BUSINESS

Luckin Coffee Profit Falls as Delivery Costs Jump

Published: Feb. 27, 2026 6:15 p.m. GMT+8

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Luckin Coffee Inc. reported its first decline in quarterly operating profit since the beginning of 2025, as soaring delivery costs weighed on earnings.

In the fourth quarter of 2025, the Xiamen-based coffee chain reported a non-GAAP operating profit of 963.8 million yuan ($137.6 million), down from 1.1 billion yuan in the same period of 2024, on revenue of 12.8 billion yuan, up 32.9% year-on-year, according to its latest earnings report.

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Luckin Coffee's Q4 2025 operating profit fell to 963.8 million yuan from 1.1 billion yuan last year, as delivery costs rose 94.5% to 1.6 billion yuan.
Same-store sales growth dropped to 1.2% in Q4 from higher rates earlier, but revenue rose 32.9% year-on-year.
Luckin expanded rapidly with 1,834 new stores in Q4, reaching 31,048 globally and 160 overseas by end-2025.

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Who’s Who

Luckin Coffee Inc.: Luckin Coffee reported its first quarterly operating profit decline since early 2025, reaching 963.8 million yuan. This was despite a 32.9% revenue increase to 12.8 billion yuan. The profit hit was primarily due to a 94.5% surge in delivery costs amid a food delivery subsidy war. Despite this, Luckin expanded rapidly, opening 1,834 new stores in Q4 2025, bringing its total to 31,048 globally, with 20,234 self-operated locations.

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What Happened When

Same period of 2024：: Luckin Coffee reported a non-GAAP operating profit of 1.1 billion yuan for the fourth quarter.

Beginning of 2025：: Luckin Coffee had not seen a decline in quarterly operating profit before this point.

Second half of 2025：: Singapore operations turned profitable at the store level.

Fourth quarter of 2025：: Luckin Coffee reported a non-GAAP operating profit of 963.8 million yuan, down from 1.1 billion yuan in the same period of 2024.

By the end of 2025：: Luckin Coffee operated 31,048 stores globally, including 20,234 self-operated locations, becoming the first Chinese coffee chain to surpass 20,000 self-operated outlets.