Chanson International Holding Expects Significant Progress in Store Expansion

Rhea-AI Summary

Chanson International Holding (Nasdaq: CHSN) announces plans to expand its total store count to 60 locations across China and the United States by December 2024. The company currently operates 49 stores in China, with 8 additional stores under preparation, and 3 stores in the United States. This expansion represents significant growth from 37 stores at their IPO in April 2023, exceeding their previous goal of 3-5 new stores annually. The new locations will offer packaged bakery products, fresh pastries, and beverages, focusing on healthy, ready-to-eat options in a café setting.

Positive

• Rapid store expansion from 37 to 60 locations since April 2023 IPO
• Exceeding previous growth target of 3-5 new stores annually
• Geographic diversification across China and US markets

Negative

• None.

Insights

Market Research Analyst

The rapid store expansion from 37 to 60 locations represents a 62% growth in just 8 months, significantly outpacing the original target of 3-5 new stores annually. This aggressive expansion strategy in both China and US markets shows strong execution capability and confidence in the business model. However, investors should monitor key metrics:

• Capital expenditure requirements for new store buildouts
• Same-store sales performance to validate expansion strategy
• Operating margins as the company scales
• Time to profitability for new locations

While rapid expansion can drive revenue growth, it also increases operational complexity and financial risks. The focus on premium positioning with fresh products and café ambiance suggests higher operating costs but potential for better margins if executed well.

Financial Analyst

With a market cap of $175.3M, this expansion represents a significant scaling opportunity but also requires careful capital allocation. The accelerated growth trajectory suggests strong unit economics in existing stores, though detailed financial metrics are needed to validate this assumption. Key considerations include:

• Working capital requirements for inventory and equipment
• Lease obligations and associated fixed costs
• Impact on cash flow during the ramp-up period

The dual-market strategy in China and US provides geographical diversification but adds complexity to supply chain and operations management. Success will depend on maintaining quality standards while achieving economies of scale.

URUMQI, China, Nov. 21, 2024 (GLOBE NEWSWIRE) -- Chanson International Holding (Nasdaq: CHSN) (the “Company” or “Chanson”), a provider of bakery, seasonal, and beverage products through its chain stores in China and the United States, today announced that it expects its total number of chain stores across China and the United States to reach 60 by the end of December 2024. This milestone reflects the Company’s commitment to accelerating business growth and enhancing its market presence in both China and the United States.

Chanson currently manages 49 stores in China with eight additional stores that are being furnished and set to open by December 31, 2024, along with three stores in the United States. The expansion brings Chanson’s total store count to 60 across China and the United States, marking a significant growth from the 37 stores Chanson operated when its initial public offering was completed in April 2023, and surpassing Chanson’s previous goal of opening three to five new stores annually. At the new stores scheduled to open by December 31, 2024, Chanson expects to deliver a curated selection of packaged bakery products, freshly made pastries, and an extensive beverage menu, focusing on healthy, ready-to-eat options, along with impeccable service in a cozy café ambiance, fostering guest relaxation and meaningful social interactions.

Mr. Gang Li, Chairman of the Board of Directors and Chief Executive Officer of Chanson, commented, “We believe our commitment to great in-store service and high-quality offerings is the cornerstone of our success, ensuring operational standards while expanding our market reach. Our expansion strategy allows us to optimize resource allocation and respond to customer demands swiftly and effectively, ultimately driving growth in key markets. As part of our long-term vision, we are dedicated to enhancing our brand presence across China and the United States, delivering outstanding dining experiences to guests. This strategy not only accelerates store openings but also strengthens our position as a trusted and innovative leader in the bakery and beverage industry. We are confident that our focus on service excellence and quality will continue to drive sustainable growth and customer loyalty.”

About Chanson International Holding

Founded in 2009, Chanson International Holding is a provider of bakery, seasonal, and beverage products through its chain stores in China and the United States. Headquartered in Urumqi, China, Chanson directly operates stores in Xinjiang, China and New York, United States. Chanson currently manages chain stores in China and New York City while selling on digital platforms and third-party online food ordering platforms. Chanson offers not only packaged bakery products but also made-in-store pastries and eat-in services, serving freshly prepared bakery products and extensive beverage products. Chanson aims to make healthy, nutritious, and ready-to-eat food through advanced facilities based on in-depth industry research, while creating a comfortable and distinguishable store environment for customers. Chanson's dedicated and highly-experienced product development teams constantly create new products that reflect market trends to meet customer demand. For more information, please visit the Company's website: http://ir.chanson-international.net/.

Forward-Looking Statements

Certain statements in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission.

For investor and media inquiries, please contact:

Chanson International Holding
Investor Relations Department
Email: IR@chansoninternational.com

Ascent Investor Relations LLC
Tina Xiao
Phone: +1-646-932-7242
Email: investors@ascent-ir.com

FAQ

How many stores will Chanson International Holding (CHSN) have by December 2024?

Chanson International Holding expects to have 60 total stores across China and the United States by December 2024.

How many stores did Chanson (CHSN) have at its IPO in April 2023?

Chanson operated 37 stores when its initial public offering was completed in April 2023.

What is Chanson's (CHSN) current store distribution between China and US?

Chanson currently operates 49 stores in China (with 8 additional stores being furnished) and 3 stores in the United States.