Starbucks sells 60% of China unit to Boyu Capital for $4B, keeping brand control and aiming for 20K stores.

Starbucks is selling a 60% stake in its China operations to Chinese investment firm Boyu Capital for $4 billion, forming a joint venture to accelerate growth in the competitive market. Starbucks will retain a 40% stake, continue owning the brand and intellectual property, and keep its China headquarters in Shanghai. The deal, expected to close in the second quarter of 2026, aims to expand the store count from 8,000 to over 20,000, particularly in smaller cities, leveraging Boyu’s local expertise. The move follows declining same-store sales and market share amid rising competition from local chains like Luckin Coffee. The total value of Starbucks’ China business is projected to exceed $13 billion.