Luckin Coffee’s value drops as virus forces store closings

Bloomberg

Luckin Coffee Inc, the Chinese challenger to Starbucks Corp, has lost nearly a third of its value since the outbreak of the coronavirus. However, at least one analyst maintains this may be just a blip for the company.
The upstart has closed all of its coffee shops in Wuhan, the capital of the Hubei province and the epicenter of the deadly virus outbreak, a spokesperson said, without providing the number of stores there. Analysts have noted that Luckin has said the financial impact has not been significant so far, given the timing of the outbreak occurring during the Chinese New Year period.
“The company will recover quickly after the outbreak of the virus subsides,” KeyBanc analyst Eric Gonzalez said.