Starbucks narrows down China investment options to a dozen parties, including Carlyle, KKR, Hillhouse, Primavera, JD.com, and Tencent.

Starbucks has shortlisted a dozen parties, including Carlyle, KKR, Hillhouse Investment, Primavera Capital, JD.com, and Tencent, to invest in its China business. The shortlisted firms will have access to Starbucks' China financials to evaluate and prepare bids in the coming months.

Title: Starbucks Shortlists Dozen Firms for China Investment

Starbucks Corp. has moved into the second phase of a process to invest in its China business, shortlisting about a dozen parties including private equity firms and technology companies. Among the firms invited are Carlyle Group Inc., KKR & Co., Hillhouse Investment, Primavera Capital, JD.com Inc., and Tencent Holdings Ltd. [1]

The shortlisted firms will gain access to Starbucks' China financials, allowing them to evaluate and prepare bids in the coming months. This move comes as Starbucks seeks to bolster its presence in China, where it has lagged behind local competitors like Luckin Coffee Inc. [2]

Starbucks' Chief Executive Officer, Brian Niccol, emphasized that the search for a partner is not about capital but rather about enhancing the brand's future prospects. Niccol has previously stated that the China business could grow to 20,000 stores from its current count of roughly 7,800. [1]

The process to introduce new backers in China attracted more than 20 potential investors in total. Starbucks aims to retain a "meaningful" stake in the business. The company has been evaluating options for its China operations, which include a partial or complete stake sale, as well as a financial and operational partnership with a local firm. [2]

The retail sentiment for Starbucks' shares on platforms like Stocktwits has been 'extremely bullish' as of the last reading, despite a year-to-date decline of 2.3% in share prices. [3]

The search for a partner in China is part of Starbucks' broader turnaround effort, which includes cost-cutting measures, boosting staffing at U.S. stores, and refreshing its menu and cafe designs. While global same-store sales have dropped at a more-than-expected rate, comparable sales rebounded in the Chinese market in the last quarter. [2]

References:
[1] https://www.bloomberg.com/news/articles/2025-08-01/tencent-hillhouse-among-dozen-on-shortlist-for-starbucks-china-investment
[2] https://newsable.asianetnews.com/markets/starbucks-china-operations-jd-tencent-kkr-among-potential-investors-to-submit-bids-report-articleshow-sm015gq
[3] https://stocktwits.com/news-articles/markets/equity/Starbucks-china-operations-jd-tencent-kkr-among-potential-investors/chr3YU9RdGt