Starbucks shortlists five candidates for China stake sale

Core Insights - Starbucks has finalized Carlyle Group, EQT, HongShan Capital Group, Boyu Capital, and Primavera Capital as bidders for its China stake sale, with final offers expected soon [1][2][3] - The company aims to complete the agreement by the end of October 2025, with the China business valued at approximately $5 billion [2][3] - Starbucks plans to retain control of its coffee bean roasting facility in China for quality control, despite divesting control of its operations [2][3] Financial Performance - Starbucks reported strong sales growth in international markets and a third consecutive quarter of revenue growth in China [3] - Comparable-store sales in China increased by 2% in the quarter ending June 29, 2025, recovering from zero growth in the previous quarter [4] Competitive Landscape - The stake sale is a response to declining market share in China, where local brands are increasing competition [3] - To combat competitive pressures, Starbucks has implemented strategies such as lowering prices on select non-coffee beverages and accelerating the introduction of locally tailored products [4]