Starbucks' sales in China are critical to its future. Currently, U.S. and China stores make up 61% of its global presence, with Starbucks operating 7,758 stores in China. Luckin Coffee poses an overwhelming challenge, having 22,000 stores and recently opening its first U.S. location. Investors are nervous as Starbucks' revenue increased by only 1% to $6.5 billion, and per-share earnings dropped 50%. CEO Brian Niccol is implementing changes, but Starbucks stock has decreased by 6.6% in the past three months amidst growing competition.
Starbucks' revenue rose only 1% to $6.5 billion in the first quarter, while per-share earnings fell by 50% to $0.30, raising investor concerns.
Luckin Coffee poses a significant threat to Starbucks in China, boasting 22,000 stores and recent expansion into the U.S. market.
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