JDEPF - Coffee talk: Starbucks Dutch Bros or Luckin for that quick jolt?
The coffee store chain sector had a riveting week, led by Dutch Bros. (NYSE:BROS) blazing a gain of more than 100% gain from its IPO pricing level before falling back a bit. The strong start for the niche coffee chain company was based on investor confidence on the company's strong expansion plan. In its IPO filing, BROS said it aims to grow to 4K shops from a current level of 471 locations. Starbucks (NASDAQ:SBUX) had a trickier time after Yum China warned on profit to send shares lower. Wells Fargo says it is important to remember that while China is a major engine of long-term growth for the brand, the current financial impact of the business is dwarfed by the U.S. segment. Showing no fear over the long-term story on SBUX, Wells Fargo keeps an Overweight rating on SBUX and price target of $136. There was also the usual volatility
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Coffee talk: Starbucks, Dutch Bros or Luckin for that quick jolt?