Categories AlphaGraphs, Analysis, Earnings, Retail

A reality check on Luckin Coffee’s (LK) ambitious growth target

Luckin Coffee (NASDAQ: LK) is one of the few Chinese startups that made successful Wall Street debut this year. While several companies failed to sustain the momentum after the IPO, the coffee chain expanded its market value consistently. The stock gained sharply since then and is currently trading at an all-time high.

The company, which is often referred to as the Starbucks (SBUX) of China, has been regularly adding new units to its store network even as sales grew steadily. The scale of growth can be gauged by the sharp increase in the number of active customers, reflecting the steady demand for freshly brewed coffee items.

Luckin Coffee delivers better-than-expected Q3 results

The positive trend complements the management’s goal of becoming the largest coffee chain in China by year-end. The fact that Luckin remained largely unaffected by the tariff war, while several Chinese companies were hit by trade-related uncertainties, added to the upbeat sentiment surrounding the stock.

What Next?

As the company enters 2020, the question most investors will be asking is whether the current excitement will be sustained. The answer lies in a statement issued by CEO Zhiya Qian earlier – that the Chinese coffee market is highly underpenetrated. Luckin owes its high growth rate to the relatively low prices and promotional offers. Since the majority of the stores have been open for less than one year, it is too early to judge the long-term trend.

Looking High

With multiple factors working in its favor, Luckin will be giving arch-rival Starbucks a run for its money. Starbucks, the American beverage giant that introduced the coffee culture in China, is already losing market share to Luckin. However, it would be a tricky situation when it comes to choosing between the two companies from an investment perspective. Despite solid sales and a growing store base, Luckin is yet to become profitable, while Starbucks is a profit-making company with strong fundamentals.

Also see: Luckin Coffee Q3 2019 Earnings Conference

Recently, Luckin impressed the market by posting stronger-than-expected results for its most recent quarter. Net loss narrowed to $0.32 per share on revenues of $215.7 million, which was up 40% from last year.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Comments

  1. Pingback: Arie Baisch
  2. Pingback: Reba Fleurantin
  3. Pingback: valentines gift
  4. Pingback: organic feet
  5. Pingback: help allergies
  6. Pingback: Click Here
  7. Pingback: Click Here
  8. Pingback: Click Here
  9. Pingback: Click Here
  10. Pingback: Click Here
  11. Pingback: Click Here
  12. Pingback: Click Here
  13. Pingback: Click Here
  14. Pingback: Click Here
  15. Pingback: Click Here
  16. Pingback: Click Here
  17. Pingback: Click Here
  18. Pingback: Click Here
  19. Pingback: Click Here
  20. Pingback: Click Here
  21. Pingback: Click Here
  22. Pingback: Click Here
  23. Pingback: Click Here
  24. Pingback: Click Here
  25. Pingback: Click Here
  26. Pingback: Click Here
  27. Pingback: Click Here
  28. Pingback: Click Here
  29. Pingback: Click Here
  30. Pingback: Click Here
  31. Pingback: Click Here
  32. Pingback: Click Here
  33. Pingback: Click Here
  34. Pingback: Click Here
  35. Pingback: Click Here
  36. Pingback: Click Here
  37. Pingback: Click Here
  38. Pingback: Click Here
  39. Pingback: Click Here
  40. Pingback: Click Here
  41. Pingback: Click Here
  42. Pingback: Click Here
  43. Pingback: Click Here
  44. Pingback: Click Here
  45. Pingback: Click Here
  46. Pingback: Click Here
  47. Pingback: Click Here
  48. Pingback: Click Here
  49. Pingback: Click Here
  50. Pingback: Click Here
  51. Pingback: Click Here
  52. Pingback: Click Here
  53. Pingback: Click Here
  54. Pingback: Click Here
  55. Pingback: Click Here
  56. Pingback: Referral Code
  57. Pingback: Click Here
  58. Pingback: Click Here
  59. Pingback: Click Here
  60. Pingback: Click Here
  61. Pingback: Click Here
  62. Pingback: Click Here
  63. Pingback: Click Here
  64. Pingback: Click Here
  65. Pingback: Click Here
  66. Pingback: Click Here
  67. Pingback: gym
  68. Pingback: Google reviews
  69. Pingback: 2023 Books
  70. Pingback: obituary
  71. Pingback: online memorial
  72. Pingback: obituary
  73. Pingback: Chirurgie Tunisie
  74. Pingback: MBA tuition fees
  75. Pingback: Course Load
  76. Pingback: Dental Seminars
  77. Pingback: Technical Writer
  78. Pingback: MoU's
  79. Pingback: fue
  80. Pingback: Msc in dental
  81. Pingback: التحصينات
  82. Pingback: virus C research
  83. Pingback: led luci camera
  84. Pingback: metanail serum pro
  85. Pingback: Fiverr Earn
  86. Pingback: Fiverr Earn
  87. Pingback: Fiverr Earn
  88. Pingback: Fiverr Earn
  89. Pingback: Fiverr Earn
  90. Pingback: fiverrearn.com
  91. Pingback: TMS System
  92. Pingback: flatbed broker
  93. Pingback: french bulldog
  94. Pingback: fiverrearn.com
  95. Pingback: springer doodle
  96. Pingback: bitcoin
  97. Pingback: future university
  98. Pingback: future university
  99. Pingback: what is seo
  100. Pingback: Fiverr
  101. Pingback: future university
  102. Pingback: french bulldog
  103. Pingback: FUE
  104. Pingback: FUE
  105. Pingback: Office relocation
  106. Pingback: FiverrEarn
  107. Pingback: FiverrEarn
  108. Pingback: FiverrEarn
  109. Pingback: FiverrEarn
  110. Pingback: FiverrEarn
  111. Pingback: FiverrEarn
  112. Pingback: pupuk anorganik
  113. Pingback: partners
  114. Pingback: neurozoom reviews
  115. Pingback: Predictions
  116. Pingback: FiverrEarn
  117. Pingback: FiverrEarn
  118. Pingback: FiverrEarn
  119. Pingback: FiverrEarn
  120. Pingback: FiverrEarn
  121. Pingback: FiverrEarn
  122. Pingback: FiverrEarn
  123. Pingback: FiverrEarn
  124. Pingback: FiverrEarn
  125. Pingback: FiverrEarn
  126. Pingback: Oil
  127. Pingback: website builder
  128. Pingback: web design
  129. Pingback: Slot Thailand
  130. Pingback: FiverrEarn
  131. Pingback: FiverrEarn
  132. Pingback: cheap sex cams
  133. Pingback: french bulldog buy
  134. Pingback: live sex cams
  135. Pingback: live sex cams
  136. Pingback: rare breed-trigger
  137. Pingback: 늑대닷컴
  138. Pingback: Slot 3D
  139. Pingback: nang sydney
  140. Pingback: allgame
  141. Pingback: 918kiss
  142. Pingback: หวย24
  143. Pingback: Korean Skincare
  144. Pingback: pg slot
  145. Pingback: carte uno reverse
  146. Pingback: cybersécurité
  147. Pingback: menang slot
  148. Pingback: megagame
  149. Pingback: 7mm-08 ammo
  150. Pingback: weight loss
  151. Pingback: itsMasum.Com
  152. Pingback: Nangs delivery
  153. Pingback: chauffe eau Tours

Comments are closed.

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top