Starbucks(US:SBUX) Nan Fang Du Shi Bao·2025-06-24 08:19Core Viewpoint - Starbucks China is exploring options for its business, including a potential sale, with an estimated valuation of $5 billion to $6 billion, while emphasizing its commitment to growth in the Chinese market [2][3]. Group 1: Business Sale Exploration - Starbucks China held a meeting with nearly 20 investment institutions, including Hillhouse Capital and Carlyle Group, to discuss the potential sale of its business [2]. - The company is currently evaluating the best ways to capture future growth opportunities and has confirmed that it is not considering a complete sale of its Chinese operations [2]. - Previous reports indicated that Starbucks has been exploring various options for its Chinese business since last year, including the possibility of selling a stake and seeking local partners [3]. Group 2: Financial Performance - For the fiscal year 2024, Starbucks China reported revenues of $2.968 billion, approximately 21.544 billion RMB, a decrease of 6.13% compared to the previous year [4]. - In the first quarter of fiscal year 2025, revenues increased by 1.22% to $744 million, while same-store sales declined by 6% [4]. - The second quarter of fiscal year 2025 saw a revenue increase of 4.80% to $740 million, with same-store sales remaining flat despite a 4% increase in transaction volume [4]. Group 3: Pricing Strategy and Market Position - In June, Starbucks China announced a focus on non-coffee beverages and initiated a price reduction across several drink categories, marking the first official price cut in 25 years [5]. - The average price reduction for drinks is approximately 5 RMB, with the lowest price for a single drink set at 23 RMB [5]. - Since 2023, Starbucks China has experienced continuous price reductions for 10 consecutive fiscal quarters, with average customer spending decreasing by 9%, 8%, 7%, and 8% in the first to fourth quarters of fiscal year 2024 [5].