SBUX - Luckin Coffee Stages Remarkable Comeback Overtakes Starbucks In China | Benzinga
Luckin Coffee (OTC:LKNCY), the Chinese coffee chain, has made a remarkable recovery after a major accounting scandal in 2020. The company has not only survived but has also emerged as a fierce competitor to Starbucks Corporation (NASDAQ:SBUX).
What Happened: Luckin Coffee, once considered China’s answer to Starbucks, has made a surprising comeback, reported Bloomberg on Thursday. The company’s low-cost lattes have attracted a growing customer base, propelling it to become China’s largest coffee retailer, surpassing Starbucks.
Despite the scandal, Luckin has managed to expand its business to over 18,500 stores, doubling from the previous year. The company has also ventured into smaller cities, where Starbucks has yet to establish a presence. Luckin’s focus on automation, digitization, ...