Luckin Coffee (LKNC) Q3 2024 earnings summary

Executive summary

• Achieved record quarterly revenue of RMB 10.2 billion, up 41.4% year-over-year, with both revenue and profit at all-time highs for Q3 2024.

• Store network expanded by 1,382 net new stores, reaching 21,343 globally, including 13,936 self-operated and 7,407 partnership stores.

• Cumulative transacting customers exceeded 300 million, with average monthly transacting customers reaching 79.85 million, up over 10 million sequentially and 36.5% year-over-year.

• Continued domestic growth and gradual international expansion, with 45 stores in Singapore and ongoing evaluation of U.S. market entry.

• Broke ground on a new Innovation and Production Center in Qingdao to enhance supply chain and efficiency.

Financial highlights

• Total net revenue reached RMB 10.2 billion, up 41.4% year-over-year from RMB 7.2 billion.

• Operating profit was RMB 1,557.5 million, with an operating margin of 15.3%, up from 13.4% last year.

• Net profit was RMB 1,302.6 million, reflecting a net margin of 12.8%, slightly down from 13.7% last year.

• Self-operated store operating profit was RMB 1.75 billion, with a margin of 23.3%.

• Revenues from partnership stores grew 27.2% year-over-year to RMB 2,341.3 million.

Outlook and guidance

• Plans to deepen domestic store layout, expand market share, and consolidate leading edge in China.

• Focus remains on product innovation, marketing, and expanding store network domestically and internationally.

• Continued investment in supply chain and sustainability initiatives to support long-term growth.

• Expects further improvement in same-store sales growth as expansion pace stabilizes and price gaps narrow.

• International expansion, especially in Singapore and potential U.S. entry, will require long-term investment before profitability.