Skip to main content

Market Overview

Starbucks Biggest Chinese Rival Expands Into Vending Machines Business

Starbucks Biggest Chinese Rival Expands Into Vending Machines Business

Luckin Coffee (NASDAQ: LK) is adopting a more aggressive approach towards capturing the Chinese coffeehouse market.

What Happened

The Xiamen-based company is now expanding into the vending machine business to sell hot and cold beverages, and snacks, Reuters reported on Wednesday.

"It allows us to get closer to consumers and we are not restricted by the license approvals," Qian Zhiya, the company's chief executive officer, said at an event where two vending machines were launched, according to Reuters.

Luckin's total number of outlets in China increased to 4,500 by the end of 2019, ahead of its competitor Starbucks Corporation's (NASDAQ: SBUX) 4,300. The company has aggressively expanded in remote areas unserved by Starbucks.

The coffee chain posted $208.9 million in net revenue in 2019's third-quarter, a whopping 557.6% gain on a year-on-year comparison, beating Wall Street estimates.

Price Action

Luckin's shares closed 1.98% higher at $35.11 on Tuesday.

Starbucks' shares closed 0.31% lower at $87.86. The shares traded further 1.83% lower in the after-hours market.


Related Articles (SBUX + LK)

View Comments and Join the Discussion!

Posted-In: Luckin Coffee StarbucksNews Retail Sales Restaurants Global General Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at