Starbucks to sell 60% of China operations to Boyu Capital for $4B

Starbucks said Monday it will sell a 60 percent stake in its China retail operations to Chinese investment firm Boyu Capital for 4 billion, forming a joint venture that will operate the company’s nearly 8,000 stores in the country. Under the agreement, Starbucks will retain a 40 percent interest in the joint venture and will continue to own and license the Starbucks brand and related intellectual property. The companies said they expect to finalize the transaction in the second quarter of Starbucks’ 2026 fiscal year.

The deal values Starbucks’ China business at more than 13 billion, a figure that incorporates the proceeds from the sale, the remaining 40 percent stake and anticipated royalties. Boyu will pay the 4 billion for the majority interest and the two firms will run Starbucks’ China operations through the new partnership. Starbucks’ China headquarters will remain in Shanghai.

Starbucks entered China almost 30 years ago and has been credited with helping develop a coffee market there. China is the company’s second largest market outside the United States. In recent years, however, Starbucks has faced intensifying competition from fast-growing Chinese rivals such as Luckin...