Listen: Starbucks, China And Lufkin discussed on MarketFoolery
"Let's move onto luck and coffee which released its first quarterly report as a public company. Lookin' is the coffee start up in china that went public back in may they lost more money than expected. The stock is down fifteen percent. I feel like this report from can coffee is essentially a rohrschack test for like i feel like their stuff in here for bears and their stuff in here for bulls there is <hes> my first inclination in seeing that they reported was not to go to their release but rather to go to starbucks arbox is releasing earnings call <hes> from earlier in in in i mean that is really the benchmark right. I mean i like to say that. Investing is as easier as difficult as you wanna make and so for me. Starbucks is investing easy. Lufkin is probably going to be investing really really difficult and that's not really addicting necessarily on luck in <hes> it just is that starbucks is any really good position when it comes to coffee and china and i'm gonna give give you an over under here. I want you to give me your bed here. Starbucks is mention of the word china on their most recent earnings call. I'm gonna give you an over under number of fifty you over under fifty yeah. I'm gonna go under k. It was sixty three in that to me is just is one of those and i mean that is a china play that china coffee. That's what it is and that's why that's why i went to that. Starbucks called a look at that because you know you're looking at ah language management's using starbucks that china performed extremely well for the quarter store. Cam was up sixteen percent almost four thousand which is more storage than luck and starbucks is nine point one million active rewards members in china alone up thirty six percent from a year ago and they have a relationship with alibaba. That's now bringing a digital relationship consumers in china in the reason why i kicked this all out about starbucks because ultimately these are the hurdles that luck and is going to have to clear if it's going to be a compelling investment <hes> for people looking maybe for pure china exposure for someone to really take on starbucks in china. I'm not saying he can't do it. I mean let's give him some credit here where credit's due you average monthly transacting customers and a quarter for luck and we're six point two million and that was up four hundred and ten percent from the second quarter of two thousand eighteen so so they are doing the right things generating traffic and selling stuff but they had a really really strong competitor there and starbucks and i just to me. I don't see any reason reason why you would want to invest in lock in when you could just invest in starbucks i think part of the bull case is you look at how quickly this company has grown you look at the fact that luck and has nearly three thousand stores in china and they basically started two years ago but really fat and starbucks has been there for longer and has somewhere in the neighborhood of four thousand stores so i i think part of the ball cases well. Certainly the stock is"