Wall Street Zen upgraded Chagee Holdings from buy to strong-buy on Saturday. This rating change follows a management shift within a primary subsidiary.
Founder Zhang Junjie stepped down as chairman and legal representative of Chagee (Shanghai) Business Management Co., Ltd. on September 4. Company sources describe the move as a routine corporate registration change. Zhang remains chairman of the Nasdaq-listed parent company, CHAGEE Holdings Limited. He retains approximately 88% of the total voting rights.
Management designated 2026 as a year of adjustment and stabilization. The company plans to slow store expansion to prioritize profitability. Reduced operating expenses will drive this margin improvement.