Luckin Coffee (LKNCY, Financial) saw its stock price increase by over 6.8%, reaching $25.09. The rise is attributed to the company's strategy to re-enter the U.S. market by offering low-cost beverages to challenge competitors like Starbucks. Luckin Coffee previously faced delisting from the Nasdaq due to a financial fraud scandal, which also resulted in a $180 million fine.
According to sources, Luckin Coffee is preparing to enter the U.S. market as early as next year. The company is focusing on establishing its own supply chain and addressing technical issues specific to the U.S. market. In 2023, Luckin Coffee’s revenue in China reached 24.9 billion yuan ($3.5 billion), surpassing Starbucks for the first time.
Currently, Luckin Coffee has a market capitalization of approximately $6.5 billion on the U.S. over-the-counter market.
