Shares of Luckin Coffee Inc. Surged before Tuesday’s opening bell after the company reported quarterly earnings of $0.89 per share, beating consensus estimates of $0.83 by $0.06.

The stock opened at $32.90 following a previous close of $31.20, eventually changing hands at $33.20 with 781,481 shares traded, which lifted the beverage chain’s market capitalization to $9.52 billion.

The China-based chain posted a net margin of 6.78 percent for the quarter alongside a return on equity of 24.91 percent. The company trades at a price-to-earnings multiple of 19.76, with a price-to-earnings-growth ratio of 0.46 and a beta of -0.34.

Its 50-day simple moving average sits at $33.68, hovering slightly above its 200-day simple moving average of $33.47. Investors reacted by driving an immediate morning price gap, reflecting operational resilience in a competitive mainland drinks market where rivals continue to slash prices on freshly brewed coffee.

Founded in 2017, Luckin Coffee built its footprint around small-format pickup booths and app-driven orders. Customers buy freshly prepared coffee, tea drinks, fruit juices and packaged light snacks almost exclusively through mobile software rather than traditional seated cafe counters.

Fulfillment relies on a dual setup of self-operated flagship sites and franchised partner locations that keep overhead costs low. By sidestepping large floorplans and prime street-level seating, the chain protects unit profitability even when competing beverage chains launch aggressive discount coupons.

Wall Street research desks hold divided stances on the stock’s runway. 00 per share.

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