Starbucks (NASDAQ: SBUX) and Luckin Coffee stock prices have come under intense pressure this year amid rising robusta coffee prices and demand. SBUX shares crashed to a low of $88.50 on Thursday, its lowest level since October 2023. It has crashed by over 21% from its highest point in 2023, meaning it has moved into a deep bear market.Luckin Coffee (LKNCY) stock price is doing much better than Starbucks. It has risen by over 28.6% from its lowest level this year and it remains 35% below the highest level i ...

Many if not most people believe that the Street is nearly omniscient. These individuals contend that the price which the market assigned to a stock correctly reflects its current value and its short and medium-term outlook. But in my experience, that’s often not the case. You can often find large returns by picking contrarian stocks. For example, when the Covid pandemic began in early 2020 stocks plunged, with the Street expecting disaster. By the end of the year however, the market was enjoying one of its ...

Luckin Coffee Inc. (OTCPK:LKNCY) Q4 2023 Results Conference Call February 23, 2024 8:00 AM ET Company Participants Alicia Guo - Head of Investor Relations Guo Jinyi - Chairman and CEO Jing An - Chief Financial Officer Operator Ladies and gentlemen, welcome to Luckin Coffee's Fourth Quarter and Full-Year 2023 Earnings Conference Call. All participants will be in listen-only mode during management’s prepared remarks, and there will be a question-and-answer session to follow. Today's conference is being record ...

Financial Performance - Total net revenues in Q4 2023 were RMB7,065.0 million (US$995.1 million), an increase of 91.2% from RMB3,695.0 million in Q4 2022[8]. - Total net revenues for fiscal year 2023 were RMB24,903.2 million (US$3,507.5 million), representing an increase of 87.3% from RMB13,293.0 million in fiscal year 2022[7]. - Net income for Q4 2023 was RMB296.4 million (US$41.7 million), with a net income margin of 4.2%, compared to RMB54.5 million (1.5%) in Q4 2022[15]. - Non-GAAP net income for Q4 2023 was RMB356.6 million (US$50.2 million), representing a non-GAAP net income margin of 5.0%, up from RMB166.9 million (4.5%) in Q4 2022[15]. - Net income for the year ended December 31, 2023, was RMB 2,847,933, compared to RMB 488,246 for the year ended December 31, 2022, representing a significant increase[38]. - The total comprehensive income attributable to ordinary shareholders for the year ended December 31, 2023, was RMB 2,847,573 thousand, compared to RMB 488,246 thousand in 2022, indicating a substantial increase[39]. Customer Growth - Average monthly transacting customers in Q4 2023 reached 62.4 million, a 154.2% increase from 24.6 million in Q4 2022[4]. - Average monthly transacting customers reached 62,438 in Q4 2023, compared to 24,559 in Q4 2022, indicating strong customer growth[20]. Store Expansion - Net new store openings in fiscal year 2023 were 8,034, resulting in a year-over-year store unit growth of 97.8%[7]. - Total stores increased to 16,248 as of December 31, 2023, up from 8,214 a year earlier, reflecting significant expansion[20]. Revenue Sources - Revenues from self-operated stores in Q4 2023 were RMB5,103.4 million (US$718.8 million), an increase of 89.2% from RMB2,697.1 million in Q4 2022[4]. - Revenues from partnership stores in Q4 2023 were RMB1,763.8 million (US$248.4 million), an increase of 109.1% from RMB843.4 million in Q4 2022[11]. - Revenues from product sales in Q4 2023 were RMB 5,301,221, up 85.8% from RMB 2,851,660 in Q4 2022[38]. Operating Income and Expenses - GAAP operating income in Q4 2023 was RMB212.7 million (US$30.0 million), with a GAAP operating income margin of 3.0%, down from 8.5% in Q4 2022[13]. - Store level operating profit for self-operated stores in fiscal year 2023 was RMB3,974.9 million (US$559.9 million), with a margin of 22.2%[7]. - Store level operating profit margin for self-operated stores decreased to 13.5% in Q4 2023 from 21.6% in Q4 2022, attributed to lower average selling prices[14]. - Delivery expenses rose to RMB467.4 million (US$65.8 million) in Q4 2023, a 23.3% increase from RMB379.1 million in Q4 2022, driven by higher delivery orders[14]. - Sales and marketing expenses surged to RMB399.1 million (US$56.2 million) in Q4 2023, a 130.2% increase from RMB173.4 million in Q4 2022, reflecting strategic branding investments[14]. - General and administrative expenses were RMB562.0 million (US$79.2 million) in Q4 2023, up 36.6% from RMB411.4 million in Q4 2022, primarily due to increased payroll and R&D costs[14]. Cash Flow and Assets - Cash and cash equivalents as of December 31, 2023, were RMB3,752.7 million (US$528.6 million), an increase from RMB3,577.9 million a year earlier, driven by higher operating profits[18]. - Net cash used in operating activities was RMB926.7 million (US$130.5 million) in Q4 2023, a significant decline from net cash provided of RMB48.3 million in Q4 2022, mainly due to increased raw material purchases[17]. - Cash and cash equivalents as of December 31, 2023, were RMB 3,534,304, an increase from RMB 2,925,709 as of December 31, 2022[36]. - Total assets decreased to RMB 10,480,397 as of December 31, 2023, from RMB 18,291,978 as of December 31, 2022[36]. - Total liabilities decreased to RMB 3,853,110 as of December 31, 2023, from RMB 8,577,533 as of December 31, 2022[36]. Strategic Initiatives - The company launched more than 100 SKUs in 2023 to cater to diverse customer needs[6]. - The company plans to continue expanding its technology-driven retail network to enhance customer experience and brand recognition[33]. - Luckin Coffee aims to maintain its growth strategies in the competitive coffee industry, focusing on quality control and customer retention[33]. - The company is committed to ongoing product innovation and market expansion to solidify its position in the food and beverage sector[33].

VCG/Visual China Group via Getty Images Luckin Coffee (OTCPK:LKNCY) is a Chinese coffee chain founded in 2017 with a digital-first business model that had been rapidly growing to overtake Starbucks (SBUX) before accounting fraud issues led to bankruptcy. Since 2022, they have been rebuilding trust under new management. So far, things have been looking relatively good. Since 2022, the share price has nearly doubled, though performance has been rather volatile. Luckin saw a 1-year high of $34 in just October ...

Luckin Coffee (LKNCY) stock price will be on edge on Wednesday as investors read the tea leaves from the latest Starbucks earnings report. Shares of Luckin, the biggest Chinese coffee giant, have plunged by more than 43% from their highest point in 2023.China economic woesCopy link to sectionLuckin Coffee is one of the fastest growing coffee chains in the world. In just a few years, the company has moved from zero stores to over 13,700 in the last quarter and the management expects that this growth will acc ...

Completed company carbon inventory and verification by Bureau Veritas for the first time The scope of the verification includes Luckin Coffee's office areas, factories and stores in 2022, laying the development foundation for the of future carbon reduction targets. Completed product carbon footprint 2verification for the first time Compared to regular Latte, one cup of Coconut Milk Latte has (hot drink) (iced drink) Notes: (1) Carbon emission • Scope 1 emissions are direct emissions from owned or controlled ...

Luckin Coffee Inc. (OTCPK:LKNCY) Q3 2023 Earnings Conference Call November 1, 2023 8:00 AM ET Company Participants Alicia Guo - IR Jinyi Guo - Chairman and CEO Jing An - CFO Reinout Schakel - CSO Conference Call Participants Operator Ladies and gentlemen, welcome to Luckin Coffee's Third Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode during management's prepared remarks and there will be a question-and-answer session to follow. Today's conference is being recorded. At th ...

More Than 2,400 Net New Store Openings; Ended Quarter With More Than 13,000 Stores BEIJING, November 1, 2023 (GLOBE NEWSWIRE) — Luckin Coffee Inc. ("Luckin Coffee" or the "Company") (OTC: LKNCY) today announced its unaudited financial results for the three months ended September 30, 2023. Exhibit 99.1 Luckin Coffee Inc. Announces Third Quarter 2023 Financial Results Third Quarter Net Revenues Increased 84.9% To RMB7.2 Billion Record High Average Monthly Transacting Customers THIRD QUARTER 2023 HIGHLIGHTS Pl ...

Financial Data and Key Metrics Changes - The company achieved total net revenue of RMB6.2 billion, representing an 88% year-on-year growth [5][60] - The operating profit margin was reported at 18.9%, with a net profit margin of 16.1% for the second quarter [12][61] - The number of cumulative transacting customers surpassed 170 million, with an average of 43.07 million monthly transacting customers [5][11] Business Line Data and Key Metrics Changes - Revenue from self-operated stores reached nearly RMB4.5 billion, reflecting an 85.2% year-over-year increase, while same-store sales growth was over 20.8% [10] - Partnership stores saw a revenue increase of 91.1% year-over-year, reaching nearly RMB1.5 billion [10] Market Data and Key Metrics Changes - The company maintained its position as the largest coffee shop chain in China, with self-operated and partnership stores across 70 and 265 cities, respectively [11] - The coffee market in China is experiencing rapid growth, with significant potential for further expansion [50] Company Strategy and Development Direction - The company launched a new brand concept called LUCK IN HAND and initiated a promotional campaign offering high-quality coffee at RMB9.9 [3][18] - The company plans to continue expanding its presence in international markets, with seven stores in Singapore as of the end of the second quarter [19] - The focus remains on enhancing operational efficiency, brand building, and sustainable development [37][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in maintaining profitability while expanding market share through the RMB9.9 promotional campaign [28][29] - The company aims to achieve long-term, sustainable growth while enhancing customer value and brand influence [47][50] Other Important Information - The company reported a net operating cash inflow of RMB1,444.4 million, a significant improvement from the previous year [27] - General and administrative expenses as a percentage of revenue decreased from 10.4% to 6.9% year-over-year, indicating improved efficiency [26] Q&A Session Summary Question: How can you balance scale advantages and profitability while maintaining a competitive leading position? - Management noted that the RMB9.9 promotion has driven increased revenue and profit margins, reflecting customer recognition and brand loyalty [28] Question: Will you accelerate the speed of store openings in the second half of 2023? - The company confirmed plans to continue expanding its store network and emphasized the importance of a new partnership model to encourage high-quality partners [49][50]