Luckin Coffee Reports 28.5% Revenue Growth as Store Count Surpasses 36,000
The Chinese coffee chain added 2,714 net new stores in Q2 2026 while monthly transacting customers reached a record 112.7 million, though same-store sales declined.
Strong Top-Line Growth Amid Aggressive Expansion
Luckin Coffee reported total net revenues of RMB15.9 billion ($2.34 billion) for the three months ended June 30, 2026, representing a 28.5% year-over-year increase, according to its 6-K filing. The growth was primarily driven by a 29.8% increase in gross merchandise value to RMB18.4 billion, reflecting both expanded store footprint and higher customer traffic (6-K filing, 2026-08-03).
The company added 2,714 net new stores during the quarter, comprising 2,668 stores in mainland China and Hong Kong, 31 in Malaysia, 8 in the U.S., and 7 in Singapore. Total store count reached 36,310 at quarter-end, split between 23,734 self-operated locations and 12,576 partnership stores—an 8.1% increase from the first quarter (6-K filing, 2026-08-03).
Average monthly transacting customers reached a record high of 112.7 million, up 22.9% year-over-year, as CEO Dr. Jinyi Guo noted that cumulative transacting customers are "approaching 500 million" (6-K filing, 2026-08-03).
Same-Store Sales Decline Reflects Tough Comparisons
Despite robust overall growth, same-store sales for self-operated locations fell 5.3%, a significant reversal from 13.8% growth in Q2 2025. The company attributed this decline to "a high prior-year comparison base due to elevated subsidies offered by food delivery platforms during that period" (6-K filing, 2026-08-03).
Revenues from self-operated stores increased 26.6% to RMB11.6 billion ($1.70 billion), while partnership store revenues rose 27.9% to RMB3.7 billion ($539.5 million). Store-level operating margin for self-operated locations was 21.3%, down slightly from 21.5% in the prior-year quarter (6-K filing, 2026-08-03).
Margin Pressure From Rising Costs
GAAP operating income grew 22.0% to RMB2.1 billion ($312.3 million), though operating margin contracted to 13.4% from 14.1% a year earlier. Non-GAAP operating margin also declined to 15.1% from 15.3% (6-K filing, 2026-08-03).
Operating expenses increased 29.6% to RMB13.8 billion, outpacing revenue growth. Cost of materials jumped 34.3% to RMB6.1 billion, reflecting "fluctuations in certain raw material prices," while sales and marketing expenses surged 56.1% to RMB925.1 million due to higher advertising spending and commissions to third-party delivery and live streaming platforms (6-K filing, 2026-08-03).
Net income rose 16.1% to RMB1.5 billion ($218.7 million), with net margin compressing to 9.4% from 10.4%. Non-GAAP net income increased 22.8% to RMB1.8 billion (6-K filing, 2026-08-03).
Capital Allocation and Outlook
Luckin Coffee repurchased 48.9 million Class A ordinary shares for $195.1 million during the quarter under its $300 million buyback program announced in April 2026. Operating cash flow reached RMB2.6 billion, up from RMB2.6 billion in the prior-year period (6-K filing, 2026-08-03).
The company maintained its confidence in capturing growth opportunities in China's evolving coffee market, citing "industry-leading store expansion, continuous product innovation and deeper customer engagement" as key competitive advantages (6-K filing, 2026-08-03).
MarginX data shows the Federal Reserve's next rate decision is scheduled for September 16, 2026, with projections, followed by another decision on October 28, 2026.
This article was generated by MarginX from the 6-K filing on 2026-08-03. It is not investment advice.