Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Nasdaq  >  Luckin Coffee Inc.    LK

LUCKIN COFFEE INC.

(LK)
  Report  
SummaryQuotesChartsNewsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsAnalyst Recommendations

Luckin Coffee's not-so-secret weapon in battle with Starbucks: Tea

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/13/2019 | 10:49am EST
A screen displays the logo for Luckin Coffee during the company's IPO at the Nasdaq Market site in New York

Luckin Coffee Inc's new teas pulled in more customers to its rapidly expanding network of stores in China in the third quarter, helping the Starbucks rival post a smaller-than-expected loss and sending its shares up nearly 14%.

Luckin, which also forecast fourth-quarter revenue above estimates, has benefited from a growing love for caffeine in China's major cities such as Beijing and Shanghai, but tea still dominates smaller towns.

The company in July introduced fruit-flavored teas and tea macchiatos at its outlets, and teas constituted 20% of freshly brewed drinks in the third quarter.

Luckin attracted 8 million new customers during the period, "partly driven by the success of Luckin Tea products", Chief Financial Officer Reinout Schakel said on a conference call.

Looking to build on the momentum, the company opened its first independently branded "Luckin Tea" store in October.

Luckin's results follow a strong show in China by Starbucks Corp, largely credited with making a nation of tea-lovers embrace coffee. [nL3N27F5AN]

Since its launch in 2017, Luckin has not shied away from aggressively opening stores as part of its goal of overtaking Starbucks in China by the end of the year.

The company opened about 700 stores in the third quarter, taking its total in China to 3,680, while Seattle-based Starbucks took two decades to reach 4,125.

The expansion nearly tripled Luckin's operating expenses to 2.13 billion yuan in the quarter, but that declined as a percentage of net revenue.

Luckin said a reduction in store pre-opening costs, rent payments and operating expenses due to its app-focused model helped cut relative costs.

"It is a good sign that expenses are falling. But the question will be how much farther they can push them down and if they can make individual stores more profitable," said Ben Cavender, managing director at China Market Research Group in Shanghai.

Excluding certain items, Luckin reported a loss of 32 cents per share, smaller than the 38 cents analysts had expected.

Total net revenue rose over six-fold to 1.54 billion yuan.

Luckin forecast fourth-quarter net revenue of 2.1 billion yuan ($300 million) to 2.2 billion yuan ($314 million), while analysts were expecting $289.08 million, according to three analysts polled by Refinitiv. [nGNX4FX0z6]

Including the session's gains, Luckin shares have gained nearly 27% over their initial public offering price in May. The IPO lockup period expires on Wednesday.

($1 = 6.9941 Chinese yuan renminbi)

By Uday Sampath Kumar

Stocks mentioned in the article
ChangeLast1st jan.
LUCKIN COFFEE INC. 2.26% 30.36 Delayed Quote.0.00%
STARBUCKS CORPORATION -0.05% 86.28 Delayed Quote.33.98%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on LUCKIN COFFEE INC.
11/28ROBERT LOUIS-DREYFUS : A turbulent decade for grain trader Louis Dreyfus and its..
RE
11/14Starbucks Rival Posts Higher Revenue Amid Bid to Take On U.S. Chain in China ..
DJ
11/13LUCKIN COFFEE : Sales Rise Sixfold
DJ
11/13LUCKIN COFFEE'S NOT-SO-SECRET WEAPON : Tea
RE
11/13LUCKIN COFFEE'S NOT-SO-SECRET WEAPON : Tea
RE
11/13Luckin Coffee Inc. Announces Unaudited Third Quarter 2019 Financial Results
GL
10/31Starbucks Gets Lift From Its Cold Brews -- WSJ
DJ
10/17Luckin Coffee to Announce Third Quarter 2019 Financial Results on November 13..
GL
09/26LUCKIN COFFEE : squeezing into Chinese juice market
AQ
09/26Louis Dreyfus Company and Luckin Coffee to Launch Juice Joint Venture in Chin..
GL
More news
Financials (USD)
Sales 2019 730 M
EBIT 2019 -325 M
Net income 2019 -322 M
Finance 2019 656 M
Yield 2019 -
P/E ratio 2019 -19,8x
P/E ratio 2020 -90,6x
EV / Sales2019 9,10x
EV / Sales2020 3,53x
Capitalization 7 296 M
Chart LUCKIN COFFEE INC.
Duration : Period :
Luckin Coffee Inc. Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends LUCKIN COFFEE INC.
Short TermMid-TermLong Term
TrendsBullishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 10
Average target price 28,76  $
Last Close Price 30,36  $
Spread / Highest target 25,2%
Spread / Average Target -5,28%
Spread / Lowest Target -22,8%
EPS Revisions
Managers
NameTitle
Zhi Ya Qian Chief Executive Officer & Director
Charles Zhengyao LU Chairman
Jian Liu Chief Operating Officer & Director
Reinout Hendrik Schakel Chief Financial & Strategy Officer
Jin Yi Guo Director & Senior Vice President
Sector and Competitors
1st jan.Capitalization (M$)
LUCKIN COFFEE INC.0.00%7 296
SYSCO CORPORATION32.67%42 231
SEVEN & I HOLDINGS CO., LTD.-14.71%33 111
WOOLWORTHS GROUP LIMITED30.39%32 877
TESCO PLC27.88%29 660
AHOLD DELHAIZE N.V.6.46%28 782