Di Yi Cai Jing·2025-11-04 01:37Core Viewpoint - Starbucks has announced a strategic partnership with Chinese alternative asset management firm Boyu Capital to establish a joint venture for its retail operations in China, indicating a significant shift in its business strategy in the region [1][2]. Group 1: Joint Venture Details - The joint venture will see Boyu holding up to 60% equity, while Starbucks retains 40% and continues to own and license its brand and intellectual property to the new entity [1]. - The enterprise value of the joint venture is approximately $4 billion, excluding cash and debt, with Boyu acquiring corresponding equity [1]. - Starbucks anticipates that the total value of its retail business in China will exceed $13 billion, which includes the value from the equity transfer to Boyu, retained equity in the joint venture, and ongoing licensing revenue over the next decade or longer [1]. Group 2: Market Context and Strategic Moves - Rumors about Starbucks potentially selling its China operations have circulated for some time, with a valuation of $5 to $6 billion reported in June 2024 [2]. - The company is actively seeking strategic partners that share its vision and values, evaluating over 20 interested institutions while aiming to retain a significant portion of its equity in the Chinese market [3]. - In response to intense competition in China, Starbucks has implemented various strategies, including price reductions on non-coffee products and expanding its presence in lower-tier markets [3]. Group 3: Store Expansion and Performance - In the fourth quarter, Starbucks opened 183 new stores in China, entering 47 county-level markets, with a total of 415 net new stores projected for the fiscal year 2025 [4]. - By the end of fiscal year 2025, Starbucks will have opened 8,011 stores across 1,091 county-level cities, with new stores maintaining a high level of profitability and contributing above-average same-store sales [4].