Starbucks is exploring strategic options for its profitable Japanese business, including a possible stake sale that unnamed sources say could value the unit at up to ¥500 billion, in a move that follows the company’s shift toward partnership-led growth in China, according to multiple media reports published June 10, 2026.
(citing Bloomberg) reported that Starbucks is weighing a sale of part of its Japan business, while The Japan Times said the potential transaction could value the business between ¥400 billion and ¥500 billion, or roughly $2.5 billion to $3.1 billion at current exchange rates.Nikkei reported that an initial public offering (IPO) is also under consideration for the Japan unit, which operates around 2,100 stores nationwide. Both The Japan Times and Nikkei noted that most of these outlets are directly operated by Starbucks rather than licensed, with Nikkei putting the figure at 90% company-operated stores, compared with about 60% in North America.
Nikkei said Starbucks Coffee Japan generated revenue of ¥340.1 billion in the fiscal year ended 2025, a 6% increase from the prior year and the fifth consecutive year of growth. The publication added that the company’s higher proportion of directly operated stores in Japan has allowed stricter quality control in that market.
The reported review of options in Japan comes just weeks after Starbucks restructured ownership of its China business. On April 2, 2026, Starbucks announced via BusinessWire that it had closed a deal to sell 60% control of its China retail operations to private equity firm Boyu Capital, valuing the China business at $4 billion.
Under that agreement, detailed in a US Securities and Exchange Commission filing, Boyu holds a 60% stake while Starbucks retains 40% ownership and continues to own and license the Starbucks brand and intellectual property in China. The joint venture oversees approximately 8,000 company-operated coffeehouses in China and has a stated aspiration, described in the same documents and in an April 28, 2026 report from Food & Beverage Outlook, to grow the footprint there to as many as 20,000 locations over time.
Brady Brewer, chief executive officer of Starbucks International, said in the SEC-filed statement that the Boyu partnership “strengthens our long-term commitment to China and enables us to grow with greater speed, efficiency, and focus,” adding that the operating model is designed “to accelerate expansion, enhance profitability, and deliver the Starbucks experience to more communities across China.”
Asked by Nikkei about the parent company’s reported plans for its Japan business, a spokesperson for Starbucks Coffee Japan responded, “It is not something we can answer from our company’s position,” declining to comment on the Bloomberg report. MarketScreener UK similarly noted that deliberations are preliminary and private, and that there has been no official company announcement regarding Japan.
Nikkei reported that Starbucks’ US business, which accounts for roughly 70% of the company’s total revenue, has been underperforming and is undergoing restructuring of stores and corporate roles. According to MarketScreener UK, Starbucks posted its strongest quarterly sales growth in two and a half years in April 2026, but costs have been rising under chief executive Brian Niccol’s turnaround strategy, raising questions among investors about the recovery of profit margins.
The Japan Times observed that the yen’s recent level above ¥160 to the US dollar, citing a rate of ¥160.33, influences the dollar value of any potential transaction for the Japan business, although the underlying figures of ¥400–500 billion cited by unnamed Bloomberg sources remain [UNVERIFIED].
Starbucks first entered Japan through a joint venture with local partner Sazaby League in 1995 and opened its first store in Tokyo’s Ginza district in 1996, according to a 2014 Starbucks press release. That same year, Starbucks bought out Sazaby’s remaining 60.5% stake for approximately $913 million, consolidating full ownership of Starbucks Coffee Japan nearly a decade before the current strategic review was reported.
