Core Insights - Starbucks is expected to undergo significant changes by 2026, particularly in its China operations and overall business strategy [1] Business Progress - The joint venture with Boyu Capital is anticipated to complete by spring 2026, transitioning Starbucks' China retail operations (involving 8,011 stores) to a franchising model, which will no longer be included in consolidated financial statements [2] - The company plans to add 600-650 net new stores globally in fiscal year 2026, with nearly half of these in the Chinese market, aiming to gradually achieve an annual increase of over 1,000 stores, focusing on lower-tier cities [2] - A store upgrade plan is in progress, with over 1,000 store renovations expected to be completed by the end of fiscal year 2026 [2] Financial Performance - For the first quarter of fiscal year 2026 (ending December 28, 2025), management anticipates an improvement in profit margins in the second half of the fiscal year, primarily due to a cost reduction plan targeting approximately $2 billion in savings over the next two years and supply chain optimization [3] - Global same-store sales are projected to grow by 3% or more in fiscal year 2026 [3] Recent Events - A Seattle court ruled in November 2025 that Starbucks must face a shareholder lawsuit alleging the company concealed information about declining sales in 2024; subsequent legal proceedings may impact the company's reputation and stock price [4]