Q3 2025 Luckin Coffee Inc Earnings Call Transcript
Key Points
- Luckin Coffee Inc (LKNCY) reported a 15% year-over-year increase in revenue, reaching approximately RMB 13.3 billion.
- The company achieved a same-store sales growth of 14.4% in its self-operated stores.
- Luckin Coffee Inc (LKNCY) expanded its store network significantly, surpassing 29,000 total stores, which enhances its market presence.
- The company added over 42 million new transacting customers in the third quarter, achieving an average of over 110 million monthly transacting customers.
- Luckin Coffee Inc (LKNCY) launched nearly 13 new beverages and several new items, showcasing strong product innovation and market trend-setting capabilities.
- Delivery expenses increased significantly by 211% year-over-year, impacting the company's operating margin.
- The company's operating margin decreased to 11.6% from 15.5% in the prior year period, mainly due to higher delivery expenses.
- International green coffee bean prices remain elevated, posing potential challenges to coffee bean costs and margins.
- The company faces short-term fluctuations and pressure on same-store sales growth due to the evolving external environment.
- Luckin Coffee Inc (LKNCY) anticipates challenges in the fourth quarter and next year due to the scaling back of food delivery platform subsidies.
Ladies and gentlemen, welcome to Luckin Coffee's third quarter 2025 earnings conference call. (Operator Instructions) Please be advised that today's call is being recorded. Now I'd like to turn the call over to Ms. Nancy Song, Head of Investor Relations for Luckin Coffee. Nancy, please go ahead.
Thank you, and hello, everyone. Welcome to Luckin Coffee's Third Quarter 2025 Earnings Conference Call. We announced our financial results earlier today before the U.S. market opened. The earnings release is now available on our IR website and via Newswire services.
Today, you will hear from Dr. Guo Jinyi, Co-Founder and CEO of Luckin Coffee, who will share a strategic overview of our business. Following that, Ms. An Jing, our CFO, will discuss our financial results in greater detail. Afterwards, we will open up the call for questions.
During today's call, we will be making some forward-looking statements regarding future events and expectations. Any statements that are not historical facts
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