Starbucks' $1 Billion China Shake-Up? Major Deal Talks Brewing Behind the Scenes

Khac Phu Nguyen

Thu, May 15, 2025, 12:48 PM 2 min read

Starbucks (NASDAQ:SBUX) is making quiescent moves down the scenesand they could reshape its aboriginal successful China. The institution has reached retired to backstage equity firms, tech giants, and different strategical players to trial involvement successful its China business, according to radical acquainted with the talks. While nothing's locked in, insiders accidental a partial involvement merchantability is connected the table, perchance valuing the concern successful the billions. Conversations are inactive early, but investors are expected to nonstop successful feedback soon. The institution hasn't committed to immoderate woody conscionable yetbut erstwhile a planetary marque starts taking meetings similar this, you cognize the playbook is shifting.

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This comes arsenic Starbucks faces aggravated unit successful what utilized to beryllium 1 of its brightest maturation stories. China is inactive its second-largest market, but section champions similar Luckin Coffee and Cotti Coffee are moving fastand grabbing wallets. Luckin raked successful $1.2 cardinal successful gross past quarter, outpacing Starbucks' $740 cardinal haul successful the aforesaid region. With much than 7,750 stores crossed China and a 25% banal driblet since February, Starbucks is nether the weapon to beryllium it inactive has country to runand that whitethorn necessitate caller capital, caller partners, oregon both.

CEO Brian Niccol has hinted astatine semipermanent optimism, saying the institution remains committed to China and sees plentifulness of runway ahead. He's besides floated the thought of partnerships beforethough without overmuch detail. If Starbucks pulls the trigger connected a involvement sale, it would beryllium pursuing a well-trodden path. McDonald's (NYSE:MCD) and Yum! Brands (NYSE:YUM) some spun disconnected their China operations successful years past to pat section expertise and user trends. Investors present person a front-row spot arsenic Starbucks weighs whether it wants to spell soloor squad up to triumph successful 1 of the toughest java battlegrounds connected the planet.

This nonfiction archetypal appeared connected GuruFocus.