Starbucks has sold a 60 % interest in its China retail operations to private‑equity firm Boyu Capital for $4 billion, creating a joint venture that values the entire China business at more than $13 billion. The deal gives Boyu a majority stake while Starbucks retains a 40 % ownership share and the right to license its brand and intellectual property to the new entity.
Under the transaction, Starbucks will receive immediate cash proceeds and a stream of long‑term licensing fees. Boyu will support the joint venture in expanding from the current 8,000 stores toward a target of 20,000 outlets and in developing new store formats and digital capabilities tailored to Chinese consumers.
Starbucks’ China operations have faced margin compression in recent quarters. In the fourth quarter of fiscal 2025, the company’s operating margin in China fell to 2.9 % from 14.4 % in the same period a year earlier, driven by restructuring costs, inflationary pressures, and investments under the “Back to Starbucks” revitalization initiative. Competition from local players such as Luckin Coffee and Cotti Coffee has also eroded market share, with Starbucks’ share declining from 34 % in 2019 to 14 % in 2024.
The joint venture is intended to leverage Boyu Capital’s deep local market knowledge to accelerate expansion into smaller cities and new regions. By partnering with Boyu, Starbucks can focus on its core U.S. operations while still participating in China’s growth through licensing revenue and a retained equity stake.
The transaction is expected to close in the second quarter of fiscal year 2026, pending regulatory approvals.
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