| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 87 | 12.0x | 17.8x | Top tier | |
Growth | 31 | -3.4% | 7.1% | Bottom tier | |
Quality | 78 | 11.1% | 4.5% | Top tier | |
Safety | 91 | — | 2.6x | Top tier | |
Capital Return | 91 | 7.77% | 2.12% | Top tier | |
Momentum | 40 | -54.0% | 2.9% | Around median | |
Sentiment | 72 | 4 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Chagee operates a global network of tea cafés focused on fresh milk tea beverages made from tea leaves, with expansion into categories such as lemon milk tea, matcha milk tea, specialty beverages, and gelato. In Q2 fiscal 2026, the café count reached 7,639, including 7,240 in Greater China and 399 in overseas markets, split between 6,756 franchised cafés and 883 company-owned cafés. The revenue model relies primarily on franchised cafés, which generated 2.474 billion yuan, equivalent to 72.5% of quarterly net revenue, while company-owned cafés generated 940.6 million yuan.
In Q2 fiscal 2026, net revenue increased 2.5% year over year to 3.415 billion yuan but declined 3.7% from the previous quarter, while gross merchandise value reached 7.663 billion yuan, down 3.3% sequentially. Gross profit was 1.843 billion yuan, with a gross margin of 54%, unchanged year over year, while GAAP net income increased to 464.8 million yuan, with a margin of 13.6%, compared with 2.3% in the corresponding period. Adjusted net income was 488.7 million yuan, with a margin of 14.3%, while the company reported basic and diluted earnings per ordinary share of 2.44 and 2.42 yuan, respectively.
The business mix showed a clear divergence between Greater China and overseas markets in Q2 fiscal 2026. Gross merchandise value in Greater China reached 7.156 billion yuan and declined 4.5% sequentially, while overseas gross merchandise value increased 114.3% year over year and 18.2% sequentially to 504 million yuan. On an annual basis, EDGAR data for fiscal 2025 showed revenue of 12.9 billion dollars, net income of 1.2 billion dollars, and earnings per share of 6.18, according to the units provided in the data.
Automated analysis for informational purposes only — not investment advice.
The analyst consensus is “Buy,” with an average price target of 13.7 dollars and a wide range between 10 dollars and 15.7 dollars; both the average and highest targets remain below the 52-week high of 19 dollars. No price-to-earnings ratio is available in the data, so the valuation assessment is based on the target range and the 52-week range of 8.98–19 dollars, balancing overseas market growth and margin improvement against weakness in Greater China and slowing revenue.
Figures in the text are as of 2026-09-01; the live price is shown at the top of the page.
GAAP net income increased to 464.8 million yuan, with a margin of 13.6% compared with 2.3% a year earlier. The gross margin remained at 54%, while the operating income margin increased to 15.4% from 3.2%. The decline in the adjusted general and administrative expense ratio to 9.1% and the adjusted selling and marketing expense ratio to 8.8% helped offset limited revenue growth of 2.5%.
Overseas gross merchandise value reached 504 million yuan in Q2 fiscal 2026, an increase of 114.3% year over year and 18.2% sequentially. By comparison, gross merchandise value in Greater China reached 7.156 billion yuan and declined 4.5% from the previous quarter. Overseas markets therefore represent the fastest growth driver, but they remained a much smaller portion of total gross merchandise value of 7.663 billion yuan.
The company launched 17 products in Q2 fiscal 2026, the highest quarterly number in its history. Melon Oolong Tea averaged 110 cups per café per day in its first week, and Longjing Tea Latte increased gross merchandise value by about 25% over 14 days. Lemon Tea Latte also increased first-time new member acquisition by 45%, and gelato reached more than 190 cafés by August 2026.
Management said same-store sales recorded a low-single-digit decline in July 2026, an improvement from the first half of fiscal 2026. Management expected them to turn to positive year-over-year growth in August 2026 but acknowledged continued uncertainty in the external environment. It attributed the improvement to products such as Guava Peach Iced Tea and Lemon Tea Latte, the return of Lychee Black Milk Tea and Tieguanyin Milk Tea, and improved in-café service.
The company ended Q2 fiscal 2026 with cash, restricted cash, and time deposits of 6.796 billion yuan. As of August 24, 2026, it had executed approximately 30 million dollars under a repurchase program of up to 150 million dollars. Management also noted a special dividend of 177 million dollars in Q4 fiscal 2025, while any additional recurring dividends remained under evaluation and subject to board review and approval.
The majority of gross merchandise value is concentrated in Greater China, where it reached 7.156 billion yuan out of 7.663 billion yuan in Q2 fiscal 2026. During the same period, net revenue grew only 2.5% year over year and declined 3.7% sequentially amid intensifying competition in the fresh milk tea category. The adjusted operating income margin also declined to 16.1% from 17.1% sequentially, making continued cost control and a recovery in same-store sales critical factors.
