Starbucks sells 60% stake in Chinese arm to Boyu Capital
By Benjamin Chiou
Date: Tuesday 04 Nov 2025
(Sharecast News) - Coffee giant Starbucks has announced that it is selling a majority stake of its Chinese operations to investment firm Boyu Capital in a deal worth $4bn.
Boyu will now operate Starbucks retail in China, buying up to a 60% interest, though the remaining 40% will be retained as the Seattle-based company continues to own and license the Starbucks brand and intellectual property.
The Boyu partnership marks a "significant milestone" and "underscores its commitment to accelerating long-term growth" in one of its most important and fastest-growing markets, the company said.
Starbucks, which has operated in China for 26 years and has more than 8,000 stores, said expects to grow to 20,000 locations "over time".
The China retail business is now valued at more than $13bn, comprising proceeds from the 60% stake sale, the value of Starbucks' retained interest, and the net present value of ongoing licensing economics payable over the next 10 years or so.
However, the deal comes after a marked decline in the chain's market share across China, which dropped to just 14% in 2024 from 34% in 2019, according to Euromonitor data, amid heightened competition from lower-priced rivals like Luckin.
"Boyu's deep local knowledge and expertise will help accelerate our growth in China, especially as we expand into smaller cities and new regions," said Brian Niccol, Starbucks chairman and chief executive officer.
"We've found a partner who shares our commitment to a great partner experience and world-class customer service. Together we will write the next chapter of Starbucks storied history in China."
The deal is expected to complete in the second quarter of the current financial year through to September 2026.
Starbucks futures were down 0.4% at $80.68 in pre-market trading in New York.
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