Mixue reports 35% revenue growth in 2025 despite China’s beverage price war pressures
Mixue posts strong 2025 revenue and profit growth, navigating China’s intense beverage price war while expanding globally and facing margin pressures from rising costs.
CHINA – MIXUE Group, China’s largest bubble tea chain, has reported a strong rise in revenue and profit for 2025, demonstrating resilience amid an intense price war across the country’s food and beverage sector.
The company said revenue increased by 35 per cent to 33.6 billion yuan (US$4.7 billion), exceeding the average analyst estimate of 32.94 billion yuan. Net profit rose by 33 per cent, outperforming consensus expectations of 31 per cent growth.
The results come as China’s beverage and restaurant industry faces heavy competition, with companies engaging in aggressive price promotions to attract consumers.
MIXUE launched online campaigns in 2025 offering milk tea products for as little as two yuan per drink, intensifying competition across the sector.
Despite its strong financial performance, MIXUE has faced pressure in capital markets. The company, which went public in Hong Kong in March 2025, has seen its share price decline as investors remain cautious about profitability amid sustained discounting and rising costs.
UBS analysts downgraded the stock to “neutral” from “buy” in January, citing near-term challenges. Analysts, including Christine Peng, pointed to “higher raw material costs, a higher delivery mix and intensifying competition” as factors expected to weigh on margins, adding that the company’s 2026 gross profit margin could decline from 2025 levels.
There are signs that the sector’s price war may be easing. Major restaurant and beverage chains have begun raising prices on food delivery platforms, while China’s top antitrust regulator launched an investigation in January into competition practices in the online food delivery market.
The probe follows concerns that major platforms, including Alibaba Group, Meituan and JD.com, have invested heavily in subsidies to gain market share.
MIXUE remains the world’s largest food and beverage chain by store count, operating 55,356 outlets in China and approximately 4,500 overseas locations as of the end of 2025.
The company is also pursuing international expansion, with new stores planned in Los Angeles and New York City.
Across the broader sector, several operators have reported weaker financial results. Luckin Coffee, China’s largest coffee chain, recently posted lower-than-expected revenue and a decline in operating margin, driven in part by rising delivery expenses.
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