Two of the world’s largest coffee companies, Keurig Dr Pepper and Luckin Coffee, reported quarterly financial results today, Nov. 3, revealing strong overall growth alongside noticeable challenges in key parts of their coffee businesses.
U.S.-based Keurig Dr Pepper reported rising sales, boosted by its acquisition of JDE Peet’s, completed in April, while noting pressure from price-sensitive coffee consumers.
China-based Luckin Coffee continued its rapid retail expansion and reported higher profits, despite declining sales at established stores.
Keurig Dr Pepper
Keurig Dr Pepper reported third-quarter sales of $7.34 billion, up 70.6% from a year earlier, with most of the increase coming from the JDE Peet’s acquisition. The newly acquired business contributed approximately $2.65 billion in quarterly sales.
KDP’s existing U.S. coffee business, which includes Keurig brewing systems and K-Cup pods, reported a more modest 2.7% sales increase to approximately $1.02 billion.
During the company’s quarterly earnings call, CEO Tim Cofer said consumers, particularly lower- and middle-income households, have become more price-sensitive, with some shifting from single-serve coffee to less expensive formats, including ground coffee and instant coffee. “In addition, we did see private label penetration increasing both at total coffee category level and in the single-serve segment,” Cofer said during the call.
Adjusted operating profit in the U.S. coffee business increased 11.4% to $353 million, although the company attributed part of that growth to tariff refunds. KDP reported receiving $99 million in tariff refunds companywide during the quarter.
The results come as KDP prepares to separate its coffee and soft drink businesses in early 2027. The planned coffee company, Global Coffee Co., will combine the Keurig brewing platform and brands such as Green Mountain Coffee Roasters with JDE Peet’s portfolio, including Peet’s Coffee, Stumptown Coffee Roasters, Intelligentsia Coffee, L’OR and numerous international brands.
Luckin Coffee
China’s Luckin Coffee reported third-quarter revenue of approximately US$2.67 billion, up 17% from a year earlier. Net income increased 45.4% to approximately $277 million as the company continued expanding its enormous retail network.
Luckin’s network grew by a net 2,599 stores during the quarter, bringing its worldwide total to 38,909 locations, up from 29,214 a year earlier. Most of the new stores were in China, although the company also added 40 locations in Malaysia, 14 in Singapore and two in the United States.
Despite the overall growth, sales at established company-operated stores declined 11.1% compared to the same quarter last year. It marked the third consecutive quarter of negative same-store sales growth, following declines of 0.1% and 5.3% in the first two quarters of 2026. Luckin attributed the latest decline primarily to unusually high sales during the prior-year period.
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