Starbucks' China rival Luckin surges in market debut

  • 📰 Reuters
  • ⏱ Reading Time:
  • 41 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 20%
  • Publisher: 97%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Shares of Luckin Coffee Inc surged as much as 52.7% in their market debut on Fri...

- Shares of Luckin Coffee Inc surged as much as 52.7% in their market debut on Friday, indicating strong investor demand for the self-declared challenger to Starbucks Corp in China.

“For us, brand is very, very important. If you’re a listed company, particularly in the U.S., that will elevate your brand even further than what it is today. So helps us with branding,” Chief Financial Officer Reinout Schakel said in an interview at the Nasdaq. Luckin’s expansion is in stark contrast to Starbucks, which opened its first China store in 1999 and has spent two decades reaching its current store count.

Luckin’s innovation on how consumers enjoy a cup of coffee sets it apart, said Zephirin Group analyst Lenny Zephirin in a note. “We believe this will continue to support above-industry growth in the coming years.” However, Luckin’s expansion comes at the cost of an aggressive cash burn. It relies heavily on cheap delivery and big discounts as a key strategy to attract customers.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Luckin makes a good cup of coffee.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in NG

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stocks making the biggest moves midday: Cray, Pinterest, Luckin Coffee & moreThese are the stocks posting the largest moves midday. Just saw one of you guys reporting on the sale of Tesla stock. The story is at least three days old and T. Rowe sold the shares months ago.
Source: CNBC - 🏆 12. / 72 Read more »