Starbucks sells China majority to Boyu Capital

Starbucks will sell a majority stake in its 8,000-store China business to Boyu Capital, creating a $4bn joint venture in which Boyu holds up to 60% and Starbucks keeps 40% while licensing its brand. The company values the overall China retail operation at more than $13bn and plans to expand to as many as 20,000 stores, even as competition and a slower economy have weighed on growth. Recent trends have steadied: comparable sales rose 2% in the September quarter, with transactions up 9% but average spend down 7%.

Reviewed by JQJO team

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