Starbucks Explores Majority Stake Sale in Japan Business at Potential $3 Billion Valuation

Starbucks (NASDAQ:SBUX) is considering selling a majority stake in its Japanese operations in a transaction that could value the business at approximately $3 billion, according to two people familiar with the matter.

The company has invited several financial advisers to present options for the business and is open to relinquishing majority ownership, the sources told Reuters.

No final decision has been announced. The size of any stake sale remains undetermined, and the eventual valuation would be subject to negotiations.

Starbucks Japan operates 1,883 stores, representing nearly 9% of the company’s global store network as of September 2025. It is Starbucks’ largest company-operated market outside the United States.

A Starbucks spokesperson said the Japanese business had established substantial customer recognition during its 30 years in the market and that the company regularly reviews its operating structure to serve customers and generate shareholder value.

Bloomberg previously reported in June that Starbucks was evaluating options for its Japanese operations, including a potential stake sale.

Sale Process Could Begin in Fourth Quarter

According to the sources, a potential majority stake sale is expected to attract interest from international and Japanese private equity firms.

One source indicated that a formal sale process could begin in the fourth quarter.

Starbucks acquired full ownership of its Japanese operations in 2014 after purchasing the remaining interest held by its longstanding partner, Sazaby League, for approximately $914 million.

The transaction valued the business at around $1.5 billion.

Since then, Starbucks Japan has expanded from approximately 1,050 stores to 1,883 locations as of September 2025.

The proposed $3 billion valuation remains an estimate provided by the sources rather than an agreed transaction price.

Potential Transaction Forms Part of Portfolio Review

The possible divestment comes as Starbucks reviews its international operations under Chief Executive Brian Niccol.

The company has closed stores and reduced corporate staffing in North America as part of efforts to improve profitability.

Investments in store upgrades and marketing have contributed to stabilising customer demand but have also increased operating expenses and affected margins.

In June, TD Securities analysts said a transaction involving the Japanese business could allow Starbucks to concentrate more resources on its US operations.

Starbucks reported a 5.7% increase in international comparable-store sales during its third quarter, identifying Japan as an important contributor to the growth.

China Transaction Provides a Previous Example

Starbucks previously transferred control of its Chinese operations to Boyu Capital through a transaction that valued the business at $4 billion.

The deal, announced last year, closed in April.

Starbucks said the combined value of the transaction proceeds, its retained ownership interest and anticipated licensing income over at least the following decade would exceed $13 billion.

It remains unclear whether a potential transaction involving Starbucks Japan would use a similar ownership and licensing structure.

During the China sale process, global investment firms including Carlyle Group, EQT, KKR and Bain Capital were invited to submit bids, Reuters previously reported.

Starbucks has not confirmed a buyer, transaction structure or timetable for a potential sale of its Japanese operations.

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