=Luckin Coffee (LK) reported earnings on Wed 14 Aug 2019 (b/o)

Luckin Coffee (LK), a quick-serve coffee chain rivaling Starbucks (SBUX) in China, reported mixed second-quarter earnings on Wednesday — its first quarterly report since its May IPO.

Estimates: An per-share loss of 44 cents on sales of $131 million, according to Zacks Investment Research.

Results: Luckin Coffee lost 48 cents a share adjusted on $132.43 million. That beat Zacks estimates on Luckin Coffee earnings while missing on sales, but other consensus forecasts had Luckin missing on its per-share loss but topping on sales.

Luckin IPO Breakout Fails
Shares fell 2.4% to 23.95 in the stock market today. Weak China economic data, including for retail sales, could also be weighing on Luckin Coffee stock. Starbucks edged lower early Wednesday.

Luckin Coffee stock broke out of a consolidation last month, but the breakout failed.

Shares surged during the first day of trading of the Luckin Coffee IPO, then dipped, then rebounded.

The coffee chain, which had 2,963 stores at the end of the quarter in 40 cities in China, up from 624 stores a year earlier, but losing money in the process. As of March 31, the chain had 2,370 stores, most of which are light on seating and smaller than a typical coffee shop. Luckin Coffee often plugs those stores into areas like campuses and office buildings.

Meanwhile, Starbucks had 3,922 stores in China at the end of its fiscal third quarter. Same-store sales in China rose 6% during the period.