Hong Kong, 1 December 2025 – Chagee’s same-store sales are expected to remain under pressure in the fourth quarter, according to Citi analysts Xiaopo Wei and Vincent Young. The company has largely stayed out of the ongoing price war in China since the second quarter, focusing instead on its premium positioning, which has weighed on quarterly sales sequentially.

Citi has revised down Chagee’s adjusted net profit projections by 19% for 2025, 22% for 2026, and 24% for 2027, reflecting weaker top-line estimates. Despite this, the analysts noted a positive surprise in Chagee’s special dividend of $0.92 per ADR and its continued focus on cash returns to shareholders.

As a result, Citi has trimmed its ADR target price to $24.60 from $29.50 but maintains a buy/high-risk rating. Chagee’s ADR closed 6.1% higher at $14.99 following the announcement.