In its third quarter 2024 financial results, Chinese coffee chain Luckin Coffee has reported a 41.4 per cent increase in net revenues from the same time last year, as it evaluates expansion opportunities in the United States (US).
The quarterly results, released on 30 October 2024, revealed a revenue jump from RMB7200 million (US$1012 million) in October 2023 to RMB10,180.8 million (US$1452.1 million) in 2024.
During the third quarter, Luckin also reported 1382 net store openings, representing 6.9 per cent quarter-over-quarter store unit growth. This takes the chain’s total store count to 21,343 including 13,936 self-operated stores and 7407 partnership stores.
The company also reported 79.8 million transacting customers over the quarter, representing a 36.5 per cent increase from 58.5 million in the same quarter of 2023.
Revenues from self-operated stores in the third quarter were RMB7,501.4 million (US$1,069.9 million), representing an increase of 45.9 per cent from RMB5,141.0 million in the same quarter of 2023. Meanwhile, same-store sales growth for self-operated stores in the third quarter was negative 13.1 per cent, compared with positive 19.9 per cent in the same quarter of 2023.
Revenues from partnership stores in the third quarter were RMB2341.3 million (US$333.9 million), representing an increase of 27.2 per cent from RMB1840.8 million in the same quarter of 2023.
In a statement, Luckin said it recognises the importance of the international market and is actively pursuing global expansion.
“The international market encompasses diverse regions, each requiring long-term investment before realising substantial financial returns,” the company said.
“We have strategically chosen Singapore as the launch point for our international expansion, given its status as a key hub in Southeast Asia. Our first store in Singapore opened in 2023, and in the third quarter, we added eight new stores, bringing the total to 45 self-operated stores.”
Luckin is also actively evaluating opportunities in the US and other markets.
“Given the maturity, saturation, and competitiveness of the US coffee market, we intend to approach our expansion strategy there with careful consideration and a disciplined execution plan,” the company said.
Dr Jinyi Guo, Chairman and CEO of Luckin, says despite the many coffee options available in China, the chain remains a preferred choice for customers, as reflected in its record average monthly transaction user count and the addition of 1382 net new stores.
“In line with our commitment to invest in a high-quality supply chain and boost efficiency, we also broke ground in August on our new state-of-the-art Innovation and Production Center in Qingdao, a strategically important economic hub in China. Looking forward, we are focused on continuing to expand our market share by offering innovative, high-quality products, enhancing brand recognition, and expanding our footprint,” he says.
