1414 ET - Starbucks is considering selling a stake in its Chinese business, Bloomberg reported. This move isn't surprising, as the coffee chain has been signaling a willingness to evaluate options in China, Baird analysts say in a research note. A sale could help to lower Starbucks' risk profile, creating a more capital-efficient growth model going forward and boosting investor sentiment, the analysts say. "Even though China may represent a significant long-term growth opportunity for the Starbucks brand, the ongoing uncertainties and volatility tied to operating in this market have led us to believe a licensing/joint-venture model could make the most sense for SBUX going forward," they write. Starbucks is up 2%, and up 6% year-to-date. (connor.hart@wsj.com)
(END) Dow Jones Newswires
November 22, 2024 14:14 ET (19:14 GMT)
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