SBUX Stock: Starbucks Corporation (NASDAQ: SBUX) surged 4.22% in Wednesday trading, closing at $95.28, following comments from CEO Brian Niccol that the company has received “a lot of interest” from potential investors in its China business. The announcement comes as the global coffee giant considers selling a minority stake in its Chinese operations to reinvigorate growth in a challenging market.
Niccol told the Financial Times that a wide range of potential partners — including global private equity firms and strategic investors — have expressed interest in backing Starbucks’ future in China. The move is part of a broader strategy to expand the chain from its current 7,758 stores in the country to a targeted 20,000.
Starbucks entered the Chinese market in 1999, and it has since become the company’s second-largest market. However, revenue in the region has dipped from a high of $3.7 billion in 2021 to $3 billion in 2024, prompting the company to reconsider its pricing and product strategy amid intensifying competition from fast-growing domestic brands like Luckin Coffee and Cotti Coffee.
This week, Starbucks rolled out price cuts averaging 70 cents across 20 of its iced and tea-based drinks, aiming to compete more aggressively in China’s rapidly expanding non-coffee market. The company’s leadership also gathered 14,000 employees for a three-day conference in Las Vegas, signaling a renewed focus on innovation and international growth.
Despite the China challenges, investor sentiment turned bullish on the stock following the CEO’s remarks. With Starbucks showing signs of flexibility in pursuing a partnership while retaining a significant stake, analysts see this as a potentially transformative opportunity for the company’s long-term presence in Asia.
Goldman Sachs is reportedly advising Starbucks on the deal, though no timeline has been announced for a final decision. CEO Niccol emphasized that the company is in no rush and will move carefully through the evaluation process.
With shares rebounding from recent lows and Wall Street watching China developments closely, Starbucks’ evolving global strategy may serve as a key growth lever in the second half of 2025.