Mixue Group's stock plummeted 5.12% during intraday trading on Wednesday, extending recent declines as investor concerns mount over the company's future prospects.

The decline comes amid intensifying market worries about Mixue Group's growth outlook, with the stock having fallen approximately 54% from its peak. Key concerns include a decline in core business gross margin from 31.2% to 29.9%, squeezed by rising raw material costs — particularly lemon procurement prices which have surged over 60% — and a strategic shift toward lower-margin product categories.

Additionally, with domestic store count approaching 60,000, physical expansion is nearing saturation levels. Management has indicated that pullbacks in delivery subsidies are slowing store-level revenue growth, with profitability expected to face continued pressure in the coming periods.