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Starbucks Denies Full China Exit Amid Stake Sale Talks As Market Share Slips To 14% - KKR (NYSE:KKR), Starbucks (NASDAQ:SBUX)

  • On Tuesday, Starbucks, the Seattle-based coffee company, denied reports that it is planning to fully divest its operations in China amid discussions about selling a stake.
  • This denial followed media reports and a formal sale process started in May, triggered by Starbucks' market share dropping sharply from 34% in 2019 to 14% in 2024.
  • Starbucks recently implemented its first price reduction in China by lowering the cost of certain iced beverages without coffee by about 5 yuan, and held a management roadshow with participation from more than 20 institutions to discuss topics including corporate governance and sustainability efforts.
  • The company’s China division is estimated to be worth between $5 billion and $6 billion, while shares closed at $92.34 after dropping almost 20% from their March high. Meanwhile, TD Cowen analyst Andrew Charles has assigned a Hold rating and set a price target of $90.
  • Starbucks continues to see long-term potential in China and is evaluating ways to capture growth despite facing increased competition from lower-priced local brands.
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Starbucks, the famous U.S. coffee chain, recently clarified its intentions regarding its presence in the Asian giant. According to the original report, the company has stated that it is not considering a full sale of its operations in China at the moment.This statement comes amid rumors about possible strategic changes in the country.Caixin's report and its implicationsThe Chinese financial magazine Caixin issued a report that ignited speculatio…

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YUAN TALKS broke the news in on Monday, June 23, 2025.
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