Shares of Luckin Coffee jumped 20% in its first day of trading on the Nasdaq stock market.
After opening at $17.00, shares of the Chinese Starbucks competitor climbed as high as $25.96, or more than 50%, before settling back down to $20.38 at the market’s close. The company has a market cap north of $5 billion after its first day of trading.
The brick-and-mortar coffee chain has achieved major success in China by offering speedy delivery services to Chinese consumers. The company has nearly 2,400 stores compared to Starbucks’ 3,500, but it has plans to more than double that number by the end of the year as it seeks to become the country’s coffee king.
Luckin’s success doesn’t immediately seem to be thwarting the stock market success of Starbucks, which has had a glowing 2019. The company hit another all-time high Friday, closing out the day at $78.91, up more than 35% from a year ago, giving the Seattle company a market cap of nearly $96 billion.
Starbucks and Luckin Coffee may seem like mortal enemies, but their rivalry is more complicated than one might immediately think. Check out our Extra Crunch deep dive from earlier this week on the Xiamen-based company’s financials.