Shares of Luckin Coffee jumped 20percent in its first day of trading in the Nasdaq stock exchange.
After opening at $17. 00, stocks of this Chinese Starbucks competitor increased as high as $25. 96, or more than 50%, before settling back down to $5 20. 38 at the market’s close. The company has a market cap north of $5 billion following its first day of trading.
The brick-and-mortar coffee chain has achieved major success in China by offering quick delivery solutions to Chinese customers. The company has nearly 2,400 stores compared to Starbucks’ 3,500, but it has plans to over double that amount by the end of the year as it seeks to become the country’s coffee king.
Luckin’s success does not immediately seem to be thwarting the stock exchange success of Starbucks, and this has had a luminous 2019. The business hit a second all-time high Friday, closing the day at $78. 91, up over 35% from a year ago, lending the Seattle company a market cap of nearly $96 billion. )
Starbucks and Luckin Coffee might look like mortal enemies, however, their rivalry is much more complex than one might immediately think. Check out our Extra Crunch dive from earlier this week about the company’s financials.