LKNCY - Luckin Coffee soars to new high after earnings jolt
2023-08-01 12:15:47 ET
Luckin Coffee ( OTCPK:LKNCY ) shot up in afternoon trading after the Chinese coffee store operator reported a revenue spike of 88% in Q2 to $855.2M. Average monthly transacting customers in the second quarter was up 108% to 43.1M against the soft comparable to a year ago when COVID restrictions cut into mobility in China.
Store level operating profit was 29.1% of sales vs. 28.4% a year ago. Non-GAAP operating income margin improved to 19.9% of sales vs. 10.4% a year ago.
Net new store openings during the second quarter were 1,485, including five new store openings in Singapore, resulting in a quarter-over-quarter store unit growth of 15.9% from the number of stores at the end of Q1. Luckin Coffee ( OTCPK:LKNCY ) ended the quarter with 10,836 stores, which included 7,188 self-operated stores and 3,648 partnership stores.
CEO update: "Our new, innovative product offerings and marketing efforts continue to resonate with customers, driving significant growth in product revenue and monthly transacting customers. In June 2023, we reported a record 50 million transacting customers and opened our 10,000th store, making us the first coffee chain in China with 10,000 stores and cementing our position as China’s largest coffee chain brand. To build upon our momentum and leadership position in the highly competitive coffee market in China, we recently announced our new brand initiative, LUCK IN HAND."
Shares of Luckin Coffee ( OTCPK:LKNCY ) rallied 11.57% to $32.69 in early afternoon trading. Volume on LK was at a higher than normal level. Earlier in the session, the consumer stock carved out a new 52-week high of $33.07.
More on Luckin Coffee:
- Luckin Coffee: Q2 2023 New Store Opening Updates
- Valuation metrics on Luckin Coffee
- Relative strength index and moving averages
- Recent option trades
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Luckin Coffee soars to new high after earnings jolt