Luckin Coffee Inc. reported net revenues of RMB 15.9 billion [2] for the second quarter of 2026, marking a 28.5% increase year-over-year [1].
This financial result highlights a period of aggressive physical expansion for the company. While the brand continues to capture market share through new locations, the decline in performance at existing stores suggests a potential saturation of its core markets.
The company said its store network now exceeds 36,000 locations [4]. This rapid growth contributed to a GAAP operating income of RMB 2.1 billion [3], which represents a 22% increase compared to the previous year.
Despite the overall revenue climb, the company faced headwinds regarding efficiency. Luckin Coffee said that same-store sales turned negative [5] during the period. This trend indicates that while the total number of customers is growing, the average output per individual store is decreasing.
Management also said that operating margins narrowed [6]. The company attributed this strain to the costs associated with its rapid store expansion, and the pressure to maintain competitive pricing in the Chinese market.
The company released these results on Monday, Aug. 3, before the U.S. market opened [1]. The announcement followed a press release issued on July 27 regarding the scheduled earnings date.
“Net revenues reached RMB 15.9 billion”
Luckin Coffee is currently prioritizing scale over efficiency. By expanding its footprint to over 36,000 stores, the company is securing a dominant physical presence in China, but the negative same-store sales and narrowing margins suggest that the cost of acquiring this growth is increasing. The company is now balancing the transition from a high-growth startup phase to a sustainable operational model.
