Luckin Coffee returns to profit in Q1 2025 with 41% revenue surge
Strong customer growth, same-store sales recovery, and rapid store openings drive Luckin Coffee’s strong quarterly performance.
CHINA – Luckin Coffee Inc. has reported a 41.2% year-on-year revenue increase to 8.87 billion yuan (US$1.22 billion) in the first quarter of 2025, marking a return to profitability and same-store sales growth after a year of decline in 2024.
The Chinese café chain saw its average monthly transacting customers rise 24% year-on-year to 74.3 million during the quarter.
Store-level operating profit surged by 244.8% to US$152.3 million, reflecting improved operational efficiency and customer demand.
Luckin Coffee opened a net 1,757 new stores in the quarter, bringing its total to 24,097 by the end of March, a 7.9% increase from the end of 2024.
Of the total, 15,598 stores were self-operated, while 8,499 were franchised. Self-operated store revenue rose 41.5% year-on-year to 6.48 billion yuan (US$891.4M), contributing around 75% of the total revenue.
Same-store sales for self-operated outlets rose 8.1% in the first quarter, reversing four consecutive quarters of contraction. This includes a notable turnaround from a 20.3% decline recorded in the same period last year.
Co-Founder and CEO Dr. Jinyi Guo credited the positive performance to growing consumer interest in China’s coffee market and the company’s continued focus on affordability and product quality.
He noted that Luckin Coffee would maintain its strategic emphasis on market share growth through competitive pricing and high-quality offerings.
The company also announced a leadership change, appointing Hui Li as Chairman of the Board. Dr. Guo will continue as CEO. The transition is aimed at strengthening strategic alignment and governance to support long-term growth.
Looking ahead, Luckin Coffee plans to continue expanding its presence and sustaining momentum by focusing on customer-centric strategies and tapping into China’s fast-growing coffee consumption.
Sign up HERE to receive our email newsletters with the latest news and insights from Africa and around the world, and follow us on our WhatsApp channel for updates.
