Luckin Coffee and Dutch Bros growing rapidly, pose potential threat to Starbucks

From Nasdaq: 2025-06-18 07:09:00

Starbucks Corp. dominates the coffee industry with nearly 30% market share, far ahead of McDonald’s at under 21%. Luckin Coffee and Dutch Bros hold 3.8% and 1.1% respectively. Both companies are growing rapidly and pose a potential threat to Starbucks.

Luckin Coffee aggressively expands in China and the US, outpacing Starbucks’ growth. It signed a $1 billion deal to purchase coffee beans from Brazilian partners. Despite challenges, Luckin’s rapid growth and market dominance are closely monitored by Starbucks.

Dutch Bros, a drive-through coffee chain, has doubled its locations since going public in 2021. It reported a 29% increase in net revenue and a 39% surge in net income in the first quarter of the year. Analysts are bullish on BROS shares but note the company’s high P/E ratio and challenges in expansion.



Read more at Nasdaq:: Can Luckin and Dutch Bros Take Market Share From Starbucks?