Starbucks Eyes Japan Majority Stake Sale at $3B Value

Key Moments

Starbucks Corp is evaluating a sale of a majority stake in its Japan operations that could value the business at about $3 billion, according to people familiar with the matter.
Starbucks Japan operates 1,883 stores and represents nearly 9% of the company’s global store base as of September 2025.
The potential divestment forms part of a broader portfolio reshaping under CEO Brian Niccol, following actions such as store closures and job cuts in North America.

Starbucks Reviews Ownership Structure of Key Overseas Market

Starbucks Corp is considering selling a majority interest in its Japan business in a transaction that could assign the unit an equity value of about $3 billion, two people with direct knowledge of the situation said.

The company’s Japan operations, described as its largest company-operated market outside its home country, encompass 1,883 locations and account for nearly 9% of Starbucks’ global store network as of September 2025.

According to the people, who requested anonymity because they are not authorized to discuss the matter publicly, Starbucks has invited multiple financial advisers to present proposals on strategic options for the Japanese business and is open to the possibility of divesting a majority stake.

While no formal valuation has been disclosed, the sources indicated that internal discussions currently imply a potential value of around $3 billion for Starbucks Japan. The precise stake to be offered has not yet been set, and the valuation ultimately sought by Starbucks will depend on negotiations, one of the people added.

Company Response and Strategic Rationale

In an emailed statement responding to questions about a potential sale, a Starbucks spokesperson said:

“Starbucks Japan is a strong business, with deep brand affinity and trusted presence built over 30 years in the region,” said a Starbucks spokesperson in an emailed response to Reuters’ request for comment on the potential stake sale.

“We continually assess the best structure to be most meaningful to customers and create value for shareholders.”

Bloomberg previously reported in June that Starbucks was reviewing alternatives for the Japan business, including a potential stake sale.

The possible transaction is emerging as Starbucks undertakes a broader reshaping of its global portfolio under Chief Executive Brian Niccol. His initiatives have included store closures and workforce reductions in North America as part of a drive to improve profitability.

Expected Buyer Interest and Deal Process

The planned sale process for a majority position in Starbucks Japan is anticipated to draw attention from both international and domestic private equity firms, the people familiar with the matter said. One of them noted that a formal process could commence in the fourth quarter.

Historical Context and Business Growth in Japan

Starbucks assumed full ownership of its Japan operations in 2014, when it acquired its long-standing partner Sazaby League for about $914 million, valuing the business at roughly $1.5 billion at that time.

Since that transaction, the Japanese network has grown from approximately 1,050 stores to 1,883 outlets as of September 2025.

Metric	2014	As of September 2025
Implied valuation of Starbucks Japan	About $1.5 billion	About $3 billion (potential)
Number of stores in Japan	Around 1,050	1,883
Ownership	Starbucks takes full control (buys Sazaby League for about $914 million)	Starbucks considering sale of a majority stake

Analyst Views and Operational Performance

Analysts at TD Securities commented in June that realizing value from the Japan unit would be strategically logical, arguing that the market is not central to Starbucks’ brand and that a sale could enable management to concentrate more intensely on revitalizing its core U.S. operations.

Efforts by Niccol to draw customers back through store enhancements and increased marketing activity have contributed to more stable demand, but these initiatives have also pushed up expenses and weighed on margins.

In the company’s international segment, comparable store sales rose 5.7% in the third quarter, with Starbucks identifying Japan as a major contributor to that performance.

Comparison With Recent China Transaction

Last year, Starbucks relinquished control of its China operations to Boyu Capital in a deal that valued the business at $4 billion, reflecting mounting pressure from slower growth and fiercer competition. That transaction closed in April.

According to the company, the overall value of the China business – taking into account the sale proceeds, the value of the retained interest and projected licensing income for at least the next 10 years – would surpass $13 billion.

It is not currently known whether any potential transaction involving the Japan business would adopt a similar structure.

At the time of the China deal process, several global private equity firms, including Carlyle Group, EQT, KKR and Bain Capital, were invited to submit bids, Reuters reported then.