The story of Luckin Coffee is nothing short of fascinating. In just a few years, the company has grown from a small coffee chain to a global player, expanding rapidly and even competing with giants like Starbucks. But is it a good investment today? Let’s break it down.

As of June 2025, Luckin Coffee operates 26,206 stores worldwide, up from 18,000 stores just a year ago. In the last quarter alone, the company opened 2,109 new stores, with 2,085 in China and Hong Kong and even two new stores in the US directly competing with Starbucks.

Of these 26,000+ stores, around 16,000 are self-operated, highlighting Luckin’s ambition to maintain quality control while scaling aggressively.

The Guardian recently asked whether this rapid expansion signals the end of Starbucks’ dominance. While Starbucks remains significantly larger — generating $36.2 billion in revenue compared with Luckin’s $4.7 billion last year — the competition is heating up.

When evaluating any company, it’s important to look beyond revenue. Revenue growth can be enticing, but as we often say: “Revenue is vanity; profit is sanity.”

Luckin’s profit and loss statement shows that while revenue is trending upwards, profitability has been inconsistent. The company only achieved profitability in the last four years, and prior periods reflect losses.

This highlights the reality of investing in high-growth companies — impressive revenue growth does not always equate to sustainable profits.

Luckin Coffee represents a high-risk, high-growth opportunity. Here’s what investors should consider:

• Growth potential: The company’s aggressive expansion strategy indicates strong long-term ambition.
• Profitability: Only recent years show profits; sustaining profitability is a key challenge.
• Regulatory risk: Delisting and moving to OTC (Pink Sheets) increases trading complexity and risk.

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