Luckin Coffee Q2 Revenue Jumps 28.5% to RMB15.9B, But Same-Store Sales Turn Negative
LKNCY sits 29% above its 52-week low of $27.22 on elevated volume (2.8× avg).
Summary
Luckin Coffee reported Q2 2026 revenue of RMB15.9 billion, up 28.5% year-over-year, with record 112.7 million monthly transacting customers. However, same-store sales declined 5.3%, a sharp reversal from prior growth, while the company continued its rapid store expansion and executed $195 million in share repurchases.
Key Events · Earnings and Guidance · LKNCY
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Revenue Growth with Margin Pressure
Total net revenues rose 28.5% YoY to RMB15.9 billion, driven by a 29.8% increase in GMV. GAAP operating income grew 22.0% to RMB2.1 billion, but operating margin slipped to 13.4% from 14.1% a year ago, reflecting higher material costs and increased sales and marketing spending.
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Same-Store Sales Turn Negative
Same-store sales growth for self-operated stores was negative 5.3%, a significant reversal from the 13.8% growth in Q2 2025. The decline was attributed to a high prior-year comparison base due to elevated food delivery platform subsidies in 2025.
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Record Customer Traffic
Average monthly transacting customers reached a record 112.7 million, up 22.9% YoY, reflecting the expanding store network and brand reach.
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Aggressive Store Expansion Continues
Net new store openings totaled 2,714, bringing the total store count to 36,310, including 23,734 self-operated and 12,576 partnership stores. The company expanded into new markets including Malaysia and the U.S.
Analysis · LKNCY · Trade & Services
Luckin Coffee delivered strong top-line growth with record customer traffic, but same-store sales flipped to a 5.3% decline — a sharp reversal from the 13.8% growth a year ago. The negative comps, driven by tough comparisons against elevated delivery subsidies in 2025, raise questions about underlying demand momentum even as the company continues aggressive store expansion. The $195 million in buybacks executed this quarter signals management confidence, but the margin compression and rising marketing spend suggest intensifying competition in China's coffee market.
At the time of this filing, LKNCY was trading at $35.00 on OTC in the Trade & Services sector, with a market capitalization of approximately $10B. The 52-week trading range was $27.22 to $43.64. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.