Why Luckin Coffee Soared 21.8% in February
Shares of Luckin Coffee (NASDAQ: LK) soared 21.8% in February, according to data from S&P Global Market Intelligence.
The coffee chain famous for its pick-up stores in China has been rapidly expanding, with total store count more than tripling in just a year, from 1,189 stores to 3,680 as of Sept. 30, 2019. Revenue has jumped almost sevenfold year-over-year for the third quarter of the fiscal year 2019, soaring from 240.8 million yuan ($34.6 million) to 1.54 billion yuan ($221 million) .
However, the two-year-old start-up continues to burn significant amounts of cash and incur huge losses, which seem to be a symptom of its breakneck pace of growth.
Source Fool.com
