Core Insights - Luckin Coffee's major shareholder, Dazhong Capital, is considering acquiring Costa Coffee, which is currently under Coca-Cola's ownership and is in preliminary discussions for sale [1][5] - Starbucks has recently completed a restructuring of its China operations, forming a joint venture with Boyu Capital valued at $4 billion [1] - The restaurant industry is experiencing a wave of mergers and acquisitions across various segments, including coffee and fast food [3] Company Developments - Luckin Coffee reported a total net revenue of 15.287 billion yuan in Q3, a year-on-year increase of 50.2%, with a GAAP operating profit of 1.777 billion yuan and an operating margin of 11.6% [5] - Costa Coffee currently has approximately 341 stores in China, ranking 12th in terms of store count, with only one store remaining in Shenzhen [5][6] - Dazhong Capital, which played a key role in Luckin's restructuring after its scandal, is not the only interested buyer for Costa, as multiple private equity firms and strategic investors are also looking into the acquisition [5] Industry Trends - The fast-food sector is also seeing significant mergers, with CPE Yuanfeng investing $350 million in Burger King China, aiming to increase its store count from 1,250 to over 4,000 by 2035 [7] - The restaurant industry is characterized by three notable trends: controlling acquisitions becoming mainstream, increasingly complex transaction structures, and a diverse range of acquisition entities including private equity and industry capital [7] - Companies in the restaurant sector are leveraging mergers as a strategic approach to growth, especially in a fragmented market [8]