Starbucks sells 60% of its China business to Boyu Capital

Starbucks announced Monday that it will form a $4 billion joint venture with Boyu Capital, giving Boyu a 60% stake in its retail operations in China. The US coffee chain will retain 40% and own and license its brand.

The deal values Starbucks’ China business at over $13 billion, including its remaining stake and royalties.

China is Starbucks’ second-largest market after the US, and has around 8,000 stores. 

However, the company has struggled in recent years due to competition from cheaper local rivals like Luckin Coffee, leading to consecutive sales declines.

Starbucks CEO Brian Niccol said Boyu’s deep local expertise will help the company expand into smaller Chinese cities and reach its long-term goal of 20,000 stores.

Starbucks’ China headquarters will remain in Shanghai, and the deal is expected to close in the second quarter of its 2026 fiscal year. Starbucks shares remained flat after hours.