Rumor has it that Starbucks (SBUX.US) is considering selling the majority stake in the Japanese business and the valuation may reach 3 billion US dollars

The Zhitong Finance App learned that, according to two people familiar with the matter, Starbucks (SBUX.US) is considering selling a majority stake in its Japanese business. This potential deal could set the valuation of the coffee chain giant's largest overseas proprietary market at around $3 billion.

According to the data, as of September 2025, the world's largest coffee chain had 1,883 stores in Japan, accounting for nearly 9% of its total global stores. People familiar with the matter said that Starbucks has sought opinions from a number of financial advisors on various plans for the business and is willing to sell most of its shares. One of the people familiar with the matter said that the final share ratio to be sold has not yet been determined, and the valuation that Starbucks is ultimately seeking will also depend on the outcome of the negotiations.

In response to a request for comment via email, a Starbucks spokesperson said, “Starbucks Japan is a strong business that has established deep brand affinity and a trustworthy market position in the region over 30 years.” “We continuously evaluate the most appropriate business structure to create maximum meaning for our customers and create value for our shareholders.”

Earlier in June, there were reports that Starbucks was considering a number of options for its Japanese business, including selling part of its shares. Starbucks has a long history in Japan. The company established a joint venture with Sazaby League Ltd. in 1995 and listed the Japanese business in 2001. In 2014, Sazaby sold its shares in the joint venture to Starbucks, which delisted the Japanese business from the stock market a year later. Starbucks did not separately disclose the performance of its Japanese stores, but CEO Brian Nichol said in April that Starbucks Japan's first quarter results were “excellent” thanks to strong sales during the new year, recovery in the tourism industry, and new product launches.

The potential sale comes at a time when Starbucks is reorienting its global business portfolio under Nicole's leadership. Nicole has closed stores and cut corporate jobs in North America to push the company back to profitability. In April of this year, Starbucks completed a joint venture deal with Boyu Investment to sell 60% of its shares in the Chinese retail business based on a corporate value of 4 billion US dollars and keep 40% of its shares. The newly established joint venture will be responsible for managing about 8,000 companies' own coffee stores. Starbucks will act as the owner and authorized party of global brands, and the two sides have officially entered the joint venture operation stage.

Starbucks said the total value of its business in China — including sales proceeds, the value of reserved shares, and licensing revenue likely to be obtained over the next 10 years — will exceed $13 billion.

Nicole helped stabilize demand by upgrading stores and increasing marketing efforts to attract return customers, but it also boosted costs and put pressure on profit margins. In the third quarter, Starbucks' international business same-store sales increased by 5.7%. Nicole pointed out that with the establishment of the Chinese joint venture, about 90% of the company's overseas stores have switched to an authorized model. This asset-light model is generally more popular with investors because it can improve long-term profits.

TD Securities analysts said in June that it is strategically reasonable for Starbucks to sell the Japanese business because the Japanese market is not the core market for the Starbucks brand, and it also allows management to further focus on reversing its core US business. It's unclear whether Starbucks's sale of the Japanese business will follow the same transaction structure as the sale of the Chinese business.

People familiar with the matter said that the process of divesting majority shares in Starbucks' Japanese business is expected to attract the interest of global and local private equity acquisition companies. One of the people familiar with the matter added that the formal sale process could begin in the fourth quarter.