LK - Luckin Coffee Inc.

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
50.02
+1.49 (+3.07%)
At close: 4:00PM EST
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Previous Close48.53
Open49.15
Bid50.06 x 800
Ask50.15 x 800
Day's Range49.06 - 51.38
52 Week Range13.71 - 51.38
Volume17,419,363
Avg. Volume9,698,641
Market Cap12.145B
Beta (5Y Monthly)N/A
PE Ratio (TTM)N/A
EPS (TTM)N/A
Earnings DateNov 12, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est42.41
  • GlobeNewswire

    Luckin Coffee Inc. Announces Full Exercise of Option by the Underwriters to Purchase Additional American Depositary Shares

    Luckin Coffee Inc. (“Luckin Coffee” or the “Company”) (LK), a pioneer of a technology-driven new retail model to provide coffee and other products of high quality, high affordability, and high convenience to customers, today announced the closing of the issuance of an additional 1.35 million American Depositary Shares (“ADSs”), each representing eight Class A ordinary shares of the Company, and 0.72 million ADSs offered by the selling shareholder, at US$42.00 per ADS, pursuant to the exercise in full of the underwriters’ option to purchase such additional ADSs in connection with the previously announced follow-on public ADSs offering (“the ADS Offering”). The Company also announced the closing of the issuance of an additional US$60 million in aggregate principal amount of the previously announced concurrent offering of convertible senior notes of the Company (the “Concurrent Note Offering”).

  • GlobeNewswire

    Luckin Coffee Inc. Announces Full Exercise of Option by Initial Purchasers to Purchase Additional Convertible Senior Notes

    Luckin Coffee Inc. (“Luckin Coffee” or the “Company”) (LK), a pioneer of a technology-driven new retail model to provide coffee and other products of high quality, high affordability, and high convenience to customers, today announced that it closed the issuance of an additional US$60 million in aggregate principal amount of the convertible senior notes due 2025 (the “Notes”), pursuant to the exercise in full of the initial purchasers’ option to purchase such additional notes in connection with the previously announced note offering (the “Note Offering”). The Company also announced the closing of the issuance of an additional 2.07 million American Depositary Shares (“ADSs”) of the previously announced follow-on public offering of ADSs (the “ADS Offering”).

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  • Benzinga

    Pro Investor Says Luckin Coffee More Than Just A Popular Coffee Brand

    China -based Luckin Coffee Inc (NASDAQ: LK ) is blessed with the opportunity of selling coffee in a country with a population of more than 1 billion. The case for liking the Starbucks Corporation (NASDAQ: ...

  • You Should Down Luckin Coffee Stock While It’s Hot
    InvestorPlace

    You Should Down Luckin Coffee Stock While It’s Hot

    Amid the much hyped but ultimately disappointing spate of initial public offerings stands Luckin Coffee (NASDAQ:LK). Unlike names such as Uber (NYSE:UBER) or Lyft (NASDAQ:LYFT), Luckin doesn't deal with technology per se. Rather, it focuses on delivering a longtime crowd favorite, coffee, to an emerging economic superpower. But has the dramatic enthusiasm for LK stock reached the point of irrationality?Source: Keitma / Shutterstock.com It's a fair question for prospective buyers to ask. Since its IPO price of $17, LK stock has launched toward its present level above $45. Doing the quick math, that's more than a 165% return. Even more impressive, shares haven't even turned a year old yet. Still, fresh names in the markets have a tendency for volatility.However, the investors that have bought in comfort themselves with Luckin Coffee's underlying sector. Although China is traditionally a tea-drinking mecca, the Asian juggernaut has rapidly embraced Western cultural elements and products. And one of the longstanding traditions of the West is coffee.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMoreover, Chinese consumers have embraced the pick-me-up. According to one statistic, China's coffee market will be worth something like $145 billion by 2025. * 9 Up-and-Coming Small-Cap Stocks to Watch For perspective, the U.S. coffee market reached between $87 billion to $88 billion in 2018. Now you can see why so many early-bird investors are enthused about LK stock.But should you dive into this name at this point in the game? Although the potential for upside certainly exists, here are three reasons why I'm cautious over the long run. Margins for LK Stock Are WorrisomeTypically, investors give upstart growth firms like Luckin Coffee some leeway in terms of profitability metrics. They understand that some companies must eschew profits for growth. Once their expansionary strategy is complete, these firms can later switch back to returning value for shareholders.However, not all businesses and industries are the same. For food and beverage companies, for example, I'd much prefer them to be profitable out of the gate. In this case, coffee is coffee -- it shouldn't cost that much to make relative to top-line sales.And that's not just my opinion. Experts in the food and beverage market suggest aiming for gross margins around 75%.But for LK stock, the underlying gross margin was negative until the quarter ending June 30. Plus, in the most recently reported quarter ending Sep. 30, net income losses widened year-over-year.Now, I'm willing to overlook such metrics for a tech firm that is developing a quantum computer for the masses. But Luckin is not in that business at all. Instead, it's making coffee, which is hardly a unique product. Thus, to minimize my risk as a potential shareholder, I'd prefer profitability. Certainly, I don't want to see deeper losses. Luckin's Playing a Dangerous GameFor the optimists of LK stock, they often point to the underlying company's duel with sector giant Starbucks (NASDAQ:SBUX). In order to counter Starbucks' dominant reach, Luckin is fighting fire with fire. By focusing on smaller shops that facilitate easy pick up, Luckin has expanded its physical footprint at an astonishing rate.In fact, Luckin CFO Reinout Schakel told CNBC's Squawk Box, "We have done what most people do in 15 or 20 years." Naturally, many folks jumped on LK stock on the idea that Starbucks finally met its match.I'm probably in the extreme minority here when I say this. However, when Schakel made his statement, I didn't view it as a positive. If you're growing that fast, you're at least taking serious risks somewhere else.And that somewhere else is Starbucks' delivery initiative. Partnering with Alibaba (NYSE:BABA), Starbucks has added delivery options for over 2,100 of its China-based stores. Furthermore, China Daily reported that the country's online food ordering and delivery market hit 441.5 billion yuan ($65.8 billion) in 2018. That was up 112.5% over the prior year.Yes, Luckin's expanding footprint is a positive for LK stock, don't get me wrong. However, Starbucks is at least mitigating this advantage through its deliveries. Furthermore, Chinese consumers are willing to pay for this service.With Luckin's financials stretched for growth, it's possible the company may have overextended itself with its footprint strategy. Not Understanding the AudienceOne of the biggest mistakes you can make in public speaking is not understanding your audience. By not doing your homework, you can quickly lose the purpose of your engagement. So it is with business.Through its use of aggressive discounts, Luckin has presented the image of the everyday affordable coffee shop. But if that was the real intention, it's off on the wrong foot. Based on the poor margins and steep net income losses, it will have to raise prices at some point. When it does, it will lose many of their budget-sensitive customers.Moreover, the Chinese audience is different from the Western one in that it has no historical frame of reference for pleasures of modernity. As a result, things that we take for granted here in the U.S. are often considered luxuries in China.Sure enough, one of those perceived luxuries is coffee. According to the University of Southern California's US-China Institute, many well-to-do Chinese consumers prefer name-brand, high-priced coffee because of their status symbol. "For coffee consumers in China, Starbucks and other Western coffee brands enable them to show off their wealth and good taste," Rebecca Harbeck writes.You're just not going to get that experience from and discount-brand Luckin Coffee. And when Luckin stops giving out those discounts because it can't? I'm not sure if LK stock can reasonably compete against Starbucks or other premium, internationally recognized brands.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 9 Up-and-Coming Small-Cap Stocks to Watch * 7 Energy Stocks to Buy on the Resurgence of the Oil Boom * 3 Standout Oil Services Stocks to Buy The post You Should Down Luckin Coffee Stock While Ita€™s Hot appeared first on InvestorPlace.

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  • GlobeNewswire

    Luckin Coffee Inc. Announces Completion of Follow-on Public Offering of American Depositary Shares

    Luckin Coffee Inc. (“Luckin Coffee” or the “Company”) (LK), a pioneer of a technology-driven new retail model to provide coffee and other products of high quality, high affordability, and high convenience to customers, today announced the completion of the public offering of 9.00 million American depositary shares (the “ADSs”), each representing eight Class A ordinary shares of the Company (the “Primary ADS Offering”), and 4.8 million ADSs offered by the selling shareholder (the “Secondary ADS Offering”, together with the Primary ADS Offering, the “ADS Offering”), at US$42.00 per ADS. Luckin Coffee will not receive any proceeds from the sale of ADSs by the selling shareholder. The Company and the selling shareholder have granted the underwriters of the ADS Offering a 30-day option to purchase up to an additional 2.07 million ADSs.

  • GlobeNewswire

    Luckin Coffee Inc. Closes Offering of US$400 Million Convertible Senior Notes

    Luckin Coffee Inc. (“Luckin Coffee” or the “Company”) (LK), a pioneer of a technology-driven new retail model to provide coffee and other products of high quality, high affordability, and high convenience to customers, today announced that it closed the offering (the “Notes Offering”) of US$400 million in aggregate principal amount of convertible senior notes due 2025 (the “Notes”). The Company has granted the initial purchasers in the Notes Offering an option to purchase up to an additional US$60 million in aggregate principal amount of the Notes. The Company also closed the previously announced concurrent offering of American depositary shares (“ADSs”) of the Company.

  • Luckin Coffee (LK) Catches Eye: Stock Jumps 6%
    Zacks

    Luckin Coffee (LK) Catches Eye: Stock Jumps 6%

    Luckin Coffee (LK) saw a big move last session, as its shares jumped nearly 6% on the day, amid huge volumes.

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  • GlobeNewswire

    Luckin Coffee Inc. Announces Pricing of US$400 Million Convertible Senior Notes

    Luckin Coffee Inc. (“Luckin Coffee” or the “Company”) (LK), a pioneer of a technology-driven new retail model to provide coffee and other products of high quality, high affordability, and high convenience to customers, today announced the pricing of its previously announced offering (the “Notes Offering”) of US$400 million in aggregate principal amount of convertible senior notes due 2025 (the “Notes”). The Company has granted the initial purchasers in the Notes Offering an option to purchase up to an additional US$60 million in aggregate principal amount of the Notes. The Company plans to use the net proceeds from the Notes Offering for general corporate purposes, which may include store network expansion, unmanned retail initiative, capital expenditure, research and development, sales and marketing, business development, international expansion, working capital, and other general and administrative matters.

  • GlobeNewswire

    Luckin Coffee Inc. Announces Pricing of Upsized Follow-on Public Offering of American Depositary Shares

    Luckin Coffee Inc. (“Luckin Coffee” or the “Company”) (LK), a pioneer of a technology-driven new retail model to provide coffee and other products of high quality, high affordability, and high convenience to customers, today announced the pricing of an upsized public offering of 9.00 million American depositary shares (the “ADSs”), each representing eight Class A ordinary shares (the “Primary ADS Offering”), and 4.80 million ADSs offered by the selling shareholder (the “Secondary ADS Offering” and, together with the Primary ADS Offering, the “ADS Offering”), at US$42.00 per ADS. Luckin Coffee will not receive any proceeds from the sale of ADSs by the selling shareholder. The Company and the selling shareholder have granted the underwriters of the ADS Offering a 30-day option to purchase up to an additional 2.07 million ADSs.

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    Dow Jones Futures: As Stock Market Rally Tests Limits, Don't Buy These 5 Hot Stocks Now

    Futures: The market rally is getting a little euphoric, one more reason to avoid already-extended stocks Apple, Tesla, AMD, Alibaba and Luckin Coffee right now.

  • Luckin Coffee Inc. Analysts Are Pretty Bullish On The Stock After Recent Results
    Simply Wall St.

    Luckin Coffee Inc. Analysts Are Pretty Bullish On The Stock After Recent Results

    Shareholders will be ecstatic, with their stake up 21% over the past week following Luckin Coffee Inc.'s (NASDAQ:LK...

  • Bloomberg

    China’s Starbucks Rival Luckin Snags $778 Million in New Funds

    (Bloomberg) -- Luckin Coffee Inc., the Chinese challenger to Starbucks Corp., has raised a combined $778 million from an additional share sale and a convertible bond offering, topping the amount fetched in its initial public offering last year, people with knowledge of the matter said.The coffee chain upstart, which opened its first store in Beijing in 2017, sold $378 million in new shares at $42 each and a $400 million five-year convertible, the people said, who aren’t authorized to speak publicly and asked not to be identified. The fundraising came less than a year after it raised $645 million in a U.S. listing in May 2019.The cash will help fund its breakneck pace of expansion in China, where it’s seeking to upend Starbucks’s dominance. The company will also use the money to push for international expansion and an “unmanned retail initiative.” The total number of Luckin Coffee stores at the end of September was 3,680, representing a more than two-fold increase from a year earlier.Chinese firms listed overseas -- and particularly in the U.S. -- have been raising additional funds through follow-on share sales or convertibles at an unprecedented pace as many of them need to fund their high growth. NIO Inc., iQIYI Inc., Pinduoduo Inc. and HUYA Inc. all returned to equity markets for sizable offerings within a year of listing.In total, Chinese firms that went public in the U.S. in 2018 raised $4.3 billion selling additional shares and convertible bonds within their first year of trading, according to data compiled by Bloomberg. Convertible bonds made up more than half of that amount, the data show.Luckin Coffee, one of the few U.S. listings by a Chinese firm to have performed well last year, was well placed to tap the market. Its share price has almost tripled since the float, making it the best performer among last year’s cohort, data compiled by Bloomberg show. Since the announcement of the convertible bond and share sale on Tuesday evening U.S. time, Luckin Coffee’s stock price has risen a further 26%.In a sign of strong demand for its latest offering, the number of shares offered was increased by 1.8 million, the people said. The convertible bond was priced in the middle of the marketed coupon range of 0.5% and 1%, with a conversion premium of 30%.Shareholder Centurium Capital also sold 4.8 million shares this week, raising $202 million.To contact the reporters on this story: Julia Fioretti in Hong Kong at jfioretti4@bloomberg.net;Lulu Yilun Chen in Hong Kong at ychen447@bloomberg.net;Vinicy Chan in Hong Kong at vchan91@bloomberg.netTo contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, Margo TowieFor more articles like this, please visit us at bloomberg.com©2020 Bloomberg L.P.

  • Benzinga

    Option Traders Make Big Bets Luckin Coffee Rally Isn't Over

    ADR (NASDAQ: LK) have skyrocketed 134% in the past three months, pushing the stock to above $43. At 10:16 a.m. ET, a trader bought 1,100 Luckin call options with a $45 strike price expiring on Jan. 17. At 10:17 a.m. ET, a trader bought 513 Luckin call options with a $49 strike price expiring on Jan. 24.

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    Starbucks Stock, Up 37% in 2019, Rises on Barclays Upgrade

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  • Financial Times

    Luckin Coffee taps into thirst for Chinese convertible bonds

    made a splash this week by announcing a sale of at least $400m of convertible bonds, as it pushes to overtake Starbucks in its home market. The debt instruments, which switch into equity if shares rise to a pre-determined price, were a big hit with global investors last year. Luckin’s early dip into the market in 2020 suggests the market’s thirst is not yet sated.

  • MarketWatch

    Luckin Coffee launches smart vending machines, Luckin Pop

    Beijing-based Luckin Coffee Inc. announced the launch of Luckin Pop, a smart vending machine, and Luckin Coffee Express, a smart coffee machine, early Wednesday at a press conference. Luckin Pop will be in office buildings, bus terminals, airports and on college campuses and other locations. These two new channels are part of the "unmanned retail network" that Luckin is building, which does away with payroll and rental costs, as well as other expenses, the company said. At the end of 2019, Luckin Coffee had 4,507 self-operated stores. Luckin stock is up 3.6% in Wednesday trading, and has nearly doubled, up 96.3% over the past three months. The S&P 500 index is up 12.2% over the last three months.

  • Benzinga

    Starbucks Biggest Chinese Rival Expands Into Vending Machines Business

    The Xiamen-based company is now expanding into the vending machine business to sell hot and cold beverages, and snacks, Reuters reported on Wednesday. "It allows us to get closer to consumers and we are not restricted by the license approvals," Qian Zhiya, the company's chief executive officer, said at an event where two vending machines were launched, according to Reuters. Luckin's total number of outlets in China increased to 4,500 by the end of 2019, ahead of its competitor Starbucks Corporation's (NASDAQ: SBUX) 4,300.

  • Luckin Coffee seeks more of China market, launches equity deals worth $821 million
    Reuters

    Luckin Coffee seeks more of China market, launches equity deals worth $821 million

    BEIJING/HONG KONG (Reuters) - Luckin Coffee Inc said it is expanding into vending machines that sell freshly brewed hot beverages and snacks, seeking even more of the China market after overtaking Starbucks Corp as the country's biggest coffee chain by number of stores. Luckin founder and CEO Qian Zhiya said the new strategy allowed it to be asset-light and nimble. The three-year-old startup on Wednesday also launched a share placement and a convertible bond worth a combined $821 million, according to two term sheets seen by Reuters, at a time when global stocks fell as Iran fired rockets at U.S.-led forces in Iraq.