### Starbucks Reaffirms Commitment to China Amid Market Speculation Starbucks Corp. has publicly stated that it is not considering a full sale of its China operations, countering recent reports from Caixin Global that suggested otherwise. This announcement comes as the coffee giant faces increasing competition from local rivals in its second-largest market, where its market share has reportedly slipped to 14% [https://www.benzinga.com/markets/equities/25/06/46066854/starbucks-denies-full-china-exit-amid-stake-sale-talks-as-market-share-slips-to-14]. The company's clarification aims to stabilize its stock, which had seen a rise following the initial speculation about a potential sale [https://seekingalpha.com/news/4461337-starbucks-reportedly-denies-plans-to-sell-china-operations-amid-market-speculation]. ### Breakdown of Starbucks' Position on China Operations 1. **Denial of Sale Reports**: Starbucks has officially denied any plans for a complete exit from its China operations, emphasizing that it is not currently considering a full sale [https://www.cp24.com/news/money/2025/06/24/starbucks-says-it-is-not-currently-considering-a-full-sale-of-its-china-operations]. 2. **Market Context**: The company is navigating a challenging market landscape in China, where it faces stiff competition from local coffee brands, which have been gaining traction among consumers [https://www.businesstoday.com.my/2025/06/24/starbucks-denies-china-exit-as-stake-sale-talks-continue]. 3. **Speculation on Stake Sales**: Despite denying a full sale, Starbucks has reportedly engaged in preliminary discussions with potential buyers, although the specifics of what is for sale remain unclear [https://www.econotimes.com/Starbucks-Denies-Reports-of-China-Business-Sale-Amid-Buyer-Speculations-1714088]. 4. **Stock Market Reaction**: The initial report from Caixin Global had a positive impact on Starbucks' stock, leading to a rise in shares during late trading, which the company sought to stabilize with its denial [https://www.nwaonline.com/news/2025/jun/25/starbucks-not-planning-to-ditch-china-business]. ### Supporting Evidence and Market Data - **Market Share**: Starbucks' market share in China has decreased to **14%**, indicating a significant challenge in maintaining its competitive edge against local brands [https://www.benzinga.com/markets/equities/25/06/46066854/starbucks-denies-full-china-exit-amid-stake-sale-talks-as-market-share-slips-to-14]. - **Stock Performance**: Following the speculation about a potential sale, Starbucks shares experienced a notable uptick, reflecting investor interest and concern regarding the company's future in China [https://seekingalpha.com/news/4461337-starbucks-reportedly-denies-plans-to-sell-china-operations-amid-market-speculation]. ### Conclusion: Starbucks' Strategic Focus on China In summary, **Starbucks is not planning a full exit from its China operations**, despite facing significant competition and market challenges. The company has denied reports of a complete sale while acknowledging ongoing discussions with potential buyers regarding other aspects of its business. 1. **Denial of Full Sale**: Starbucks has confirmed it is not considering a full sale of its China operations [https://www.cp24.com/news/money/2025/06/24/starbucks-says-it-is-not-currently-considering-a-full-sale-of-its-china-operations]. 2. **Market Challenges**: The company is contending with a declining market share and increased competition from local brands [https://www.businesstoday.com.my/2025/06/24/starbucks-denies-china-exit-as-stake-sale-talks-continue]. 3. **Stock Stability**: The clarification aims to stabilize stock prices that fluctuated due to speculation [https://seekingalpha.com/news/4461337-starbucks-reportedly-denies-plans-to-sell-china-operations-amid-market-speculation]. Starbucks' commitment to its operations in China reflects its strategic focus on navigating a complex market landscape while addressing investor concerns.