by PENG Peng

Starbucks Corp said on Tuesday it will sell up to 60% of its China business to Boyu Capital for about US$4 billion, forming a joint venture to operate its 8,000 stores and accelerate growth in its second-largest market.

The deal, valuing Starbucks' China operations at over US$13 billion, marks the U.S. coffee giant's biggest ownership change in the country to date. Starbucks will retain a 40% stake and remain the brand owner and licensor to the new venture, which will continue to be based in Shanghai.

The partners plan to expand the network to 20,000 stores across China, underscoring their bet on long-term consumer demand despite a slower economy.

Boyu Capital, founded in 2011, invests across private equity, real estate and venture capital. Earlier this year, it acquired a 42–45% stake in Beijing luxury mall SKP, in a deal worth roughly 15 billion yuan (US$2 billion).

"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 CEO.

Boyu partner Alex Wong said Starbucks has built an iconic brand and a deep connection with Chinese consumers over the past 26 years, and the partnership brings "even greater innovation and local relevance to customers across China".

Starbucks' latest quarterly results showed global net revenue up 5.5% to US$9.6 billion, while operating income plunged 79% and net profit fell 85%. In China, revenue rose 6% to US$831 million, its fourth consecutive quarterly gain, with same-store sales up 2% and transaction volume up 9%.

Starbucks ended fiscal 2025 with 8,011 stores in 1,091 cities and counties, adding 415 during the year.

The sale follows months of talks with potential investors including Carlyle Group, EQT, and HongShan Capital. Niccol said the company would remain a significant shareholder and that it remained confident in China's long-term growth potential.

Starbucks faces intensifying competition in China from fast-growing local rivals Luckin Coffee and Cotti Coffee, which have rapidly expanded into lower-tier cities.