Xi Niu Cai Jing·2025-11-04 06:52Core Insights - Starbucks has entered a strategic partnership with Chinese alternative asset management firm Boyu Capital, marking the first time in 26 years that Starbucks has relinquished control of its business in China [1][3] - The joint venture will operate Starbucks' retail business in China, with Boyu Capital holding up to 60% equity and Starbucks retaining 40% while continuing to license its brand and intellectual property [1][3] Financial Overview - The transaction is based on an enterprise value of approximately $4 billion, excluding cash and debt, with Starbucks estimating the total value of its retail business in China to exceed $13 billion [3] - This valuation includes proceeds from the equity sale, the value of the remaining 40% stake, and expected licensing revenues over the next decade [3] Market Expansion Plans - The new joint venture will be headquartered in Shanghai and will manage the existing 8,000 stores, with plans to expand the store count to 20,000 [3] - The partnership aims to leverage local expertise to accelerate expansion into smaller cities and emerging regions in China [3] Competitive Landscape - Starbucks' performance in China is showing signs of recovery, with projected revenue of $3.105 billion for fiscal year 2025, reflecting a year-on-year increase of 5% [3] - However, the company faces significant competition from Luckin Coffee, which operates over 24,000 stores [3]