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France 24
09-07-2025
- Business
- France 24
Starbucks receives bids for stake in China business: US media
The coffee chain's China business, its second biggest after its US operation, drew non-binding offers from a mix of Chinese and foreign private equity firms valuing the enterprise at between $5 and $10 billion, CNBC reported, citing three people familiar with the matter. Under one possible outcome, Starbucks could retain a 30 percent stake with a group of buyers each holding less than this share, CNBC said. A note from TD Cowen said a valuation of between $2.6 billion and $4.7 billion is "more realistic" than one as potentially as high as $10 billion. Starbucks declined to comment directly on any offers received but said it would not exit China. "We are looking for a strategic partner with like-minded values, who shares our vision to provide a premium coffeehouse experience," a Starbucks spokesperson said. "We remain committed to China and want to retain a meaningful stake in the business. Any deal must make sense for Starbucks business and partners." The bidders include Centurium Capital, Hillhouse Capital and US private equity firms Carlyle Group and KKR, CNBC reported. As of the end of March, Starbucks had around 7,700 cafes in more than 250 cities in China, employing more than 60,000 people. Only the United Staets, with more than 17,000 cafes is bigger for the chain. Starbucks has been in turnaround mode, naming former Chipotle CEO Brian Niccol as CEO in August 2024 after the short tenure of Laxman Narasimhan failed to reignite growth. In its most recent quarter ending March 30, Starbucks had flat revenues in China compared with the year-ago period, with the number of transactions rising four percent but the average ticket falling four percent. In a conference call in late April, Niccol told analysts that Starbuck's China sales had benefited during the period from adding new sugar-free beverages and introducing options at different price points. Shares of Starbucks fell 0.2 percent in afternoon trading.
Yahoo
09-07-2025
- Business
- Yahoo
Starbucks (SBUX) Stock Trades Up, Here Is Why
Shares of coffeehouse chain Starbucks (NASDAQ:SBUX) jumped 3.1% in the pre market session after the company received strong interest for a stake in its China business, with bids valuing the unit at up to $10 billion. The coffee giant is reportedly evaluating non-binding offers from nearly 30 private equity firms, including both international and domestic players like Centurium Capital, Hillhouse Capital, The Carlyle Group, and KKR & Co. This strategic review comes as Starbucks faces intense competition in the crucial Chinese market. While no final decision has been made, reports suggest Starbucks aims to retain a significant stake of around 30% in the unit, seeking a strategic partner to help navigate the competitive landscape and drive long-term growth. Investors are reacting positively to the news, as a potential deal at such a high valuation could unlock significant value for shareholders and validate the long-term potential the company sees in its China operations. After the initial pop the shares cooled down to $95.11, up 0.2% from previous close. Is now the time to buy Starbucks? Access our full analysis report here, it's free. Starbucks's shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today's move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business. Starbucks is up 3.2% since the beginning of the year, but at $95.11 per share, it is still trading 17.9% below its 52-week high of $115.81 from February 2025. Investors who bought $1,000 worth of Starbucks's shares 5 years ago would now be looking at an investment worth $1,293. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
09-07-2025
- Business
- Reuters
Starbucks China attracts bids at up to $10 billion valuation, CNBC reports
July 9 (Reuters) - Starbucks' (SBUX.O), opens new tab China business has attracted offers for a potential stake sale, valuing the coffee chain unit at up to $10 billion, CNBC reported on Wednesday, citing people familiar with the matter. Asia-based private equity firms Centurium Capital and Hillhouse Capital as well as U.S. peers Carlyle Group (CG.O), opens new tab and KKR & Co (KKR.N), opens new tab are among the contenders vying for a stake in Starbucks' China business, the report added. There is a possibility of Starbucks retaining a 30% stake, with the rest split among a group of buyers, each holding less than 30%, the CNBC report said. Starbucks, Centurium, Hillhouse, Carlyle and KKR did not immediately respond to Reuters requests for comment. Reuters could not immediately verify the report. Starbucks said last month that it is not currently considering a full sale of its China operations, after the coffee maker kicked off a formal sale process of its China operations in May. Almost 30 domestic and foreign private equity firms in China have submitted non-binding offers and Starbucks is in the process of evaluating the offers, deal structure proposals and value creation pitches from the bidders, the report said. The bidders could be shortlisted within two months, but the entire deal is unlikely to be completed by the end of this year, CNBC said.
Yahoo
09-07-2025
- Business
- Yahoo
Starbucks China attracts bids at up to $10 billion valuation, CNBC reports
(Reuters) -Starbucks' China business has attracted offers for a potential stake sale, valuing the coffee chain at up to $10 billion, CNBC reported on Wednesday, citing people familiar with the matter. Centurium Capital, Hillhouse Capital and U.S. private equity firms Carlyle Group and KKR & Co are among the contenders vying for a stake in Starbucks' China business, the report added. Reuters could not immediately verify the report.
