Starbucks has denied reports that it is in talks with private equity firms to sell the entirety of its China operations, as it faces slowing sales and intensifying competition from domestic rivals.
“We have a world-class team in China, and a strong brand,” the Seattle-based coffee chain said in a statement on Tuesday. “We see significant long-term potential in the market and are evaluating the best ways to capture the future growth opportunities.”
The statement came after local media outlet Caixin Global reported on Monday, citing sources, that Starbucks was weighing the sale of its China unit, drawing potential buyers including Hillhouse Investment and Trustar Capital, the private equity affiliate of McDonald’s China owner Citic Capital.
Starbucks shares rose less than 1 per cent in after-hours trading in New York, closing at US$92.34. The shares have fallen nearly 20 per cent from a peak in March.
