They have taken market share in China over Starbucks a long time ago and are expanding like crazy. Their PE is less than 3 problems because it’s an OTC. Their coffee is really nice and a fraction of the price of Starbucks. LKNCY have shown they can adapt easily unlike Starbucks. They are expanding to South East Asia now and have already expanded to the US. Do you think this is a possible long term play?
I know it’s a Chinese company and there was a scandal within LKNCY in 2020 but they fired everyone involved, changed the board, hired new leadership. Closed a bunch of stores, paid off all penalties and reinvigorated the company to be the dominant coffee company in Asia. Bigger and more profitable than Starbucks, so much so that Starbucks is running for the hills but luckin is chasing them home.
What are your thoughts?