Ownership Shift and Deal Structure
Starbucks has entered a major partnership with Boyu Capital, transferring a controlling stake in its Chinese retail network in a deal valued at about $4 billion. Boyu will acquire a 60% share, while Starbucks keeps a 40% stake and continues to provide brand licensing and operational guidance. The transaction is expected to be completed in the second quarter of fiscal 2026, pending approvals from Chinese regulators.
Expansion Strategy and Market Positioning
The decision reflects Starbucks’ aim to strengthen its foothold in China, where local competitors like Luckin Coffee have been rapidly gaining market share. With around 8,000 locations already operating, the company plans to use Boyu’s regional expertise and resources to accelerate growth, particularly in smaller cities, targeting a long-term goal of 20,000 stores nationwide.
Financial Outlook and Strategic Implications
Starbucks projects that the total value of the transaction, including retained equity and licensing revenue, could exceed $13 billion over time. The shift to a joint venture model represents a strategic approach to combining local market knowledge with global brand control. Analysts view the deal as a potential blueprint for how international consumer brands can expand in China while managing competition and regulatory complexity.
