The coffee chain on Tuesday posted first quarter earnings showing a jump of almost 90% in revenue and its first ever profit, despite challenging Covid lockdowns. It also ended the period with 6,580 stores in mainland China. That’s more than Starbucks (SBUX), which has just over 5,650 outlets in China.
Luckin now calls itself the country’s largest coffee chain. Some of its stores are self-operated, while others are run by partners. Starbucks’ outlets in China are entirely company-owned.

The Chinese company’s latest earnings offer a look into its recovery since it admitted in 2020 to making up some of its sales numbers, leading to its ejection from the Nasdaq.

In an interview Wednesday, CEO Jinyi Guo acknowledged that many analysts may still be skeptical of Luckin’s finances.

Since 2020, “we have taken a lot of measures to clean up our own house,” he said, noting that it had brought in external lawyers to review its operations and reorganized its teams. Guo, a senior vice president of…

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