The company’s gross margin has consistently been below the industry average, dropping to 23% in 2024 and then recovering to 24.7% in the first three quarters of 2025—still far below the 28%–32% level of leading players. Raw material costs accounted for as much as 87.5%, and rapid expense growth further squeezed profit margins. Overall, the company’s scale advantage stands out, but its earnings are not sufficiently stable. Growth remains primarily driven by store count, and operating efficiency urgently needs improvement.
The controversy stems from survey data showing a minority, but notable share, of young workers leaning on parents throughout the hiring process. A February report from career platform Zety found that 5% of Gen Z had parents sit in virtually on job interviews. A greater share, 15%, arrived with their parents at in-person interviews.
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