Starbucks rises on report that its China business may get purchased
Starbucks is up roughly 3% in premarket trading after Bloomberg reported that the company has been approached by investors interested in buying a controlling stake in its ailing China business.
Though Starbucks’ preference was to sell a minority stake in the company, per Bloomberg, it’s now considering selling a larger holding.
The American coffee giant has struggled to succeed in China, its second-largest market after the US. Despite consistently growing its footprint, sales there fell for four straight quarters before finally stabilizing in the quarter that ended in March.
Meanwhile, China’s own coffee giant, Luckin Coffee, just expanded to the US.
The American coffee giant has struggled to succeed in China, its second-largest market after the US. Despite consistently growing its footprint, sales there fell for four straight quarters before finally stabilizing in the quarter that ended in March.
Meanwhile, China’s own coffee giant, Luckin Coffee, just expanded to the US.
