TLDR
- Starbucks is weighing a majority stake sale in its Japan business, valued at around $3 billion.
- Japan is Starbucks’ biggest overseas company-operated market with 1,883 stores, nearly 9% of its global footprint.
- A formal sale process could kick off in Q4 2026, drawing interest from global buyout firms.
- The move follows Starbucks’ April sale of its China operations to Boyu Capital for $4 billion.
- SBUX stock was up 0.95% on the news and is already up 16% year-to-date.
Starbucks (SBUX) is exploring the sale of a majority stake in its Japan business in a deal that could value the unit at around $3 billion, according to Reuters sources.
SBUX stock rose 0.95% on the news, adding to a 16% gain year-to-date. The stock was up 0.28% in pre-market trading before the report gained traction.
Japan is Starbucks’ biggest overseas company-operated market. It runs 1,883 stores there, accounting for nearly 9% of the company’s global store count as of September 2025.
The market has been a strong performer. Japan was cited as a key driver behind the 5.7% growth in international comparable store sales during the third quarter.
Starbucks has already been talking to financial advisers about the options and is open to selling a majority stake, the sources said. The exact stake size and final valuation have not been decided and will be subject to negotiations.
A formal process could begin in Q4 2026, one source said.
The company took full control of its Japan operations back in 2014, buying out partner Sazaby League for around $914 million, valuing the business at roughly $1.5 billion at the time. Since then, the store count has grown from around 1,050 to 1,883.
Following the China Playbook
This move mirrors what Starbucks did with its China business. In April, it handed control of those operations to Boyu Capital in a deal valuing the unit at $4 billion.
Starbucks said the total value of the China deal, including its retained stake and expected licensing income over at least 10 years, would exceed $13 billion. It’s not yet clear if the Japan deal would follow the same structure.
The potential sale is expected to draw interest from global and local private equity firms. Carlyle Group, EQT, KKR, and Bain Capital were all previously invited to bid on the China business.
Niccol’s Restructuring Push
CEO Brian Niccol has been reshaping Starbucks since taking the helm, closing stores and cutting corporate jobs in North America to bring costs down and lift margins.
Analysts at TD Securities said in June that selling the Japan unit makes strategic sense. Their view is that Japan is not central to the Starbucks brand and that offloading it could let management focus more tightly on the U.S. recovery.
A spokesperson for Starbucks said: “Starbucks Japan is a strong business, with deep brand affinity and trusted presence built over 30 years in the region. We continually assess the best structure to be most meaningful to customers and create value for shareholders.”
Wall Street currently rates SBUX a Moderate Buy, with 12 Buy ratings and 8 Hold ratings on TipRanks. The consensus price target sits at $119, implying around 23% upside from current levels. The highest analyst target is $143.
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