Starbucks considers selling majority stake in Japan business, valued at about $3 billion

Reuters | September 16, 2026 — Starbucks (SBUX) is considering selling a majority stake in its Japan operations, a deal that could value the business at approximately $3 billion (around ¥200 billion), according to people familiar with the matter. The world's largest coffee chain's biggest wholly-owned overseas market is once again in the spotlight.

Timeline of the Speculation

From Evaluation to Leak

This is not the first time such a move has been rumored. In June 2026, Bloomberg reported that Starbucks had approached multiple investment banks to review strategic options for its Japan business, including a potential sale. Three months later, Reuters has now brought the option of selling a majority stake to the forefront.

Sources emphasized that the process remains in the evaluation stage, no deal has been reached, and it is possible that the company could decide against a sale after further review. The final valuation will depend on due diligence results.

Starbucks' Official Response

A Starbucks spokesperson said: "Starbucks Japan is a strong business that has built deep brand affinity and a trusted market position in the region over the past 30 years. We continuously evaluate the most appropriate business structure."

The statement was widely interpreted by the market as a cautious, standard response — neither confirming nor denying the report.

A 30-Year Journey: From Joint Venture to Full Ownership

Starbucks Japan was established in 1995 as a joint venture between Starbucks and Japanese retail group Sazaby League. The first store opened in Tokyo's Ginza district in 1996, and the joint venture went public on the Tokyo Stock Exchange in 2001.

Just 13 years later, in 2014, Starbucks acquired all shares held by Sazaby League for approximately $914 million, taking 100% ownership of its Japan business at an overall valuation of around $1.5 billion. In 2015, Starbucks Japan was delisted from the Tokyo Stock Exchange.

Since then, Japan has become Starbucks' largest wholly-owned overseas market, with the vast majority of stores directly operated by the subsidiary — a stark contrast to the franchising model Starbucks uses in many other countries.

Store growth:

• At the time of privatization in 2014: approximately 1,050 stores
• As of September 2025: 1,883 stores
• Growth: nearly 80% over roughly a decade

Valuation Benchmark: The Boyu Acquisition of Starbucks China

If the Japan deal moves forward, market observers are likely to compare it to Starbucks' sale of a controlling stake in its China business in November 2025. In that transaction, Starbucks sold up to 60% of its China retail operations to Boyu Capital. The deal corresponded to an enterprise value of approximately $4 billion, with Boyu paying around $2.4 billion for a controlling interest. Starbucks retained a 40% stake and continued to hold brand intellectual property, collecting licensing fees. The overall valuation of the China business was estimated at over $13 billion.

According to sources, the Japan transaction is likely to attract bids from both domestic Japanese private equity firms and global PE funds. The deal structure may mirror the China model: selling a majority stake, with Starbucks retaining a minority interest and continuing to collect brand licensing fees.

Why Now?

Behind the $3 billion valuation lies the broader pressure on Starbucks' global performance. In fiscal 2025, Starbucks reported consolidated net revenue of approximately $37.2 billion, but its GAAP operating margin fell to just 7.9%, a decline of 710 basis points year-over-year. Net profit was approximately $1.857 billion, nearly halved from the previous fiscal year.

Under a transformation and restructuring plan led by a new CEO, selling controlling stakes in high-value overseas markets to generate cash and strengthen the balance sheet has become a natural step in optimizing Starbucks' global asset portfolio.

Japan's coffee market has entered a mature phase with limited growth potential. Bringing in a PE partner to co-operate the business and unlock asset value makes financial sense for Starbucks shareholders.

That said, everything remains in the evaluation stage — whether the deal will ultimately close, at what valuation, and with which buyer, remains to be seen.