October 31, 2025 – During yesterday’s earnings call, Brian Niccol, Chairman and CEO of Starbucks, addressed the progress regarding the potential sale of equity in its Chinese business, a topic that has drawn significant market attention.
Niccol stated, “We’ve received strong interest from multiple high-quality partners who recognize the immense value of the Starbucks brand and our team in China. We anticipate retaining a substantial stake in Starbucks China and remain confident in the region’s long-term growth potential.”
Cathy Smith, Executive Vice President and Chief Financial Officer of Starbucks, further elaborated that the company is still focused on identifying the right partner to help unlock its future growth potential in China. “The value Starbucks brings to a potential deal includes three key aspects: upfront investment from our future partner, our continued significant equity stake in the Chinese business, and future royalty payments,” she explained.
It’s worth noting that rumors about Starbucks considering selling equity in its Chinese operations first emerged in the latter half of last year. In response, a Starbucks spokesperson in November last year emphasized the company’s commitment to developing its business in China and maintaining partnerships. They were exploring the best path forward, including strategic partnerships. In September this year, reports surfaced that Starbucks had shortlisted Boyu Capital, Carlyle Group, EQT, and Sequoia China as final candidates for the potential sale.
According to Starbucks’ financial results for the fourth quarter and full fiscal year 2025 released yesterday, the company reported total net revenue of 9.569billionforthefourthquarter,up5.5278 million, and net profit attributable to the company dropped 85.4% year-on-year to $133 million.
In the Chinese market, Starbucks China continued its growth trajectory. In the fourth quarter, it generated revenue of 831.6million,a63.105 billion, up 5% year-on-year.
During the same quarter, same-store sales in Starbucks China rose 2% year-on-year, marking two consecutive quarters of growth. Same-store transaction volume increased by 9% year-on-year. The store operating profit margin remained in double digits, with operating profit and margin improving sequentially for four consecutive quarters. As of the end of fiscal year 2025, Starbucks China had 8,011 stores, covering 1,091 county-level markets. In the fourth quarter of fiscal year 2025, it opened 83 new stores and entered 47 new county-level markets. For the full fiscal year, it opened 415 new stores.
