Luckin CoffeeLTS:0A6U 83 ROE % is 12.83% as of Mar. 2026, which is 31% below its 10-year median of 18.61. 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. Among 344 Restaurants companies, Luckin Coffee ranks better than 83.43% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Luckin Coffee's annualized net income for the quarter that ended in Mar. 2026 was $294 Mil. Luckin Coffee's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was $2,290 Mil. Therefore, Luckin Coffee's annualized ROE % for the quarter that ended in Mar. 2026 was 12.83%.
The historical rank and industry rank for Luckin Coffee's ROE % or its related term are showing as below:
LTS:0A6U'
s ROE % Range Over the Past 10 Years
Min: -204.02 Med: 18.61 Max: 42.74
Current: 24.41
During the past 9 years, Luckin Coffee's highest ROE % was 42.74%. The lowest was -204.02%. And the median was 18.61%.
LTS:0A6U's ROE % is ranked better than 83.43% of 344
companies
in the Restaurants industry
Industry Median: 6.45
vs LTS:0A6U: 24.41
Luckin Coffee (LTS:0A6U) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Luckin Coffee ROE % Related Terms
Luckin Coffee ROE % Historical Data
* Premium members only.
The historical data trend for Luckin Coffee's ROE % 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.
For the Restaurants subindustry, Luckin Coffee's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Luckin Coffee's ROE % distribution charts can be found below:
* The bar in red indicates where Luckin Coffee's ROE % 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Luckin Coffee (LTS:0A6U) has a ROE % of 12.83% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Luckin Coffee and its competitors. This is 31% below median its historical median of 18.61. According to the industry distribution chart, Luckin Coffee ranks #57 out of 344 companies in the Restaurants industry, placing it in the top 16.6%.
Is Luckin Coffee's ROE % too high?
Luckin Coffee's current ROE % of 12.83% is 31% below median its 10-year median of 18.61. The Restaurants industry median ROE % is 6.45. Luckin Coffee's value of 12.83% is 98.9% above this industry median. Based on the distribution chart, Luckin Coffee ranks #57 out of 344 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 83/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Luckin Coffee's ROE % compare to EAT and CAVA?
According to the Restaurants industry distribution chart, Luckin Coffee ranks #57 out of 344 companies for ROE %. This places Luckin Coffee in the top 17% of its industry — outperforming the majority of peers. The industry median ROE % is 6.45. Luckin Coffee's value of 12.83% is 98.9% above this benchmark. While the company's 10-year median is 18.61 vs. the industry median of 6.45, 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 ROE % for a Restaurants company?
The median ROE % among Restaurants companies is 6.45, based on 344 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Luckin Coffee's current ROE % of 12.83% is 98.9% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Luckin Coffee and its competitors. For the Restaurants industry, the median ROE % is 6.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Luckin Coffee's current ROE % is 12.83%, which is 31% below median its own 10-year median of 18.61. 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 ROE % is 12.83%, which is 31% below median its 10-year median of 18.61 and 98.9% above the Restaurants industry median of 6.45. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For Luckin Coffee (LTS:0A6U), the current ROE % is 12.83% 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:
ROE %: 12.83% (31% below median its 10-year median of 18.61)
GF Value™: $20.29 vs. price of $12.54 (38.2% below fair value)
Industry Position: 98.9% above the Restaurants median (#57 of 344)
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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