The coffee giant is back on the offensive: Propelled by the sale of a majority stake to Boyu Capital, Starbucks China increased its Q1 revenue by 11% to $823.4 million.
Details
Comparable store sales in China jumped by 7%. This increase was driven by 5% transaction growth and a 2% increase in the average ticket.
Also: By the end of 2025, Starbucks hit the milestone of 8,011 stores in China.
The 4-Billion-Dollar Deal
Starbucks is currently finalizing the sale of a 60% stake in its China division to private equity firm Boyu Capital.
The partnership's long-term goal is ambitious: Nearly half of all new stores outside North America are slated to open in China in 2026.
Good to know: Who is Boyu Capital?
Founded in 2011, the PE firm counts Alvin Jiang, grandson of former President Jiang Zemin, among its founders.
According to CFO Cathy Smith, the partnership is expected to enable an operating margin of over 20% in the international business.
The competition is not resting: Despite this success, pressure remains massive.
Local heavyweight Luckin Coffee now operates over 29,000 stores and generates approximately $2.2 billion in quarterly revenue—significantly more than Starbucks China.
Starbucks is therefore increasingly positioning itself as the "premium choice" against its low-cost competitors.
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