Starbucks Forms Joint Venture to Expand China Stores from 8,000 to 20,000
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: Fool
- Market Challenge Response: Under CEO Brian Niccol's leadership, Starbucks is executing the 'Back to Starbucks' initiative, focusing on enhancing in-store experiences through labor and technology investments, with Q4 FY2025 same-store sales growth of only 1% marking the end of six consecutive quarters of declining sales.
- Brand Value Reinvention: With 34 million active members in the U.S., Starbucks maintains an unmatched position in the market despite recent sales struggles, and management will focus on the brand's market position in 2026 to enhance customer loyalty and sales capabilities.
- New Strategy in China: Starbucks announced the sale of a 60% stake in its Chinese retail operations to a private equity firm, forming a joint venture aimed at enhancing customer experience through beverage innovation and digital platforms, with plans to expand store count from 8,000 to 20,000, expected to close by the end of March.
- Future Growth Potential: By partnering with a private equity firm, Starbucks aims to accelerate expansion in the Chinese market to meet the rising middle-class consumption demand, thereby maintaining its competitive edge in a fiercely competitive landscape.
SBUX
$84.57+Infinity%1D
Analyst Views on SBUX
Wall Street analysts forecast SBUX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SBUX is 95.00 USD with a low forecast of 59.00 USD and a high forecast of 115.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
21 Analyst Rating
12 Buy
7 Hold
2 Sell
Moderate Buy
Current: 83.860
Low
59.00
Averages
95.00
High
115.00
Current: 83.860
Low
59.00
Averages
95.00
High
115.00
About SBUX
Starbucks Corporations is a roaster, marketer, and retailer of specialty coffee globally. Its North America segment includes the United States and Canada. Its International segment includes China, Japan, Asia Pacific, Europe, Middle East and Africa, Latin America, and the Caribbean. Its North America and International segments include both Company-operated and licensed stores. The Channel Development segment includes roasted whole bean and ground coffees, Starbucks-branded single-serve products, a variety of ready-to-drink beverages, such as Frappuccino and Starbucks Doubleshot, foodservice products, and other branded products sold outside the Company-operated and licensed stores. A large portion of its Channel Development business operates under a licensed model of the Global Coffee Alliance with Nestle, while its global ready-to-drink businesses operate under collaborative relationships with PepsiCo, Inc., Tingyi-Ashi Beverages Holding Co., Ltd., Arla Foods amba, Nestle, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
