US EditionStarbucks Denies Full China Exit Amid Stake Sale Talks As Market Share Slips To 14% - KKR (NYSE:KKR), Starbucks (NASDAQ:SBUX)
CHINA, JUN 23 – Starbucks values its China unit at $5 billion to $6 billion as local chains like Luckin Coffee expand aggressively and consumer preferences shift toward tea-based drinks, Euromonitor data shows.
- 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.
16 Articles
16 Articles
Starbucks denies plans of full China sale as business stalls
Starbucks said it’s not currently considering a full sale of its China business, disputing a report from Caixin Global that had sent the shares higher in late trading, as the coffee giant battles cheaper local rivals in its second-biggest market.
Starbucks denies reports it plans to fully exit China · TechNode
Starbucks has responded to rumours of a potential stake sale in its China operations after reports resurfaced that the American coffee giant is looking for buyers for its business in the country. “We see significant long-term potential in the market and are evaluating the best ways to capture the future growth opportunities,” the company said in an official statement. The comment comes after a report in Chinese media outlet Caixin that Hillhouse…
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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