Luckin Coffee’s Global Expansion to Drive Continued Growth

Luckin Coffee (OTCMKTS: LKNCY), the Chinese coffee chain that dethroned Starbucks (NASDAQ: SBUX) as the leading coffeehouse in China, is brewing its next chapter of growth overseas. In 2023, Luckin reported revenue of CN¥24.9 billion, outpacing Starbucks’ Chinese revenue of CN¥21.4 billion, and cemented its dominance with 16,248 stores in China, more than double Starbucks’ 7,004 locations in China. Now, the company is expanding its footprint into Malaysia, marking its second international market after Singapore.

The move comes as Luckin continues its robust growth trajectory, with a projected revenue increase of +37% year-over-year for 2024, reaching CN¥34.1 billion. In contrast, Starbucks’ revenues in China are expected to contract by -1%, with a forecasted CN¥21.8 billion in 2024 and 7,763 stores. In 2024, Luckin is expected to operate a total of 22,549 stores, including those in Singapore and Malaysia, further solidifying its expansion strategy. The chain is also reportedly planning further expansion across Southeast Asia and the U.S., targeting cities with large Chinese student and tourist populations.

Luckin’s success story has been anything but smooth. In 2020, the company was delisted from the NASDAQ after admitting to inflating sales by over $300 million. Despite this setback, Luckin’s growth remained resilient. By 2022, it had already surpassed Starbucks in store count within China. The chain’s revenue overtook Starbucks’ Chinese revenue by the following year.