Starbucks and Boyu Announce Joint Venture for the Next Chapter of Growth in China

Core Viewpoint - Starbucks has announced a joint venture with Boyu Capital to enhance its retail operations in China, aiming for accelerated growth in one of its most significant markets globally [1][4][9] Joint Venture Structure - Boyu Capital will hold up to a 60% interest in the joint venture, while Starbucks retains a 40% interest and continues to own the Starbucks brand and intellectual property [2][3] - The joint venture is based on a cash-free, debt-free enterprise value of approximately $4 billion [2] Market Potential - Starbucks anticipates that the total value of its China retail business will exceed $13 billion, which includes proceeds from the sale of the controlling interest, the retained interest in the joint venture, and ongoing licensing revenues [3] Strategic Goals - The partnership aims to combine Starbucks' global brand and coffee expertise with Boyu's understanding of Chinese consumers to enhance customer experience and drive innovation [4][7] - The companies plan to expand from the current 8,000 Starbucks locations in China to as many as 20,000 over time [5][8] Future Outlook - The joint venture is expected to be finalized in Q2 FY2026, pending regulatory approvals [9]