Luckin Coffee (LTS:0A6U) EBIT: $738 Mil (TTM As of Mar. 2026)


LTS:0A6U Luckin Coffee Inc LTS:0A6U
83 GF Score
Price $12.54
GF Value $20.29
Valuation Significantly Undervalued
! 1 Warning Sign
View Full Analysis

What is Luckin Coffee EBIT?

Luckin Coffee LTS:0A6U 83 EBIT is $738 Mil as of Mar. 2026. GuruFocus rates LTS:0A6U with a GF Score™ of 83/100 and a GF Value™ of $20.29 (Significantly Undervalued). The stock has 1 warning sign investors should review.

Luckin Coffee's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was $112 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was $738 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Luckin Coffee's annualized ROC % for the quarter that ended in Mar. 2026 was 10.12%. Luckin Coffee's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 21.20%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Luckin Coffee's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 21.38%.


Luckin Coffee  (LTS:0A6U) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Luckin Coffee's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=428.296 * ( 1 - 34.42% )/( (2732.366 + 2821.226)/ 2 )
=280.8765168/2776.796
=10.12 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4302.247 - 728.74 - ( 1164.461 - max(0, 1207.778 - 2048.919+1164.461))
=2732.366

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=4627.093 - 896.949 - ( 1202.903 - max(0, 1357.49 - 2266.408+1202.903))
=2821.226

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Luckin Coffee's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=447.932/( ( (2003.856 + max(-174.293, 0)) + (2079.558 + max(141.501, 0)) )/ 2 )
=447.932/( ( 2003.856 + 2221.059 )/ 2 )
=447.932/2112.4575
=21.20 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(104.624 + 421.187 + 89.064) - (728.74 + 22.19 + 38.238)
=-174.293

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(119.128 + 567.704 + 376.673) - (896.949 + 25.055 + 0)
=141.501

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Luckin Coffee's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=738.494/3453.987
=21.38 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Luckin Coffee EBIT Related Terms


Luckin Coffee EBIT Historical Data

* Premium members only.

The historical data trend for Luckin Coffee's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Luckin Coffee EBIT Chart

Luckin Coffee Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only 86.40 164.99 434.47 512.34 749.70

Luckin Coffee Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 106.67 247.96 258.08 120.46 111.98

LTS:0A6U vs EAT, CAVA, BROS: EBIT Comparison

For the Restaurants subindustry, Luckin Coffee's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Luckin Coffee EV-to-EBIT vs Restaurants Industry

For the Restaurants industry and Consumer Cyclical sector, Luckin Coffee's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Luckin Coffee's EV-to-EBIT falls into.


LTS:0A6U
83GF Score
Luckin Coffee Inc LTS:0A6U
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Luckin Coffee EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was $738 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of $738 Mil mean?
Luckin Coffee (LTS:0A6U) has a EBIT of $738 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Luckin Coffee.
Is Luckin Coffee's EBIT too high?
Luckin Coffee's current EBIT is $738 Mil. Overall, Luckin Coffee has a GF Score™ of 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Luckin Coffee's EBIT compare to EAT and CAVA?
Luckin Coffee's EBIT of $738 Mil can be compared against companies in the Restaurants industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Restaurants company?
A good EBIT depends on the Restaurants industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Luckin Coffee. Luckin Coffee's current EBIT is $738 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Luckin Coffee stock overvalued right now?
Based on GuruFocus' analysis, Luckin Coffee (LTS:0A6U) is currently considered Significantly Undervalued. The stock's GF Value™ is $20.29, compared to a current price of $12.54 — trading 38.2% below its estimated fair value. The current EBIT is $738 Mil. Luckin Coffee's overall GF Score™ is 83/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Luckin Coffee (LTS:0A6U), the current EBIT is $738 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Luckin Coffee (LTS:0A6U) Overvalued in 2026?

Based on GuruFocus' analysis, Luckin Coffee stock appears to be undervalued. The current stock price of $12.54 is trading 38.2% below its estimated GF Value™ of $20.29. GuruFocus considers Luckin Coffee to be Significantly Undervalued.

Key valuation signals for LTS:0A6U:

  • EBIT: $738 Mil
  • GF Value™: $20.29 vs. price of $12.54 (38.2% below fair value)
  • GF Score™: 83/100 with 1 warning sign

No single metric tells the full story. See the LTS:0A6U stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Luckin Coffee Business Description

Other Exchanges LKNCY:USALC0A:Germany
Address 1-3 Taibei Road, 28th Floor, Building T3, Haixi Jingu Plaza, Siming District, Fujian, Xiamen, CHN, 361008
Luckin Coffee Inc operates a coffee network in China, providing retail services for freshly brewed drinks and pre-made food and beverage items. Its technology-driven model is built on mobile apps and a store network, offering a cashier-less purchase experience with features such as store selection, advance ordering, multiple payment options, and real-time order tracking. The company mainly operates self-operated pick-up stores in high-demand locations, enabling rapid and cost-efficient expansion, and also uses partnership and franchise models. It offers multiple products, including coffee, tea drinks, snacks, and light meals, with recipes tailored to local preferences, supported by sourcing and proprietary technology for operations and supply chain management.
83GF Score

Get the complete analysis for LTS:0A6U

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$12.54
Price
$20.29
GF Value