Core Points - Starbucks Workers United announced a nationwide strike starting from 65 stores, aiming to be the largest and longest strike in Starbucks history [1] - The strike coincides with Starbucks' "Red Cup Day," a busy promotional event for the company [1] - A Starbucks spokesperson stated that the strike has had minimal impact so far, affecting less than 1% of stores [1] Financial and Operational Context - In April, the union voted against a proposal for a guaranteed annual raise of at least 2%, citing that it did not address healthcare and other economic benefits, nor did it provide immediate raises [1] - In September, Starbucks announced plans to close hundreds of stores in the U.S. and Canada, resulting in approximately 900 layoffs [1] - The latest plan indicates a 1% reduction in the total number of Starbucks stores in the U.S. and Canada [1]

Core Insights - Starbucks is considering selling its business in China, with ongoing rumors about potential transactions [1][2] - The company reported a 5% year-over-year increase in Q4 revenue, reaching $9.6 billion, marking the first positive same-store sales growth in seven quarters [1] - Starbucks China achieved $831.6 million in revenue for Q4, a 6% increase year-over-year, contributing to an annual revenue of $3.105 billion, up 5% [1] Financial Performance - For the fiscal year ending September 2025, Starbucks reported total revenue of $37.2 billion, a 3% increase from the previous year [1] - The company closed 107 stores in Q4, bringing the total number of stores to 40,990 [1] China Market Strategy - Starbucks continues to expand in the Chinese market, opening 183 new stores in Q4 and entering 47 new county-level markets [1] - The total number of stores in county-level cities reached 8,011 by the end of the fiscal year, with a net addition of 415 stores for the year [1] - New stores are performing well, contributing above-average same-store sales growth [1] Potential Transaction Insights - Starbucks' Chairman and CEO expressed confidence in retaining significant equity in Starbucks China while exploring partnerships to unlock future growth potential [2] - The estimated valuation for Starbucks' China business is between $5 billion and $6 billion, with potential deals expected to extend into 2026 [2] - High-quality partners have shown interest in the brand, indicating a strong perceived value in Starbucks' operations in China [2]

Core Insights - Starbucks has received multiple acquisition proposals from potential investors for its China operations, with most investors seeking to gain controlling stakes in the business [1] Group 1 - Several potential investors have shown interest in acquiring Starbucks' China business [1] - The majority of these investors are looking for controlling interests in the operations [1]