LKNCY Stock Recent News

China's Luckin Coffee has overtaken Starbucks as the country's top coffee retailer. That's a remarkable rebound from less than four years ago, when the company filed for bankruptcy.

China's coffee market is booming, and it is now likely the world's biggest. After doubling its store count in 2023, Luckin holds a market-leading position in China, with its nearest competitors, Starbucks and Cotti Coffee, struggling to catch up. Luckin's Gross Margin of 55% meant that despite the high SG&A costs associated with rapid expansion, it remained profitable.

Luckin Coffee stock price was little changed in the pre-market session after the company published its first-quarter results. It was trading at $21.13 in New York, where it ended the day on Monday.

Starbucks (NASDAQ: SBUX) and Luckin Coffee stock prices have come under intense pressure this year amid rising robusta coffee prices and demand. SBUX shares crashed to a low of $88.50 on Thursday, its lowest level since October 2023.

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BEIJING, Feb. 16, 2024 (GLOBE NEWSWIRE) -- Luckin Coffee Inc. (“Luckin Coffee” or the “Company”) (OTC: LKNCY) will release its fourth quarter and full year 2023 financial results before the U.S. market open on Friday, February 23, 2024.

Investors could find themselves chasing a caffeine high going into year's end as the tech sector's strength looks to spread to other parts of the market. Undoubtedly, some coffee stocks seem overdue for a jolt as consumers look to get through the macro pressures that have hurt their purchasing power.

From Amazon.com and Google Shopping to Become and Shopzilla, there are a lot of comparison shopping websites and apps around these days. They are helping consumers save money and make informed purchase decisions.

Luckin Coffee's share price has nearly doubled since 2022, reflecting investor confidence in its turnaround post-accounting fraud. A competitive pricing strategy appears to help increase market share during the economic downturn in China. I project a +30% market share in FY 2024, with a 1-year price target of $34.72. I see moderate competition risk, though still overshadowed by a 65% upside potential, in my view.