3 Reasons to Buy Luckin Coffee Stock in 2026

Core Viewpoint - Luckin Coffee is experiencing significant growth and is expanding internationally, positioning itself to compete with major players like Starbucks, with a notable increase in share price and business momentum since overcoming a previous scandal [1][2]. Group 1: Business Performance - Luckin Coffee's net revenue surged by 50.2% year over year to $2.14 billion, driven by the opening of 3,008 new stores, primarily in China [6]. - Same-store sales increased by 14.4%, outperforming Starbucks, which reported only 1% growth in its latest financial report [6]. Group 2: International Expansion - The company aims to replicate its success in China by targeting culturally similar Asian markets first, such as Singapore and Malaysia, before entering the U.S. market [8]. - Luckin has opened five locations in New York City, strategically placed in high-traffic areas to enhance brand visibility [9]. - The presence of a large number of Chinese students abroad may facilitate brand recognition and acceptance in new markets [10]. Group 3: Financial Strategy and Valuation - Luckin Coffee's stock is trading at a low valuation, with a forward price-to-earnings multiple of 15, compared to Starbucks at 36 and the S&P 500 average of 22 [12]. - The company is considering acquisitions, such as bidding for Blue Bottle Coffee, to strengthen its position in the premium coffee segment [11]. - Plans to relist in the U.S. could improve the company's valuation and liquidity, potentially doubling the share price in the coming years [13].