No China Crisis for Starbucks Stock (SBUX) as it Denies Full Sale Plans

Shares in coffee giant Starbucks (SBUX) perked up today after it denied that it was planning a full sale of its business in China.

Dozen Buyers

This came after a local financial magazine called Caixin claimed that Starbucks had held talks with over a dozen potential buyers.

Starbucks is understood to have kicked off a formal sale process of its China operations in May, inviting interested buyers to submit answers to a list of questions by the end of last week.

The Seattle-based company, advised by Goldman Sachs (GS), asked interested buyers about their corporate culture, management style, sustainability measures, how they treat employees, as well as the potential deal structure and business plan for Starbucks China, said the people, who declined to be named as the information was not public.

Starbucks, however, has not decided yet whether to sell a controlling or minority stake in its China business, or whether it will keep some parts of its China operations such as its supply chain.

Trouble Brewing

Starbucks is losing market share to lower-cost local rivals such as Luckin and ultra-fast home delivery services. Meanwhile, cheaper alternatives such as bubble tea and milk tea companies have drawn customers to their stores.

That’s mainly due to consumers looking for cheaper brews as China’s uncertain economic recovery continues.

That has led to the U.S. group cutting prices for the first time ever in China.

China is the coffee maker’s second-largest market after the U.S. As of March 31, 2025, Starbucks operated 7,758 stores on the mainland. The company had set a goal of opening 9,000 stores by the end of this year.

Is SBUX a Good Stock to Buy Now?

On TipRanks, SBUX has a Moderate Buy consensus based on 12 Buy and 11 Hold ratings. Its highest price target is $105. SBUX stock’s consensus price target is $93.80 implying an 1.58% upside.

See more SBUX analyst ratings