Luckin Coffee's Global Expansion and Market Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy SBUX?
Source: stocktwits
- Market Share Growth: Luckin Coffee has reached 30,000 stores in China, becoming the largest coffee chain and surpassing Starbucks, reflecting its strong performance in the rapidly growing coffee market.
- Profitability Improvement: Luckin has been profitable for the last six quarters, with expected net profit growth of at least 20% annually, while Starbucks has seen a slowdown in profit growth, showcasing Luckin's competitive edge.
- Retail Sentiment Shift: According to Stocktwits data, retail sentiment on Luckin surged from 'bullish' to 'extremely bullish', while Starbucks is in 'bearish' territory, indicating a significant increase in investor confidence in Luckin.
- Overseas Market Expansion: Luckin is rapidly expanding into overseas markets such as Singapore, Malaysia, and the United States to capitalize on the growing demand for its coffee offerings, further solidifying its market position.
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Analyst Views on SBUX
Wall Street analysts forecast SBUX stock price to fall
21 Analyst Rating
12 Buy
7 Hold
2 Sell
Moderate Buy
Current: 96.760
Low
59.00
Averages
96.12
High
115.00
Current: 96.760
Low
59.00
Averages
96.12
High
115.00
About SBUX
Starbucks Corporations is a roaster, marketer, and retailer of specialty coffee globally. Its North America segment includes the United States and Canada. Its International segment includes China, Japan, Asia Pacific, Europe, Middle East and Africa, Latin America, and the Caribbean. Its North America and International segments include both Company-operated and licensed stores. The Channel Development segment includes roasted whole bean and ground coffees, Starbucks-branded single-serve products, a variety of ready-to-drink beverages, such as Frappuccino and Starbucks Doubleshot, foodservice products, and other branded products sold outside the Company-operated and licensed stores. A large portion of its Channel Development business operates under a licensed model of the Global Coffee Alliance with Nestle, while its global ready-to-drink businesses operate under collaborative relationships with PepsiCo, Inc., Tingyi-Ashi Beverages Holding Co., Ltd., Arla Foods amba, Nestle, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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