Luckin’s Sales Top Forecast as It Chases Starbucks in China
- CFO says Chinese coffee chain aims to break even next year
- Investors cheer results, driving shares up 13% in New York
A customer exits a Luckin Coffee outlet in Beijing.
Photographer: Gilles Sabrie/BloombergThis article is for subscribers only.
Luckin Coffee Inc., the chain that’s trying to overtake Starbucks Corp. in China, gave investors a jolt of optimism as it reported better-than-expected revenue and said it aims to break even next year.
The Xiamen, China-based company, in its second set of quarterly results since going public in May, reported revenue of 1.54 billion yuan ($219.6 million) for the September quarter. That’s more than six times the year-earlier level, and tops the 1.47 billion yuan average of analysts’ estimates. Luckin’s net loss widened to 531.9 million yuan from 484.9 million yuan a year earlier.