Starbucks Selling Up to 60% Stake in China

Starbucks agreed to sell up to a 60% stake in its China retail operations to private equity firm Boyu Capital in a joint venture valued at about $4 billion, while retaining a 40% interest and continuing to own and license the Starbucks brand and intellectual property. The deal covers nearly 8,000 stores and the business will remain headquartered in Shanghai, with ambitions to grow the store count to as many as 20,000 locations and expand into smaller cities. Starbucks said the combined proceeds, retained stake and expected licensing fees could push the total value of its China retail business above $13 billion over the next decade. CEO Brian Niccol described the partnership as pairing Starbucks’ brand, coffee expertise and partner culture with Boyu’s local market knowledge to accelerate growth amid stiffer competition, and Starbucks reported a recent 2% same‑store sales gain but a weaker average ticket. The announcement drove a positive market reaction with shares rising in after‑hours trading, and the deal is expected to close in the second quarter of fiscal 2026 pending regulatory approvals.