Luckin, a Starbucks rival, rises in US stock debut
NEW YORK — Shares of Luckin Co≠ee, a fast-growing rival to Starbucks in China, rose 20% in their U.S. stock market debut Friday.
The Chinese company, which opened its first store in Beijing less than two years ago, has 2,370 locations and plans to surpass the 3,700 stores Starbucks has in China by the end of the year.
But unlike Starbucks, Luckin is losing money.
It brought in $125 million in revenue last year, but spent much more than that on co≠ee beans, store rent and other costs. Last year, it lost $475 million.
Most of Luckin’s stores are small, have few seats and are used mainly as a place to pick up mobile orders. It also offers delivery in 30 minutes and promises a refund for delays or spilled drinks. Through its app, customers can watch their coffee being made after making an order.
Luckin raised $561 million in its initial public o≠ering Friday by selling 33 million American depositary shares at $17 apiece.
The ADS, which are trading on Nasdaq under the symbol “LK,” closed at $20.38 after rising as high as $25.96 earlier in the day.
Walmart plans for new Bentonville headquarters
BENTONVILLE, Ark. — Walmart has released additional plans for its new 350-acre northwest Arkansas campus that will include four quadrants connected by bike and walking paths, an on-campus childcare facility and a fitness center.
The world’s largest retailer said Friday that new buildings will be designed and constructed in the next two years, with a goal of opening the site in phases between 2020 and 2024.
The new site is blocks away from its current Bentonville Home O∞ce, which was built in 1971.
Walmart says its new headquarters will include solar panels on some buildings and parking decks. It’ll also have “flexible workspaces” and various dining options.
Walmart announced it was moving its headquarters in 2017. It has not said how much it will cost to replace the old o∞ce.