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Chinese coffee chain Luckin Coffee saw a 21.8% increase in net profit last year compared to the previous year, driven by rapid store expansion, a rise in monthly active customers, and a recovery in same-store sales.
The company reported a net profit of 3.6 billion yuan (approximately $525 million) for 2025. Revenue jumped 43%, reaching 49.2 billion yuan ($7.1 billion).
Luckin Coffee sold around 4.1 billion freshly made drinks last year, roughly equivalent to three cups per person in the country. The company added 8,708 new stores, a 39% increase year over year, bringing the total locations to 31,048. Monthly active users increased by 31.1%, and same-store sales at company-operated outlets rebounded from a 16.7% decline in 2024 to a 7.5% increase in 2025, according to the company.
The growth was partly driven by intense competition among delivery platforms in China last year. Starting in the second quarter, leading delivery services launched significant subsidies on coffee and other freshly prepared beverages, spurring a new wave of growth in the coffee and milk tea segments.
For five consecutive months starting in June, the company reported over 100 million monthly active users, based on data shared during the earnings call.
In the final quarter of the year, which ended on December 31, the off-season for freshly made drinks and easing delivery subsidies led to a 39% drop in net profit from the previous year, totaling 520 million yuan (about $75.8 million). Meanwhile, revenue increased by 32.9%, reaching 12.7 billion yuan ($1.8 billion).
The performance of same-store sales and profits in the fourth quarter was impacted by seasonal factors, shifts in delivery subsidy strategies, and product mix adjustments, all of which were anticipated, said the company’s CEO during the earnings presentation.
Looking ahead, the CEO noted that due to the high base set by last year’s extensive platform subsidies, Luckin Coffee’s same-store sales and profits might face short-term ups and downs. Nevertheless, China’s coffee market remains in a rapid growth phase, and these fluctuations are unlikely to alter the long-term growth trend.
The industry’s competitive landscape is evolving, the CEO added. Companies can no longer depend solely on pricing, a single popular product, or specific marketing campaigns to succeed. This year, Luckin Coffee plans to continue opening stores at a pace considered competitive, while adjusting its pricing strategy to maintain competitiveness and broaden its product price range.
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