LKNCY - Luckin Coffee gains after posting sizzling growth

2023-05-01 08:24:45 ET

Luckin Coffee ( OTCPK:LKNCY ) reported revenue growth of 85% in Q1 and 1,137 new store openings.

The coffee chain operator said revenue growth was primarily driven by the increase in the number of products sold, the increase in stores in operation, and the increase in the number of monthly transacting customers.

Operating expenses as a percentage of sales decreased to 84.7% from 99.3% in the same quarter of 2022, due to increased economies of scale and the Company’s technology-driven operations.

Quo Vadis analyst John Zolidis said the Luckin Coffee ( OTCPK:LKNCY ) results beat expectations. "We would certainly maintain Long positions and look to add on any market weakness," he noted.

Shares of Luckin Coffee ( OTCPK:LKNCY ) rose 1.81% in premarket trading to $26.98.

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