Chinese coffee store chain Luckin Coffee Inc (OTCMKTS:LKNCY) was one of the companies to have come into the news cycle after it announced its financial results for the fiscal quarter that ended on March 31, 2022.
Trading Data
On Tuesday, LKNCY stock fell 2.06% to $8.54 with 2.75 million shares, compared to its average volume of 1.97 million shares. The stock moved within a range of $8.51 – 9.20 after opening trade at $9.08.
Luckin Coffee Inc. Announces Unaudited First Quarter 2022 Financial Results
Before going into the specific highlights from the financial results investors need to note that the results were unaudited. Luckin announced that it had generated net revenues to the tune of as much as RMB2404.6 million and that reflected a year-on-year rise of 89.5% from the revenues of RMB1268.7 million in the prior year period.
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On the other hand, Luckin Coffee continued to do well with regard to new store openings as it established as many as 556 new stores in the quarter. That represented a sequential rise of 9.2% from the previous quarter.
The average monthly transacting customers during the first quarter stood at 16 million and that again represented a major jump of as much as 83% from the 8.7 million in the prior-year period. The revenues that had been generated from the partnership had been RMB549.3 million in the quarter and that worked out to a year-on-year rise of as much as 239.3%.
Key Quote
“Our team continues to execute on our strategic plan, delivering another quarter of improved financial and operational results,” said Dr. Jinyi Guo, Chairman and Chief Executive Officer of Luckin Coffee. “Despite continued pandemic-related headwinds, we reported strong bottom and top-line performance, with net revenue growth of 89.5% and same-store sales growth for our self-operated stores of over 40% from the prior year. We also delivered our first quarterly operating profit since our founding. This is an important milestone and serves as validation of our strategic plan and relentless focus on execution.”
Technical Data
LKNCY stock is trading below the 50-Day and 200-Day Moving averages of $8.77 and $11.81 respectively. However, the stock is trading above the 200-Day moving average of $8.12.
