People walk past a MIXUE Ice Cream & Tea outlet in Yantai, China, on April 1, 2025. (Photo by Costfoto/NurPhoto via Getty Images)
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Mixue Group shares slid more than 7% in Hong Kong trading on Friday, deepening a two-day selloff after the Chinese ice cream and beverage giant posted weaker first-half earnings.
The decline followed an 8.37% drop on Thursday, the day Mixue disclosed that net profit for the six months ended June fell 14.7% from a year earlier to 2.32 billion yuan, or about $345.2 million. Revenue, however, edged up 2.3% to 15.22 billion yuan.
Alongside the results, the company put forward a special dividend plan of 2.65 yuan per share, which still requires approval from shareholders.
Mixue said its margins were squeezed as costs rose more quickly than sales. The company pointed to spending on product-quality upgrades as a key reason cost of sales outpaced revenue growth. Selling and distribution expenses climbed 22.9%, driven by higher marketing outlays and staff-related costs, while administrative expenses surged 39.4%, also largely because of increased personnel costs.
Despite the profit pressure, Mixue Group remains one of the world’s largest food and beverage chains by store count. As of the end of June, its global network had grown to nearly 63,987 locations — more than McDonald’s and over four times the footprint of Dunkin’. The brand has built its popularity around low-cost drinks and frozen treats, including its well-known King Cone vanilla ice cream.
Most Mixue stores are still located in mainland China, but the company is steadily pushing further overseas. By the end of June, it operated 4,378 international outlets and had been moving into additional regions, including Central Asia and the Americas.
Looking ahead, the company said it plans to deepen its presence in Southeast Asia and push further into central Asia and the Americas, while building a more localized supply chain to support its overseas expansion.
The company is also looking beyond drinks, with plans to turn its Snow King mascot into a global cultural brand through animated series, comics, movies, featured merchandise and even theme parks.
