GIC-BACKED LUCKIN COFFEE TO DEBUT ON NASDAQ THIS WEEK
In contrast to the retail model operated by Starbucks, Luckin specializes in digital orders and on-demand deliveries. In the first quarter of 2019, Luckin had a loss of $85 million with total sales of $71 million. For year 2018, Luckin had $125 million in revenue with a $475 million loss. Luckin has quickly scaled to reach 2,370 locations in less than two years with plans to add a further 2,500 this year; which will then see it overtake Starbucks (which has 3,600 stores across 150 Chinese cities).
Luckin coffee seems to some analysts as a coffee network company, a hybrid of Starbucks, food-delivery giant Meituan Dianping and rail-hailing pioneer Uber Technology from the sources which I have read. Looking at the financial position of the company, I would think twice where it comes to investing for the long term in this counter. STABLE STI CORE, MULTI-BAGGED BY SELECTIVE INTERNATIONAL PICKS! Join the emailing list to receive regular Financial and Singapore stocks newsletters too! Like" me on Singapore Stocks Investing Facebook page to receive all posts on your Facebook as well as read more articles. Follow me on Twitter too.
