Luckin Coffee (ADR)

Luckin Coffee is outperforming the market, driven by scale, tech innovation, and a digital-first retail model that boosts efficiency and customer engagement. Despite price wars, Luckin's long-term supply contracts and massive roasting capacity allow it to maintain aggressive pricing while expanding margins and market share. The company is reshaping Chinese coffee culture, leveraging delivery, digital engagement, and gamified promotions to drive rapid growth in lower-tier cities.» Mehr auf seekingalpha.com

The Chinese coffeehouse is hoping it can create buzz for its brand in the Big Apple.» Mehr auf barrons.com

Starbucks Corp. (NASDAQ: SBUX) sales in China are essential to its future. In the most recent quarter, the U.S. and China together had 61% of the company’s stores worldwide. At the end of the quarter, it had 17,122 stores in the United States and 7,758 in China. However, China has become a problem market. The primary reason is local rival Luckin Coffee, which has 22,000 stores there. The competition for Starbucks is overwhelming. 24/7 Wall St. Key Points: Luckin Coffee, Starbucks Corp.’s (NASDAQ: SBUX) rival in China, has just opened its first U.S. store. Starbucks stock has lagged, and investors are nervous about its prospects. Take this quiz to see if you’re on track to retire. (sponsored) Luckin has just opened its first U.S. store in New York. On its Instagram page, it wrote, “NYC, it’s happening. Our doors are open and Luckin Coffee is taking over the city.” The last thing Starbucks needs is more U.S. competition. It is already up against McDonald’s, Dunkin’ Donuts, and thousands of local coffee shops. Luckin is well funded. It had $1.3 billion in revenue last year. That was up 36% from 2023. It has recently moved beyond China and opened stores in Singapore and Hong Kong. Investors are already nervous about Starbucks’ prospects. Its revenue rose only 1% to $6.5 billion in the first quarter. Per-share earnings fell by 50% to $0.30. CEO Brian Niccol has thrown a number of things at the problem, from redesigned stores to new barista dress codes to a smaller menu. Starbucks stock is down 6.6% in the past three months, while the S&P 500 is up 10.6% over the same period. The U.S. company needs to show that the Luckin move into the U.S. is just a blip on the radar. The Six Worst Coffee Brands to Avoid The post China Coffee Giant Luckin Challenges Starbucks in the US appeared first on 24/7 Wall St..» Mehr auf 247wallst.com