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Luckin CoffeeLKNCY +2.58%84 Interest Coverage is 1,091.99 as of Jun. 2026, which is 80% below its 10-year median of 5,445.81. GuruFocus rates LKNCY with a GF Score™ of 84/100 and a GF Value™ of $51.40 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 264 Restaurants companies, Luckin Coffee ranks better than 96.59% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Luckin Coffee's
Operating Income
for the
three
months ended in Jun. 2026 was $317 Mil. Luckin Coffee's Interest Expense for the
three
months ended in Jun. 2026 was $-0 Mil.
Luckin Coffee's interest coverage for the quarter that ended in Jun. 2026 was 1,091.99.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Luckin Coffee's Interest Coverage or its related term are showing as below:
LKNCY'
s Interest Coverage Range Over the Past 10 Years
Min: 63.42 Med: 5445.81 Max: 40810.5
Current: 2752.46
LKNCY's Interest Coverage is ranked better than 96.59% of 264
companies
in the Restaurants industry
Industry Median: 6.345
vs LKNCY: 2752.46
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Luckin Coffee Interest Coverage Related Terms
Luckin Coffee Interest Coverage Historical Data
* Premium members only.
The historical data trend for Luckin Coffee's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
LKNCY vs BROS, EAT, DPZ: Interest Coverage Comparison
For the Restaurants subindustry, Luckin Coffee's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Luckin Coffee's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Luckin Coffee's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (LKNCY) has a Interest Coverage of 1,091.99 as of Jun. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Luckin Coffee and its competitors. This is 80% below median its historical median of 5,445.81. Over the past decade, Luckin Coffee's Interest Coverage has ranged from 63.42 to 40,810.50. According to the industry distribution chart, Luckin Coffee ranks #9 out of 264 companies in the Restaurants industry, placing it in the top 3.4%.
Is Luckin Coffee's Interest Coverage too high?
Luckin Coffee's current Interest Coverage of 1,091.99 is 80% below median its 10-year median of 5,445.81. Over the past 10 years, this metric has ranged from a low of 63.42 to a high of 40,810.50. The Restaurants industry median Interest Coverage is 6.35. Luckin Coffee's value of 1,091.99 is 17110.2% above this industry median. Based on the distribution chart, Luckin Coffee ranks #9 out of 264 companies in the Restaurants industry, which is in the top quartile — a strong position relative to peers. Overall, Luckin Coffee has a GF Score™ of 84/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Luckin Coffee's Interest Coverage compare to BROS and EAT?
According to the Restaurants industry distribution chart, Luckin Coffee ranks #9 out of 264 companies for Interest Coverage. This places Luckin Coffee in the top 3% of its industry — outperforming the majority of peers. The industry median Interest Coverage is 6.35. Luckin Coffee's value of 1,091.99 is 17110.2% above this benchmark. Historically, Luckin Coffee's own Interest Coverage has ranged from 63.42 to 40,810.50 over the past decade. While the company's 10-year median is 5,445.81 vs. the industry median of 6.35, Luckin Coffee has consistently been above 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 Interest Coverage for a Restaurants company?
The median Interest Coverage among Restaurants companies is 6.35, based on 264 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Luckin Coffee's current Interest Coverage of 1,091.99 is 17110.2% above 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Luckin Coffee and its competitors. For the Restaurants industry, the median Interest Coverage is 6.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luckin Coffee's current Interest Coverage is 1,091.99, which is 80% below median its own 10-year median of 5,445.81. 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 (LKNCY) is currently considered Significantly Undervalued. The stock's GF Value™ is $51.40, compared to a current price of $36.16 — trading 29.6% below its estimated fair value. The current Interest Coverage is 1,091.99, which is 80% below median its 10-year median of 5,445.81 and 17110.2% above the Restaurants industry median of 6.35. Luckin Coffee's overall GF Score™ is 84/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Luckin Coffee (LKNCY), the current Interest Coverage is 1,091.99 as of Jun. 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 (LKNCY) Overvalued in 2026?
Based on GuruFocus' analysis, Luckin Coffee stock appears to be undervalued.
The current stock price of $36.16 is trading 29.6% below its estimated GF Value™ of $51.40.
GuruFocus considers Luckin Coffee to be Significantly Undervalued.
Key valuation signals for LKNCY:
Interest Coverage: 1,091.99 (80% below median its 10-year median of 5,445.81)
GF Value™: $51.40 vs. price of $36.16 (29.6% below fair value)
Industry Position: 17110.2% above the Restaurants median (#9 of 264)
No single metric tells the full story. See the LKNCY 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.
84GF Score
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