Chagee (NASDAQ: CHA), a Chinese tea chain, plans to open about 200 overseas stores in 2026, stepping up global expansion to counter intensifying competition at home.

Fourth-quarter overseas GMV rose 84.6% year on year to 370 million yuan (about US$54 million), with 83 net new stores taking the total to 345, the company said on an earnings call. Management said mature overseas outlets are generating higher monthly sales per store than those in China.

Founder and CEO ZHANG Junjie described 2026 as a "foundation year" for global expansion, with a focus on building a replicable profitability model across markets.

Chagee entered Indonesia, the United States, the Philippines and Vietnam in 2025, bringing its overseas footprint to seven countries. It plans to launch in South Korea in the second quarter of 2026.

The company reported full-year GMV of 31.58 billion yuan and net revenue of 12.91 billion yuan, with adjusted net profit of 1.91 billion yuan. Its global store count reached 7,453 as of end-2025.

In the United States, where its first Los Angeles store opened last year, Chagee is using a directly operated model, aiming to position Chinese tea as a mainstream lifestyle product rather than relying on franchising.

Recent product launches have supported growth. A Southeast Asia rollout of a co-branded drink with Hello Kitty gained traction, while a pu’er-tea-based series in China helped reactivate 51% of dormant users, according to management.

Chagee is also shifting to a GMV-based revenue-sharing model with franchisees, reducing reliance on raw material sales and aligning earnings more closely with store performance.

Management said operations have stabilized after internal adjustments in 2025, with early signs of improvement in same-store sales.