Chagee Holdings Limited American Depositary Shares
- Open
- 11.60
- Day high
- 11.74
- Day low
- 11.47
- Prev close
- 11.58
- Volume
- 90K
- Mkt cap
- $2.2B
- P/E (TTM)
- 15.9
- EPS (TTM)
- $0.73
- P/B
- 1.9
- P/S
- 1.1
- Yield
- 7.54%
- Per share
- $0.87
Chagee Holdings Limited American Depositary Shares (CHA) is a Consumer Defensive company listed on NASDAQ. The stock is down 53% over the past year.
Chagee Holdings Limited American Depositary Shares (CHA) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 2 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
CHA earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 29, 2026 | $0.27 | $0.38 | +39.4% | $514M | +9.8% |
| Mar 31, 2026 | $0.19 | $0.07 | -63.2% | — | — |
| Nov 28, 2025 | $0.36 | $0.36 | +0.0% | $451M | -87.9% |
| Aug 29, 2025 | $0.09 | $0.46 | +411.1% | $465M | -88.7% |
| May 30, 2025 | — | $0.54 | — | $3.4B | — |
CHA insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 25, 2026 | Yin Dengfengdirector, officer: Chief Operating Officer | Option | 80,427 | $3.76 |
Source: CHA SEC Form 4 filings, latest Jun 25, 2026. For informational purposes only — not investment advice.
See the full CHA insider & 13F page →Chagee Holdings Limited American Depositary Shares company profile
Overview
Chagee Holdings Limited (NYSE:CHA) is a Chinese tea beverage company founded in 2017 and based in Shanghai. The company went public on the New York Stock Exchange in May 2020 through American Depositary Shares. Chagee operates and franchises a chain of teahouses under the CHAGEE brand across China and internationally, positioning itself in the rapidly growing new-style tea drink market that has become increasingly popular among younger consumers in Asia.
Business
Chagee operates in the new-style tea beverage industry, a rapidly growing segment within the broader non-alcoholic beverage market that combines traditional tea with modern flavors, toppings, and preparation methods. This industry emerged from Taiwan's bubble tea culture and has expanded across Asia, particularly in China where it has become a significant lifestyle trend among millennials and Gen Z consumers. The company's core business revolves around CHAGEE-branded teahouses that serve freshly prepared tea beverages with various customization options including different tea bases, sweetness levels, ice levels, and add-ons like fruit jellies, pearls, and milk foam. These beverages are typically priced between $3-8 per cup, positioning them as affordable premium drinks that customers can enjoy daily. Chagee operates through two primary business models. The company runs company-owned stores which provide direct control over operations and customer experience, while also operating a franchise model that enables rapid expansion with lower capital requirements. Additionally, the company generates revenue through the sale of raw materials, packaging, equipment, and other supplies to its franchise partners, creating a comprehensive ecosystem around the CHAGEE brand. The company also leverages online platforms for order placement and delivery, integrating with popular Chinese food delivery services to reach customers who prefer convenience over in-store experiences. This omnichannel approach has become essential in the Chinese market where digital integration is expected by consumers.
Revenue model
Chagee generates revenue through multiple streams within its tea beverage ecosystem. The primary revenue source comes from direct product sales at company-owned stores, where customers pay per beverage ranging from approximately $3-8. The company also earns franchise fees and ongoing royalty payments from franchisees who operate CHAGEE-branded locations. A significant portion of revenue derives from supply chain sales to franchise partners, including tea leaves, syrups, packaging materials, specialized equipment, and other operational supplies. This creates a recurring revenue stream as franchisees must purchase these materials regularly to maintain brand standards and consistency. The company's profitability is influenced by several key factors. Raw material costs, particularly tea leaves and dairy products, directly impact margins and can fluctuate based on agricultural conditions and commodity prices. Labor costs in tier-one Chinese cities where many stores operate continue to rise, pressuring operational margins. Real estate costs for prime retail locations in shopping malls and commercial districts represent a significant fixed expense that affects store-level profitability. Competition intensity significantly impacts pricing power and market share. The new-style tea market includes numerous local and regional competitors, as well as established players like Heytea and Nayuki, creating pressure on both pricing and premium location availability. Consumer preferences toward health-conscious options and seasonal flavor trends require continuous product innovation and marketing investment. Economies of scale in procurement and supply chain management provide competitive advantages as the company grows, while digital integration capabilities and delivery partnerships can enhance customer convenience and expand addressable market reach.
Competitive moat
Chagee's competitive moat appears relatively narrow in the highly competitive Chinese new-style tea market. The company's primary defensive characteristics include brand recognition within its operating markets and an established supply chain infrastructure that serves both company-owned and franchise locations. The company benefits from operational expertise in store management, product development, and franchise system management that has been refined since 2017. Its integrated supply chain model creates some switching costs for franchisees who rely on Chagee for materials and equipment, providing recurring revenue stability. However, the moat faces significant challenges. The tea beverage industry has low barriers to entry, with new competitors regularly entering the market. Product differentiation is limited as beverage recipes can be relatively easily replicated, and customer loyalty in this segment tends to be driven more by convenience, price, and novelty than by strong brand attachment. Intense competition from well-funded rivals like Heytea, Nayuki, and numerous regional players creates ongoing pressure on market share and pricing power. The industry's rapid growth has attracted significant investment, leading to market saturation in many tier-one cities. The company's expansion into international markets may provide some geographic diversification, but faces the challenge of adapting to local tastes and competing with established local beverage brands. Overall, while Chagee has built a respectable business, its competitive position relies more on execution excellence than on structural advantages, making it vulnerable to well-funded competitors and changing consumer preferences.
Risks & safety
Chagee demonstrates a strong financial position with substantial margin of safety indicators. • Cash position: $651 million in cash and short-term investments as of Q4 2024, representing over 70% of current assets • Debt levels: Relatively low debt-to-equity ratio of 0.21, indicating conservative capital structure • Liquidity: Current ratio of 2.37 and quick ratio of 2.31, showing strong ability to meet short-term obligations • Cash generation: Positive free cash flow of $356 million for FY 2024, demonstrating strong cash conversion • Profitability: Net income of $345 million on revenue of $1.7 billion, showing healthy 20% net margin • Valuation metrics: P/E ratio of 17.3x and EV/EBITDA of 13.3x appear reasonable for a growing consumer business • Growth trajectory: Revenue increased 160% from FY 2023 to FY 2024, indicating strong business momentum • Other considerations: Strong return on equity of 95% suggests efficient capital deployment, though this may normalize as the business matures. The company's financial strength provides flexibility for expansion and weathering competitive pressures.
Recent development
Based on the financial data, Chagee has undergone dramatic growth and transformation over the past few years. The company evolved from a loss-making startup in 2022 with revenue of just $71 million and negative $13 million net income, to a highly profitable enterprise generating $1.7 billion in revenue and $345 million in net income by 2024. This remarkable 160% year-over-year revenue growth from 2023 to 2024 suggests aggressive expansion of both company-owned and franchise locations. The company's ability to scale while maintaining strong profitability margins indicates effective operational management and favorable market conditions. The substantial improvement in cash generation, from $268 million in free cash flow in 2023 to $356 million in 2024, demonstrates the business model's cash-generative nature once it reaches scale. The company has also strengthened its balance sheet significantly, building cash reserves from $327 million to $651 million, providing substantial resources for continued expansion. The progression from negative EBITDA in 2022 to over $400 million in EBITDA by 2024 illustrates the business model's operating leverage characteristics, where fixed costs are absorbed across a larger revenue base. This transformation positions Chagee as a major player in the Chinese new-style tea market with the financial resources to compete effectively against established rivals.
CHA company profile · for informational purposes only — not investment advice.
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