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Luckin CoffeeLTS:0A6U 83 Gross Margin % is 34.02% as of Mar. 2026, which is 14% above its 10-year median of 29.94. GuruFocus rates LTS:0A6U with a GF Score™ of 83/100 and a GF Value™ of $19.82 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 354 Restaurants companies, Luckin Coffee ranks worse than 63.84% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Luckin Coffee had a gross margin of 34.02% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Luckin Coffee Gross Margin % Related Terms
Luckin Coffee Gross Margin % Historical Data
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The historical data trend for Luckin Coffee's Gross Margin % 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.
LTS:0A6U vs EAT, CAVA, BROS: Gross Margin % Comparison
For the Restaurants subindustry, Luckin Coffee's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Luckin Coffee's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Luckin Coffee's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Luckin Coffee (LTS:0A6U) has a Gross Margin % of 34.02% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Luckin Coffee and its competitors. This is 14% above median its historical median of 29.94. According to the industry distribution chart, Luckin Coffee ranks #226 out of 354 companies in the Restaurants industry, placing it in the top 63.8%.
Is Luckin Coffee's Gross Margin % too high?
Luckin Coffee's current Gross Margin % of 34.02% is 14% above median its 10-year median of 29.94. The Restaurants industry median Gross Margin % is 45.69. Luckin Coffee's value of 34.02% is 25.5% below this industry median. Based on the distribution chart, Luckin Coffee ranks #226 out of 354 companies in the Restaurants industry, which is below the industry midpoint. 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 Gross Margin % compare to EAT and CAVA?
According to the Restaurants industry distribution chart, Luckin Coffee ranks #226 out of 354 companies for Gross Margin %. This places Luckin Coffee in the lower half of its industry. The industry median Gross Margin % is 45.69. Luckin Coffee's value of 34.02% is 25.5% below this benchmark. While the company's 10-year median is 29.94 vs. the industry median of 45.69, Luckin Coffee has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.69, based on 354 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Luckin Coffee's current Gross Margin % of 34.02% is 25.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Luckin Coffee and its competitors. For the Restaurants industry, the median Gross Margin % is 45.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luckin Coffee's current Gross Margin % is 34.02%, which is 14% above median its own 10-year median of 29.94. 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 $19.82, compared to a current price of $12.54 — trading 36.7% below its estimated fair value. The current Gross Margin % is 34.02%, which is 14% above median its 10-year median of 29.94 and 25.5% below the Restaurants industry median of 45.69. 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 Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Luckin Coffee (LTS:0A6U), the current Gross Margin % is 34.02% 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 36.7% below its estimated GF Value™ of $19.82.
GuruFocus considers Luckin Coffee to be Significantly Undervalued.
Key valuation signals for LTS:0A6U:
Gross Margin %: 34.02% (14% above median its 10-year median of 29.94)
GF Value™: $19.82 vs. price of $12.54 (36.7% below fair value)
Industry Position: 25.5% below the Restaurants median (#226 of 354)
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 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
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