Luckin Coffee Stages Remarkable Comeback, Overtakes Starbucks In China
Portfolio Pulse from Benzinga Neuro
Luckin Coffee (OTC:LKNCY) has made a remarkable recovery after a major accounting scandal in 2020, surpassing Starbucks (NASDAQ:SBUX) as China's largest coffee retailer. The company has expanded to over 18,500 stores and ventured into smaller cities, focusing on automation and local tastes. Despite the scandal, Luckin's shares have risen significantly from their lows.
June 07, 2024 | 3:01 am
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NEUTRAL IMPACT
Starbucks has been overtaken by Luckin Coffee as China's largest coffee retailer. Despite this, Starbucks shares ended the regular session 0.4% higher.
While Starbucks has been overtaken by Luckin Coffee in China, its shares still closed higher, indicating that investors may not be overly concerned about the competition in the short term.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Luckin Coffee has made a significant recovery, expanding to over 18,500 stores and surpassing Starbucks as China's largest coffee retailer. The company's shares have risen more than 12 times from their lows.
Luckin Coffee's expansion and recovery from the accounting scandal have significantly boosted investor confidence. The company's focus on automation and local tastes has driven growth, making it a strong competitor to Starbucks in China.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100