Core Viewpoint - Starbucks is preparing to sell control of its China business, with several major investment firms, including Carlyle Group and EQT, expected to submit final bids by early October [1][4]. Group 1: Sale Process - Major investment firms, including Carlyle Group, EQT, HongShan Capital Group, and Boyu Capital, are preparing final bids for Starbucks' China business [1]. - Starbucks has requested binding bids from interested parties by early October, with a potential agreement by the end of next month [1]. - Previous reports indicated that Starbucks invited around 10 potential buyers to submit non-binding bids, with valuations for the China business reaching up to $5 billion [1]. Group 2: Control and Operations - Starbucks aims to retain control over its coffee roasting facilities in China for quality control reasons [2]. - The terms of the transaction, including the scale of equity to be sold, remain negotiable [3]. - Starbucks has stated it will maintain a significant stake in its China operations following the sale [4]. Group 3: Market Challenges - Starbucks faces declining market share in China, dropping from 34% in 2019 to 14% last year, attributed to increased local competition [4]. - In response to market challenges, Starbucks has implemented strategies such as lowering prices on certain non-coffee beverages and accelerating the launch of localized products [4]. Group 4: Financial Performance - As of June 29, Starbucks China reported a surprising same-store sales growth of 2%, compared to zero growth in the previous quarter [5]. - Under CEO Brian Niccol's leadership, Starbucks is making significant operational changes to improve sales, including menu updates and staff increases [6]. Group 5: Valuation and Analyst Sentiment - Analysts project Starbucks' price-to-earnings ratio to be around 32 times for fiscal year 2026, indicating a cautious outlook despite signs of recovery [7]. - Citigroup has lowered its target price for Starbucks from $100 to $99, maintaining a "neutral" rating due to the high costs associated with the company's turnaround efforts [7].