Boyu Capital to hold up to 60% interest in Starbucks retail operations in China

Core Insights - Starbucks has announced a joint venture agreement with Buoyu Capital to operate its retail business in China, with Buoyu holding up to a 60% interest and Starbucks retaining 40% [2][4] - The joint venture is based on a cash-free, debt-free enterprise value of approximately $4 billion, while Starbucks expects the total value of its China retail business to exceed $13 billion [3][4] - The finalization of the joint venture is expected in Q2 of fiscal year 2026, pending regulatory approvals [4] Company Performance - Starbucks' China business has shown signs of recovery, with same-store sales increasing by 2% and a 9% rise in customer traffic reported in the latest earnings [4][5] - The importance of the Chinese market is emphasized, often referred to as Starbucks' second home market, contributing to a 2% increase in stock price following the announcement [5] Joint Venture Details - Buoyu Capital, a leading alternative investment firm, will manage the Starbucks retail operations in China, with headquarters in Shanghai [2][6] - Starbucks will continue to own and license its brand and intellectual property to the new entity [2]