Luckin Coffee is expanding beyond China, reaching 100 Singapore stores and considering Gulf markets with Mubadala backing.

  • Luckin Coffee reached 100 stores in Singapore, attracting over 1.9 million customers since its 2023 launch.
  • The company sees Singapore as a key test for expanding its business model internationally. 
  • Luckin Coffee is considering expansion into Gulf markets after receiving backing from Mubadala. 

Luckin Coffee Inc. (LKNCY) is looking overseas for its next growth phase even as the shares head toward a monthly decline. The Chinese coffee chain has reached 100 stores in Singapore and is exploring a Middle East entry with Mubadala backing. 

Luckin Coffee stock traded up more than 3% overnight, ahead of Tuesday. The stock has declined nearly 6% in September after two straight months of gains. 

Luckin Coffee Hits 100 Singapore Stores 

Luckin Coffee is stepping up its international expansion as it looks beyond China for new growth. On Monday, the company reached 100 locations in Singapore, giving the Chinese coffee operator a larger base from which to build its presence outside its home market.

“In 2023, it became our very first home outside China, guided by our vision to build a world-class coffee brand, woven into everyone’s daily life,” said Mr. David Li, Chairman, Luckin Coffee

Since its Singapore debut in 2023, Luckin has attracted more than 1.9 million customers who have made purchases in the market. The company views Singapore as a test of whether its operating model, technology and product strategy can work beyond China.

Luckin Coffee's Middle East Plans

Luckin is also looking toward the Middle East as its next major international opportunity, building on a major turnaround and gains financial backing from Abu Dhabi sovereign wealth fund Mubadala. The potential expansion would give Luckin another growth avenue.

According to a CNBC report, David Li, Luckin’s chairman and co-founder of Centurium Capital, said the company is exploring opportunities in Gulf countries. The plans follow Mubadala and Centurium's $1 billion investment in Luckin, which supported its global expansion. 

Luckin previously targeted the Middle East and India in 2019, but those plans did not materialize. The company later faced a major accounting scandal that resulted in fabricated sales, bankruptcy proceedings in the U.S. and its removal from Nasdaq.

The potential move comes as Centurium-backed management continues to rebuild Luckin's business. The company has overtaken Starbucks as China's largest coffee chain by sales. Luckin reported second-quarter revenue of RMB 15.9 billion ($2.37 billion), representing a 28.5% increase from last year. Average monthly customers rose 23% to 112.7 million, while the company added 2,714 net stores during the quarter.

LKNCY Stock: Retail View 

On Stocktwits, retail sentiment around the stock remained in ‘bearish’ territory. 

A user said, “$LKNCY due for a big spike into the 50's”.

LKNCY stock has gained nearly 1% year-to-date. 

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