# China coffee market

Luckin’s Delivery Surge Fades as Rapid Expansion Squeezes Q4 Profits

Luckin Coffee posted strong revenue growth in 2025 but saw fourth-quarter net profit fall nearly 40% as the delivery subsidy-driven boom faded. Rapid store expansion and rising material, rent and delivery costs exposed margin pressure, while intensifying competition and a pullback in platform subsidies pose risks to 2026 growth.