3 6 Ke·2025-07-31 08:08Core Viewpoint - Starbucks China has experienced a performance rebound, with Q3 FY2025 showing an 8% year-on-year revenue growth to $790 million and a 2% increase in same-store sales, marking a significant recovery from a previous 14% decline in Q3 FY2024 [1][4]. Group 1: Same-Store Sales and Revenue Growth - Same-store sales in Starbucks China have returned to growth after four consecutive quarters of decline, with a 2% year-on-year increase in the latest quarter [2][4]. - The growth is attributed to a 6% increase in same-store transaction volume, despite a 4% decline in same-store average ticket price [5][6]. - Product innovation, integrated marketing activities, and the expansion of delivery services have been key drivers of this growth [6][8]. Group 2: Market Expansion and Store Strategy - As of Q3 FY2025, Starbucks China has a total of 7,828 stores, with a net increase of 522 stores year-on-year, including 70 new stores in the latest quarter [9][10]. - The company has focused on expanding into lower-tier cities, with 50% of new stores in FY2024 located in third-tier cities and below [10][11]. - Localized strategies, such as introducing region-specific products and culturally themed store designs, have enhanced customer engagement and sales performance in new markets [11][13]. Group 3: Capital Movements and Partnership Strategy - Starbucks China is actively seeking strategic partners, with over 20 potential partners expressing interest in acquiring a stake in the business [14][15]. - The company aims to retain a significant equity stake, potentially around 30%, while looking for partners that share its mission and can operate efficiently in the local market [14][15]. - Notable potential partners include Hillhouse Capital, KKR, and Meituan, all of which have experience in the food and beverage sector [14][15]. Group 4: Competitive Landscape and Challenges - Despite the positive financial results, Starbucks China faces challenges from a competitive market, with local brands aggressively expanding and driving prices down [17][19]. - Competitors like Luckin Coffee and others are rapidly increasing their store counts, intensifying the competition in both lower-tier and higher-tier markets [18][19]. - The company must navigate these pressures while maintaining its brand positioning and adapting to market pricing dynamics [19].