The Starbucks of China might not be so popular among investors after all.
Luckin Coffee (NASDAQ:LK) was down 6.7% in midday trade Wednesday, falling below its initial public offering price less than a week after it debuted.
Shares fell below $17, where the stock priced. Shares opened on the first day of trading at $25, but have struggled since.
The Chinese-based company began operations in October 2017 and has 2,370 stores in 28 cities across the country. It uses technology to standardize its operations, including AI and a mobile app.
Still, like most startups, it has yet to make a profit.
Luckin Coffee made $125.3 million in revenue in the year ended Dec. 31, 2018, but reported a net loss of $241.3 million.
Elsewhere in the sector, Dunkin Brands (NASDAQ:DNKN) inched down 0.2%, while Starbucks (NASDAQ:SBUX) dipped 0.3%.
