Luckin Coffee Q2 2026 Net Revenue Rises 28.5% to RMB15.886 Billion; Global Stores Reach 36,310

Luckin Coffee released its second-quarter 2026 financial results on August 3. During the quarter, total net revenue reached RMB15.886 billion, up 28.5% year on year. GAAP operating profit was RMB2.123 billion, up 22.0%, representing an operating margin of 13.4%. Net profit came in at RMB1.486 billion, up 16.1%. Monthly average transacting customers hit a record 112.7 million, up 22.9%. As of the end of the quarter, the company operated 36,310 stores globally, and cumulative transacting customers approached 500 million. On store expansion, Luckin added 2,714 net new stores in the second quarter, including 2,668 in China and 46 overseas. In the first half of the year, net store additions exceeded 5,000. As of the end of the quarter, China store count reached 36,087, comprising 23,625 self-operated stores and 12,462 franchised stores. Revenue from self-operated stores was RMB11.564 billion, up 26.6%; store-level operating profit at self-operated stores was RMB2.469 billion, up 25.9%, with a store-level operating margin of 21.3%. Franchised store revenue was RMB3.668 billion, up 27.9%. GMV grew 29.8% year on year to RMB18.4 billion. Same-store sales growth at self-operated stores was negative 5.3%, compared with 13.8% in the same period of 2025. Delivery costs in the second quarter were RMB1.618 billion, down 3.1% year on year, and declined from approximately 13.5% of total net revenue in 2025 to approximately 10.2%. On products, Luckin launched 28 freshly made beverages and more than a dozen light food items in the quarter. Little Butter Americano became one of the top two best-selling single products, and cumulative sales of the Little Butter series exceeded 500 million cups by the end of the quarter. Little Green Mandarin Americano sold more than 10 million cups in its first week on the market. As of the end of the quarter, 25 products had cumulative sales exceeding 100 million cups, of which five were non-coffee items. The bottled ready-to-drink business, Luckin Instant, launched on April 28 with three products: Classic Americano, Yuzu Americano and Coconut Latte, priced at RMB6 to RMB7 per bottle. Provincial distributor recruitment has been completed in Hebei, Shaanxi, Jiangsu and Shanghai. On international markets, the company had 223 overseas stores at the end of the quarter, including 89 self-operated stores in Singapore, 20 self-operated stores in the United States and 114 franchised stores in Malaysia. Management said overseas expansion remains in the stage of refining the single-store economic model and accumulating operational experience. On capital allocation, in April 2026 Luckin announced a share buyback plan of up to USD300 million. In the second quarter, the company spent USD195.1 million to repurchase shares equivalent to 6.1 million American Depositary Shares, representing about 65% of the buyback plan. Net cash generated from operating activities during the quarter was RMB2.625 billion. As of the end of the quarter, cash, time deposits and short-term investments totaled RMB10.926 billion, while new short-term bank borrowings of RMB1.945 billion were added to the balance sheet. Management said the use of short-term borrowings is part of its capital allocation strategy to support shareholder return plans, and the company maintains net cash of approximately RMB9 billion. Luckin Coffee Chief Executive Officer Guo Jinyi said at the earnings call that China's coffee market remains in a phase of rapid growth, with penetration and consumption frequency continuing to rise. The ceiling for store count in the market is still high and continues to expand as coffee penetration and consumption frequency improve. Luckin will maintain its pace of store openings to increase market share.