Starbucks has reportedly started early talks with advisers about potential deals involving its Japan business.
- Starbucks’ options include a potential stake sale valued at $2.5 billion–$3.1 billion.
- Earlier this year, the company agreed to sell a 60% stake in its China retail business to Boyu Capital in a deal valuing the operation at $4 billion.
- At the Evercore Consumer & Retail Conference, CEO Brian Niccol said Starbucks sees significant growth opportunities abroad.
Starbucks (SBUX) stock extended its rally overnight as the company reportedly evaluates strategic alternatives for its Japan operations, including a potential partial divestment or public listing.
The update comes as the coffee giant simultaneously pursues an ambitious long-term expansion strategy across the United States and overseas markets.
SBUX Reviews Strategic Options For Japan Business
According to a Bloomberg report, the Seattle-based company has begun early conversations with financial advisers as it assesses the best path for its Japanese unit, one of its largest international markets.
Japan is one of Starbucks' largest markets, with about 2,100 stores. Unlike many other international markets, Starbucks owns and operates most of its stores in Japan rather than licensing them to partners.
The report indicated that a partial divestment could place the value of the Japanese operation between ¥400 billion and ¥500 billion, equivalent to approximately $2.5 billion to $3.1 billion.
The review follows Starbucks' recent restructuring efforts in Asia. Earlier this year, the company completed the sale of a 60% interest in its China retail business to Boyu Capital, a move management described as supporting long-term, disciplined expansion.
Starbucks’ stock inched 0.6% higher overnight, heading into Wednesday.
CEO Says Overseas Markets Offer Growth Potential For SBUX
Speaking at the Evercore Consumer & Retail Conference on Tuesday, CEO Brian Niccol said the company sees considerable overseas runway, with roughly 22,000 stores outside the United States.
Niccol said he remains optimistic about Starbucks' future in China and believes the business can grow well beyond its current size. He added that the company's local partnerships could help speed up that expansion.
HE also added that Starbucks sees capacity for at least 5,000 additional company-operated locations across the U.S., noting that many communities between Texas and the Mid-Atlantic region have fewer stores than demand may justify.
SBUX Retail Traders View
On Stocktwits, retail sentiment around the stock remained in ‘neutral’ territory. The stock has garnered a 100% rise in user message volume over the past month, but watchers edged 0.1% lower.
A user said, “$SBUX LOAD AND SWING THIS INTO WINTER OF 2026!!! THIS IS A NO BRAINER!!! $120 ++++ SOON!!!! “
SBUX stock has gained over 15% year-to-date.
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