Strong 2025 Performance at Mixue Group Driven by Aggressive Global Store Rollout

From Xinhua

Consumers hold Mixue beverages at Zocalo, the main central square of Mexico City, on April 1. XINHUA

Mixue Group reported robust earnings growth for 2025, driven by rapid store expansion and a supply chain-led business model, even as rising costs and intensifying competition weighed on margins.

Revenue rose 35.2 percent to 33.56 billion yuan ($4.91 billion), while net profit increased 33.1 percent to 5.93 billion yuan, the company said. Its global store count climbed to nearly 60,000 by year-end, up from 46,000 a year earlier.

The company’s scale expansion — anchored by a franchise-heavy model and centralized procurement — continued to reinforce its cost leadership in the country’s highly competitive freshly made beverage market.

As of Dec 31, Mixue Group operated 55,356 stores on the Chinese mainland, spanning 31 provincial regions and more than 300 cities. Lower-tier markets remained a key growth engine, with about 58 percent of outlets located in tier-3 cities and below.

The company opened 14,496 new franchise stores in 2025 and closed 2,527, resulting in a net increase of about 12,000 locations.

The beverage giant expanded beyond its core offerings of tea drinks, ice cream and coffee with the acquisition of fresh draft beer brand Fresh Beer Fulujia, completed in December. The brand, which sells draft beer priced at about 6 to 10 yuan per 500 milliliters, has more than 1,300 franchise stores.

For overseas markets, the company reported 4,467 stores at the end of 2025, down from 4,895 a year earlier. It entered new markets including Kazakhstan and the United States, while its coffee brand Lucky Cup debuted in Malaysia and Thailand. By year-end, the company operated across 13 countries and had established localized warehousing and logistics networks in eight.

Despite strong top-line and profit growth, margins showed signs of strain. Gross margin for product and equipment sales fell to 29.9 percent from 31.2 percent in 2024, as rising raw material costs and shifts in revenue mix weighed on profitability.

Mixue said it will continue to prioritize Southeast Asia while taking a more flexible approach to global expansion, based on local demand, store performance and broader economic conditions.