Luckin Coffee Revenue Climbs 29% as Store Count Surpasses 36,000
China's coffee chain added more than 5,000 locations in the first half while same-store sales dipped on tougher comparisons.
Revenue Growth Driven by Network Expansion
Luckin Coffee reported second-quarter revenue of approximately RMB 13.9 billion, a 29% increase year-over-year, as the Chinese coffee chain continued its aggressive store expansion strategy (earnings call, 2026-08-03). The company's gross merchandise volume rose 30% to RMB 18.4 billion during the quarter.
The Xiamen-based chain, which has emerged as a formidable competitor to Starbucks in China, ended the quarter with 36,310 stores globally, up 39% from the prior year. The company added a net 2,668 stores in China during the quarter alone, bringing its domestic footprint to 36,080 locations, including 23,825 self-operated stores and 12,462 partnership stores (earnings call, 2026-08-03).
Same-Store Sales Decline on Subsidy Comparisons
Despite robust top-line growth, same-store sales at self-operated locations declined 5.3% year-over-year in the second quarter. CEO Guo Jinyi attributed the decline to "the temporary high comparison base created by elevated full delivery subsidies in the prior year period," noting the performance was "fully consistent with our previous expectations" (earnings call, 2026-08-03).
Operating income grew 22% to RMB 2.1 billion, with an operating margin of 13.4%, as competitive delivery subsidies "gradually returned to more rational levels" (earnings call, 2026-08-03). The company characterized this as a recovery in profitability.
Customer Base Reaches New Milestone
Luckin added more than 25 million new transacting customers during the quarter, bringing average monthly transacting customers to a record high of over 110 million, up 23% year-over-year. Cumulative transacting customers approached 500 million by quarter-end (earnings call, 2026-08-03).
The company launched 28 new freshly brewed beverages during the quarter, with its "Little Butter Americano" ranking among the top two best-selling products by volume. The Little Butter series surpassed 500 million cumulative cups sold by the end of the quarter (earnings call, 2026-08-03).
International Footprint Expands
Luckin continued its measured international expansion, adding 46 net new stores to bring its overseas count to 223 locations across Singapore, the United States, and Malaysia. The company operates 89 self-operated stores in Singapore, 20 in the U.S., and 114 franchise stores in Malaysia (earnings call, 2026-08-03).
CFO An Jing noted that revenues from product sales increased 29% to RMB 12.2 billion, with freshly brewed drinks representing approximately 70% of total net revenues at RMB 11.2 billion (earnings call, 2026-08-03).
The company emphasized its "high-quality scale growth strategy," positioning itself to capture what it described as "historic opportunities presented by China's coffee market" as consumption habits continue to mature in the country (earnings call, 2026-08-03).
This article was generated by MarginX from the earnings call on 2026-08-03. It is not investment advice.