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Investing.com -- Shares of Starbucks Corp . (NASDAQ:SBUX) edged up 1.4% in pre-market trading as the company initiated a process to overhaul its extensive China operations. Starbucks has begun reaching out to private equity firms, technology companies, and other potential investors to explore options for its business in China, including a potential sale of a stake, according to a report from Bloomberg, citing sources. This move could value the assets at several billion dollars.
The outreach to potential investors comes amidst growing competitive pressures in China, Starbucks’ second-largest market. Homegrown coffee chains such as Luckin Coffee (OTC:LKNCY) Inc. and Cotti Coffee have been gaining ground, challenging Starbucks’ dominance.
Starbucks, which operates over 7,750 stores in China, has been transparent about the macroeconomic challenges it faces in the country.
The company has set a timeline for prospective bidders to submit initial feedback in the coming weeks. The details of the revamp strategy remain private, with the company declining to comment further beyond the CEO’s previous statements.
The market’s response to Starbucks’ strategic moves in China reflects investor interest in the company’s efforts to adapt and thrive in a challenging and evolving market landscape.
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