Luckin Coffee (STU:LC0A) Operating Income: €687 Mil (TTM As of Jun. 2026)

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STU:LC0A Luckin Coffee Inc STU:LC0A
74 GF Score
Price €31.00
GF Value €43.94
Valuation Modestly Undervalued
! 1 Warning Sign
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What is Luckin Coffee Operating Income?

Luckin Coffee STU:LC0A +3.68% 74 Operating Income is €687 Mil as of Jun. 2026. GuruFocus rates STU:LC0A with a GF Score™ of 74/100 and a GF Value™ of €43.94 (Modestly Undervalued). The stock has 1 warning sign investors should review.

Luckin Coffee's Operating Income for the three months ended in Jun. 2026 was €275 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 was €687 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Luckin Coffee's Operating Income for the three months ended in Jun. 2026 was €275 Mil. Luckin Coffee's Revenue for the three months ended in Jun. 2026 was €2,035 Mil. Therefore, Luckin Coffee's Operating Margin % for the quarter that ended in Jun. 2026 was 13.51%.

Luckin Coffee's 5-Year average Growth Rate for Operating Margin % was 0.00% per year.

Operating Income or EBIT 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 Jun. 2026 was 28.43%. Luckin Coffee's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jun. 2026 was 55.60%.


Luckin Coffee  (STU:LC0A) Operating Income Explanation

1. Operating Income or EBIT 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 Jun. 2026 is calculated as:

ROC % (Q: Jun. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Mar. 2026 ) + Invested Capital (Q: Jun. 2026 ))/ count )
=1099.5 * ( 1 - 30.28% )/( (2440.36 + 2951.944)/ 2 )
=766.5714/2696.152
=28.43 %

where

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))
=4002.435 - 775.861 - ( 1040.511 - max(0, 1174.229 - 1960.443+1040.511))
=2440.36

Invested Capital(Q: Jun. 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))
=4537.811 - 864.843 - ( 1297.99 - max(0, 1542.641 - 2263.665+1297.99))
=2951.944

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

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

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

ROC (Joel Greenblatt) %(Q: Jun. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Mar. 2026  Q: Jun. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=1093.464/( ( (1798.818 + max(122.398, 0)) + (1934.018 + max(78.321, 0)) )/ 2 )
=1093.464/( ( 1921.216 + 2012.339 )/ 2 )
=1093.464/1966.7775
=55.60 %

where Working Capital is:

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(103.046 + 491.064 + 325.822) - (775.861 + 21.673 + 0)
=122.398

Working Capital(Q: Jun. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(135.612 + 499.186 + 330.877) - (864.843 + 22.51 + 0.00099999999997635)
=78.321

When net working capital is negative, 0 is used.

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

3. Operating Income is also linked to Operating Margin %:

Luckin Coffee's Operating Margin % for the quarter that ended in Jun. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Jun. 2026 )/Revenue (Q: Jun. 2026 )
=274.875/2034.995
=13.51 %

* 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.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.


Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Luckin Coffee Operating Income Related Terms


Luckin Coffee Operating Income Historical Data

* Premium members only.

The historical data trend for Luckin Coffee's Operating Income 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 Operating Income Chart

Luckin Coffee Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only -22.48 201.65 399.00 458.96 627.34

Luckin Coffee Quarterly Data
Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26 Jun26
Operating Income 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 212.40 216.04 103.25 92.62 274.88
STU:LC0A
74GF Score
Luckin Coffee Inc STU:LC0A
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Luckin Coffee Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Jun. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €687 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 Operating Income →
What does a Operating Income of €687 Mil mean?
Luckin Coffee (STU:LC0A) has a Operating Income of €687 Mil as of Jun. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Luckin Coffee and its competitors.
Is Luckin Coffee's Operating Income too high?
Luckin Coffee's current Operating Income is €687 Mil. Overall, Luckin Coffee has a GF Score™ of 74/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Luckin Coffee's Operating Income compare to BROS and EAT?
Luckin Coffee's Operating Income of €687 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 Operating Income for a Restaurants company?
A good Operating Income depends on the Restaurants industry context. However, Operating Income 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 Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Luckin Coffee and its competitors. Luckin Coffee's current Operating Income is €687 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 (STU:LC0A) is currently considered Modestly Undervalued. The stock's GF Value™ is €43.94, compared to a current price of €31.00 — trading 29.4% below its estimated fair value. The current Operating Income is €687 Mil. Luckin Coffee's overall GF Score™ is 74/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Luckin Coffee (STU:LC0A), the current Operating Income is €687 Mil 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 (STU:LC0A) Overvalued in 2026?

Based on GuruFocus' analysis, Luckin Coffee stock appears to be undervalued. The current stock price of €31.00 is trading 29.4% below its estimated GF Value™ of €43.94. GuruFocus considers Luckin Coffee to be Modestly Undervalued.

Key valuation signals for STU:LC0A:

  • Operating Income: €687 Mil
  • GF Value™: €43.94 vs. price of €31.00 (29.4% below fair value)
  • GF Score™: 74/100 with 1 warning sign

No single metric tells the full story. See the STU:LC0A stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Luckin Coffee Business Description

Other Exchanges LKNCY:USA0A6U:UK
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.
74GF Score

Get the complete analysis for STU:LC0A

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

€31.00
Price
€43.94
GF Value