Luckin Coffee Inc (LKNCY)
OTHER OTC:LKNCY
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Luckin Coffee
(OTC:LKNCY)
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Rating:72Outperform
Price Target:
$40.00
▲(19.33% Upside)
Action:UpgradedDate:04/30/26
The score is driven primarily by solid fundamentals (strong growth and operating profitability) tempered by rising leverage and softer net/quarterly profitability. Valuation is a major positive due to the extremely low P/E, while technicals are mixed with negative momentum signals. Earnings-call commentary supports the long-term expansion narrative but flags near-term margin and same-store-sales volatility.
Positive Factors
Rapid Revenue & Customer Growth
Luckin’s large, fast-growing top line and customer base indicate durable product-market fit and demand elasticity. Sustained high cup volumes and massive transactor additions expand repeat purchase opportunity and allow scale to amplify unit economics across stores and digital channels over the next several quarters.
Negative Factors
Rising Leverage
The marked increase in leverage reduces balance-sheet flexibility and raises refinancing and interest-rate exposure. If same-store sales or margins weaken, higher debt amplifies downside, limits discretionary investment, and could force trade-offs between growth and capital preservation over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Rapid Revenue & Customer Growth
Luckin’s large, fast-growing top line and customer base indicate durable product-market fit and demand elasticity. Sustained high cup volumes and massive transactor additions expand repeat purchase opportunity and allow scale to amplify unit economics across stores and digital channels over the next several quarters.
Read all positive factors
Luckin Coffee (LKNCY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.32B
Dividend YieldN/A
Average Volume (3M)1.24M
Price to Earnings (P/E)2.7
Beta (1Y)0.33
Revenue Growth43.28%
EPS Growth21.01%
CountryUS
Employees33,795
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)0.03
Shares Outstanding269,267,180
10 Day Avg. Volume1,602,044
30 Day Avg. Volume1,241,210
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)0.55
Price to Sales (P/S)0.20
P/FCF Ratio2.77
Enterprise Value/Market Cap8.53
Enterprise Value/Revenue2.61
Enterprise Value/Gross Profit4.54
Enterprise Value/Ebitda19.84
Forecast
1Y Price Target
$45.00Price Target Upside34.25% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)12.93
Revenue Forecast (FY)$59.48B
Luckin Coffee Business Overview & Revenue Model
Company Description
Luckin Coffee Inc. engages in the retail services of freshly brewed coffee and non-coffee drinks in the People's Republic of China. It also offers hot and iced freshly brewed coffee, such as Americano, Latte, Cappuccino, Macchiato, Flat White, and...
How the Company Makes Money
Luckin Coffee makes money primarily by selling beverages and food to end customers through its retail coffee network. Its core revenue stream is product sales (especially coffee and other drinks) fulfilled via in-store pickup and other store-based...
Luckin Coffee Earnings Call Summary
Earnings Call Date:Feb 26, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Aug 04, 2026
Earnings Call Sentiment Positive
The call emphasized strong full-year growth across revenue, profits, customer additions and store expansion, supported by a materially improved cash position and validated international pilots. However, management flagged near-term headwinds: Q4 same-store sales moderation, notable quarterly margin contraction, and sharply higher delivery and operating expenses driven by changing subsidy dynamics. Management frames these as expected, short-term effects and reiterated a scale-focused, disciplined growth strategy with continued product innovation and digital/AI investments. On balance, the company delivered sizable structural gains while acknowledging temporary profitability pressure and market volatility.Positive Updates
Strong Full-Year Revenue and Profit Growth
Total net revenues increased 43% year-over-year to RMB 49.3 billion for FY2025. GAAP operating profit rose 42% to ~RMB 5.1 billion (operating margin 10.3%). Non-GAAP operating profit increased 43% to ~RMB 5.6 billion (non-GAAP margin 11.5%). Net profit grew 22% to RMB 3.6 billion (net margin 7.3%); non-GAAP net profit up 27% to RMB 4.2 billion (non-GAAP net margin 8.5%).
Negative Updates
Q4 Same-Store Sales Moderation
Same-store sales for self-operated stores moderated to +1.2% in Q4 (contrast to FY2025 same-store sales growth of 7.5%), reflecting seasonality, changing food-delivery subsidy dynamics and cup-mix shifts.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Full-Year Revenue and Profit Growth
Total net revenues increased 43% year-over-year to RMB 49.3 billion for FY2025. GAAP operating profit rose 42% to ~RMB 5.1 billion (operating margin 10.3%). Non-GAAP operating profit increased 43% to ~RMB 5.6 billion (non-GAAP margin 11.5%). Net profit grew 22% to RMB 3.6 billion (net margin 7.3%); non-GAAP net profit up 27% to RMB 4.2 billion (non-GAAP net margin 8.5%).
Read all positive updates
Company Guidance
Guidance for 2026 is to continue a disciplined, agile, scale-focused expansion while protecting healthy profitability — with management reiterating market‑share growth as the top priority, a focus on stores, costs and pricing, and an expectation of near‑term volatility in same‑store sales and margins as food‑delivery subsidies normalize and 2025’s high base rolls off. They plan to “maintain an industry‑leading pace” of openings and tightly monitor store ramp‑up and maturation, building on 2025 results (total net revenue RMB49.3bn, +43% YoY; GAAP operating profit RMB5.1bn, +42%, 10.3% margin; non‑GAAP operating profit RMB5.6bn, 11.5% margin; net profit RMB3.6bn, 7.3% margin; year‑end cash ~RMB9.0bn). Operational anchors cited to drive growth include the 31,048 stores network (30,888 domestic: 20,144 self‑operated, 10,744 partnership; +1,792 net China stores in Q4), international rollout (160 overseas stores: 81 SG, 9 US, 70 MY), a customer base of >450m cumulative (≈110m new transactors in 2025; average monthly transacting users >98m and >100m for five months), 4.1bn freshly brewed cups (+39%) and >20% of cups from non‑coffee items. Management also flagged delivery dynamics as a margin headwind to watch (delivery expense up 94% to RMB1.6bn, 13% of revenue in Q4) but said continued product innovation, broader pricing architecture, digital/AI efficiency gains and tighter cost management will underpin longer‑term same‑store sales recovery and margin improvement.Luckin Coffee Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
67
Positive
Cash Flow
61
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 47.95B | 34.96B | 24.90B | 13.53B | 7.86B |
| Gross Profit | 28.16B | 19.44B | 13.40B | 7.86B | 4.25B |
| EBITDA | 6.55B | 7.09B | 5.12B | 2.78B | 2.10B |
| Net Income | 3.50B | 2.97B | 2.85B | 496.82M | 571.05M |
Balance Sheet | |||||
| Total Assets | 30.32B | 23.10B | 18.29B | 10.48B | 12.31B |
| Cash, Cash Equivalents and Short-Term Investments | 8.21B | 5.74B | 3.49B | 3.53B | 6.48B |
| Total Debt | 11.59B | 6.01B | 4.97B | 1.91B | 4.10B |
| Total Liabilities | 13.17B | 10.05B | 10.16B | 5.43B | 8.68B |
| Stockholders Equity | 17.15B | 13.05B | 8.14B | 5.05B | 5.15B |
Cash Flow | |||||
| Free Cash Flow | 3.39B | 1.93B | 143.73M | -781.20M | -49.77M |
| Operating Cash Flow | 5.94B | 4.23B | 2.90B | 19.82M | 123.45M |
| Investing Cash Flow | -7.59B | -3.21B | -3.45B | -798.05M | 337.00K |
| Financing Cash Flow | -324.51M | 333.60M | 0.00 | -2.28B | 1.51B |
Luckin Coffee Technical Analysis
Neutral
33.52
Price Trends
34.72
Negative
34.68
Negative
36.56
Negative
Market Momentum
-0.26
Negative
52.10
Neutral
78.82
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LKNCY, the sentiment is Neutral. The current price of 33.52 is above the 20-day moving average (MA) of 32.68, below the 50-day MA of 34.72, and below the 200-day MA of 36.56, indicating a neutral trend. The MACD of -0.26 indicates Negative momentum. The RSI at 52.10 is Neutral, neither overbought nor oversold. The STOCH value of 78.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LKNCY.
Luckin Coffee Risk Analysis
Luckin Coffee disclosed 108 risk factors in its most recent earnings report. Luckin Coffee reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Luckin Coffee Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $10.32B | 2.68 | 24.49% | ― | 43.28% | 21.01% | |
65 Neutral | $120.24B | 48.35 | -18.33% | 2.88% | 5.88% | -52.37% | |
65 Neutral | $9.12B | 96.10 | 12.41% | ― | 27.88% | 84.61% | |
63 Neutral | $10.61B | 109.16 | 8.43% | ― | 22.41% | -51.61% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $795.58M | 15.51 | 2.96% | ― | 20.34% | 1.34% | |
44 Neutral | $803.06M | -5.97 | -33.40% | ― | 0.39% | -43.73% |
* Consumer Cyclical Sector Average
LKNCY
Luckin Coffee
35.00
1.50
4.48%
SBUX
Starbucks
105.33
25.52
31.98%
BROS
Dutch Bros Inc
55.34
-4.62
-7.71%
FWRG
First Watch Restaurant Group
12.91
-5.38
-29.41%
SG
Sweetgreen
6.76
-12.92
-65.65%
CAVA
CAVA Group, Inc.
91.11
-3.42
-3.62%
Luckin Coffee Corporate Events
Luckin Coffee Posts Strong Q1 2026 Growth, Unveils $300 Million Buyback
Apr 29, 2026
Luckin Coffee, a major Chinese coffee chain, reported unaudited financial results for the quarter ended March 31, 2026, showing rapid expansion despite margin pressure. Total net revenues rose 35.3% year over year to RMB11.996 billion, driven by 2...
Luckin Coffee Files 2025 Form 20-F Annual Report With U.S. SEC
Mar 27, 2026
Luckin Coffee said on March 27, 2026 that it had filed its annual report on Form 20-F for the fiscal year ended Dec. 31, 2025 with the U.S. Securities and Exchange Commission. The filing provides audited consolidated financial statements under U.S...
Luckin Coffee Posts Strong 2025 Growth as Store Expansion Lifts Revenue but Squeezes Margins
Feb 26, 2026
Luckin Coffee reported unaudited results for the fourth quarter and full year 2025 on February 26, 2026, highlighting rapid expansion and robust revenue growth driven by store openings and customer gains. The chain ended 2025 with 31,048 stores af...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.