Luckin Coffee is managing its growth well, but investors’ caffeine high may still wear off. WSJheard explains. WSJWhatsNow
China’s home-brewed coffee champion is on a lucky streak. Investors may want to cut back on the froth.
Last year was a hot year for Luckin Coffee, China’s answer to Starbucks. The company more than doubled its domestic store count to 4,507, likely making it the country’s largest coffee chain—ahead of Starbucks, which had 4,125 stores in China as of September. Unlike the American coffee giant, however, Luckin mostly has stores for customers to grab a drink and go rather than sit down.
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