Starbucks(US:SBUX) 21世纪经济报道·2025-10-31 09:14Core Viewpoint - Starbucks China is increasingly seen as a promising investment target, with significant growth potential and strategic changes underway [1][4]. Financial Performance - In Q4 of FY2025, Starbucks China reported a revenue increase of 6% year-on-year to $831.6 million (approximately RMB 5.913 billion) [1]. - For the entire FY2025, revenue grew by 5% to $3.105 billion (approximately RMB 22.077 billion) [1]. - The operating profit margin for Starbucks China remains in double digits, with operating profit and margin improving for four consecutive quarters [1]. Growth Strategies - The core driver of growth in Starbucks China is price adjustments, with significant price reductions on key products starting June 10 [6]. - Promotions and product innovations, particularly in the tea latte series, have contributed to sales growth [6]. - The launch of limited-time products during seasonal events has led to record daily sales [6]. - The delivery service "Zhuan Xing Song" has achieved historical highs in sales across various time frames [6]. Market Position and Competition - Same-store sales increased by 2% year-on-year, with transaction volume up by 9%, although average transaction value declined by 7% [7]. - Starbucks has opened 8,011 stores across 1,091 county-level cities, maintaining high profitability for new stores [7]. - The competitive landscape is intensifying, with Luckin Coffee reporting a 47.1% revenue increase and expanding its store count significantly [11][12]. Strategic Partnerships and Future Outlook - Starbucks is in the process of selling a stake in its China operations, with potential valuations exceeding $4 billion, and possibly over $10 billion when including franchise fees [8][9]. - The company aims to retain a significant portion of its stake in the Chinese market while seeking strategic partners [9]. - The cultural and operational identity of Starbucks may be challenged as it seeks to adapt to the local market [12].