Starbucks(US:SBUX) Zhi Tong Cai Jing·2025-05-15 04:24Core Insights - Starbucks is exploring the possibility of equity transfer for its China operations, engaging with multiple private equity funds and tech companies [1] - The estimated valuation of Starbucks' China business could reach several billion dollars, although the transaction has not yet progressed to a substantive stage [1] - Starbucks faces significant challenges in China, with its latest quarterly net income of approximately $740 million, compared to local competitor Luckin Coffee's $1.2 billion [1] - The competitive landscape in China is shifting, with local brands like Luckin and Kudi Coffee leveraging low pricing strategies and digital operations [1] Industry Context - Previous industry mergers and acquisitions, such as McDonald's partnership with CITIC Capital and Yum China's split, provide a reference for Starbucks' potential local partnerships [2] - These cases illustrate how foreign dining giants are adjusting their equity structures to balance global standards with local demands [2] - The capital market has reacted to Starbucks' strategic adjustments, with a 25% decline in market value since its peak on February 28, reflecting investor concerns over slowing growth [2] - The evaluation of Starbucks' business comes at a critical time for the Chinese coffee market, and its decisions may significantly influence the competitive landscape of the industry [2]