, but upside depends on tangible evidence of demand recovery, likely not before H2 2026. Read the full article on Seeking Alpha
Q4 Update - More teahouses, less revenue, more costs
Compared with Q4 2024, Chagee has ~15% more teahouses (7453 to 6440), and yet has 10.8% lower revenues. This is represented by average monthly GMV per teahouse dropping from 456k to 337k RMB (down 26%).Q3 Update - Revenue sustained only by growth
Revenues did not grow in line with new teahouse openings, and average monthly GMV is down 30% from the previous year. Rate of teahouse growth per quarter is ~5%.Why We're Not Concerned About Chagee Holdings Limited's (NASDAQ:CHA) Share Price
When close to half the companies in the United States have price-to-earnings ratios (or "P/E's") below 18x, you may...A Look At The Fair Value Of Chagee Holdings Limited (NASDAQ:CHA)
Key Insights The projected fair value for Chagee Holdings is US$14.53 based on 2 Stage Free Cash Flow to Equity With...Cheap if able to sustain revenue, and a potential bargain if able to turn store openings into revenue growth
Conservative valuation of $24.28 based on sustained revenues of ~RMB3bn/quarter. Potential upside if growth in store openings realises additional revenue.Chagee Holdings' IPO Offers A Compelling PEG Proposition
Summary Chagee Holdings' IPO surged over 15%, highlighting its rapid growth with 6,440 teahouses and strong sales, making it a compelling investment for China exposure. The company’s impressive growth includes a tenfold increase in teahouses and a significant rise in per-store sales, indicating a robust business model. Chagee's historical PEG ratio of 0.081 is exceptionally low, suggesting significant growth potential nearly unmatched in the consumer discretionary sector. Despite potential risks like market saturation and changing consumer tastes, Chagee's strong earnings and international expansion prospects make CHA stock a strong buy. Read the full article on Seeking AlphaRevenue & Expenses Breakdown
How Chagee Holdings makes and spends money. Based on latest reported earnings, on an LTM basis.
Earnings and Revenue History
| Date | Revenue | Earnings | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 31 Dec 25 | 12,907 | 1,019 | 3,842 | 0 |
| 30 Sep 25 | 13,267 | 769 | 3,802 | 0 |
| 30 Jun 25 | 13,600 | 989 | 3,633 | 0 |
| 31 Mar 25 | 13,292 | 1,517 | 2,788 | 0 |
| 31 Dec 24 | 12,406 | 1,435 | 2,222 | 0 |
| 30 Sep 24 | 11,118 | 1,959 | 1,840 | 0 |
| 30 Jun 24 | 9,021 | 1,521 | 1,427 | 0 |
| 31 Mar 24 | 6,730 | 1,044 | 993 | 0 |
| 31 Dec 23 | 4,640 | 527 | 625 | 0 |
| 30 Sep 23 | 2,809 | 324 | 430 | 0 |
| 31 Dec 22 | 492 | -145 | 186 | 0 |
Quality Earnings: CHA has high quality earnings.
Growing Profit Margin: CHA's current net profit margins (7.9%) are lower than last year (11.6%).
Free Cash Flow vs Earnings Analysis
Past Earnings Growth Analysis
Earnings Trend: Insufficient data to determine if CHA's year-on-year earnings growth rate was positive over the past 5 years.
Accelerating Growth: CHA's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: CHA had negative earnings growth (-29%) over the past year, making it difficult to compare to the Hospitality industry average (18.5%).
Return on Equity
High ROE: CHA's Return on Equity (15.7%) is considered low.
Return on Assets
Return on Capital Employed
Discover strong past performing companies
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2026/05/11 19:32 |
| End of Day Share Price | 2026/05/08 00:00 |
| Earnings | 2025/12/31 |
| Annual Earnings | 2025/12/31 |
Data Sources
The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.
| Package | Data | Timeframe | Example US Source * |
|---|---|---|---|
| Company Financials | 10 years |
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| Analyst Consensus Estimates | +3 years |
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| Market Prices | 30 years |
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| Ownership | 10 years |
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| Management | 10 years |
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| Key Developments | 10 years |
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* Example for US securities, for non-US equivalent regulatory forms and sources are used.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more.
Analysis Model and Snowflake
Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.
Learn about the world class team who designed and built the Simply Wall St analysis model.
Industry and Sector Metrics
Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.
Analyst Sources
Chagee Holdings Limited is covered by 11 analysts. 9 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.
| Analyst | Institution |
|---|---|
| Sijie Lin | China International Capital Corporation Limited |
| Jiwei Liu | Citic Securities Co., Ltd. |
| Ya Jiang | Citic Securities Co., Ltd. |