Luckin Coffee and Starbucks Entering a Global Coffee Battle – New Deal Highlights Ambitions
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 05 2026
0mins
Should l Buy SBUX?
Source: stocktwits
Expansion of Luckin Coffee: Luckin Coffee has opened its first flagship store in Shenzhen, China, as part of its global expansion strategy, which includes acquiring Blue Bottle Coffee, a brand with 100 cafes across the U.S. and Asia.
Starbucks Struggles: Starbucks is facing challenges with declining sales and plans to close 1% of its stores in North America, while Luckin Coffee has overtaken it in the Chinese market, appealing to younger consumers with trendy offerings.
Market Performance: Luckin Coffee's stock has gained nearly 21% over the past year, contrasting with Starbucks, which has seen an 8% decline in the same period, indicating a shift in consumer preference.
Global Presence: The acquisition of Blue Bottle Coffee enhances Luckin's reach into high-demand markets such as Japan, Hong Kong, and South Korea, further solidifying its global presence and competitive edge.
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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: 105.330
Low
59.00
Averages
96.12
High
115.00
Current: 105.330
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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- Expansion Plans: Dutch Bros aims to open at least 181 new locations in 2026, having ended last year with 1,136 stores, highlighting its expansion potential in the untapped Northeast and Midwest markets, which could further enhance its market share.
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See More
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- Sales Growth: Dutch Bros achieved a 7.7% increase in same-store sales for 2025, with 5.4 percentage points driven by higher traffic, demonstrating strong consumer demand for its beverages, and management projects a 3%-5% growth for 2026.
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See More
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- Financial Recovery: The company reported a 9% year-on-year revenue increase to $9.5 billion in Q2, with adjusted earnings rising 22% to $0.50 per share and operating margins expanding by 180 basis points to 8.7%, demonstrating positive progress in restoring core business momentum.
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