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Starbucks considers selling stake in Chinese business, Bloomberg News reports

Published 11/20/2024, 11:43 PM
Updated 11/21/2024, 12:15 AM
© Reuters. People walk past a Starbucks coffee shop in Beijing, China, May 22, 2024. REUTERS/Tingshu Wang/File Photo
SBUX
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(Reuters) -Starbucks is exploring options for its Chinese operations, including the possibility of selling a stake in the business to a local partner, Bloomberg News reported on Wednesday, citing people with knowledge of the matter.

The coffee chain has also gauged interest from prospective investors, including domestic private equity firms, the report said.

In China, the company has grappled with weak consumer spending and stiff competition from local coffee chains such as Luckin' Coffee in a weak macroeconomic environment.

Starbucks (NASDAQ:SBUX) did not immediately respond to a Reuters request for comment outside regular business hours.

© Reuters. People walk past a Starbucks coffee shop in Beijing, China, May 22, 2024. REUTERS/Tingshu Wang/File Photo

The company currently operates more than 7,500 stores in over 250 cities on the Chinese mainland, according to its website.

Comparable sales in China, the company's second-largest market after the U.S., have declined for three straight quarters, falling 14% in the fourth quarter.

 

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