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Starbucks plans to maintain a substantial ownership stake in its China operations, which experienced higher-than-average growth during the last fiscal year. The company remains optimistic about the long-term potential of the region while evaluating potential investors, according to its chairman.
In fiscal year 2025, Starbucks China saw a 5% increase in revenue, surpassing the company’s global growth figures, as announced yesterday. During the earnings call, the CEO stated that the company has attracted significant interest from several high-quality potential partners interested in acquiring a stake in Starbucks China. He emphasized that Starbucks intends to keep a major ownership share and believes in the long-term prospects of the market.
Media reports earlier this year suggested that Hillhouse Capital participated in a reverse management roadshow for Starbucks China, with the ultimate deal structure still pending. The unit was estimated to be valued between $5 billion and $6 billion, with the process expected to continue into 2026. Later reports indicated that the valuation could be as high as $10 billion.
The CFO explained that the company is still looking for the right partner. She noted that any potential deal would involve three key elements: an initial investment from the new partner, the company’s retained equity, and future royalty payments.
Yesterday, Starbucks reported its fiscal 2025 fourth-quarter results, covering the period ending September 29. Quarterly revenue was $9.6 billion, a 5% increase from the previous year, while annual revenue grew by 3% to $37.2 billion.
In the fourth quarter, Starbucks China generated $830 million in revenue, a 6% year-over-year increase, marking its fourth straight quarter of growth. For the full year, China’s revenue reached $3.1 billion, up 5% from the prior year.
The company continues to grow in lower-tier cities across China. During the fourth quarter, it opened 183 new stores, expanding into 47 additional county-level markets. Over the entire fiscal year, a total of 415 new stores were opened.
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