Chagee Holdings Limited, listed on NASDAQ under the symbol CHA, is a prominent player in the premium tea drinks market. The company has expanded its teahouse network to 7,338 locations across Greater China and overseas, marking a 25.9% increase from the previous year. Despite its growth, Chagee faces challenges in meeting revenue expectations, as seen in its recent earnings report.
On November 28, 2025, CHA reported earnings per share of $0.36, aligning with estimates. However, its revenue of approximately $3.21 billion fell short of the expected $3.74 billion. This shortfall reflects the company's struggle to meet market expectations, despite its efforts to diversify its product mix beyond tea lattes, which may impact profit margins.
Chagee's third-quarter performance was disappointing, with both revenue and profit below expectations. The total Gross Merchandise Value (GMV) for the quarter was RMB7.93 billion, a decrease from RMB8.3 billion in the same period of 2024. The Greater China market saw a decline in GMV to RMB7.63 billion, down from RMB8.13 billion the previous year, highlighting domestic challenges.
Despite these setbacks, Chagee's overseas market showed promise, with GMV reaching RMB300.3 million, a 75.3% increase year-over-year. This growth underscores the company's potential in international markets, even as it navigates domestic hurdles. The company's strategic shift and expansion efforts are crucial as it seeks to enhance its top-line performance.
Financially, Chagee maintains a price-to-earnings (P/E) ratio of 12.29, reflecting market valuation of its earnings. Its price-to-sales ratio is 1.45, indicating investor willingness to pay per dollar of sales. With a low debt-to-equity ratio of 0.12 and a current ratio of 4.22, Chagee demonstrates strong liquidity and conservative debt use, positioning it well for future growth.
