(Yicai) Oct. 31 -- Starbucks expects to retain a significant equity stake in its China business, which recorded higher-than-average growth in the past fiscal year, and remains confident in the region’s long-term growth potential as it evaluates potential investors, according to Chairman Brian Niccol.

Starbucks China recorded 5 percent revenue growth in fiscal year 2025, outpacing the company’s global performance, the Seattle-headquartered company revealed yesterday.

During the earnings call, Chairman and Chief Executive Brian Niccol said Starbucks has received strong interest from “multiple high-quality potential partners” in relation to the sale of a stake in Starbucks China. He reiterated that Starbucks plans to retain a major shareholding and remains confident in the market’s long-term prospects.

In June, media reports citing people familiar with the matter said Hillhouse Capital had participated in a reverse management roadshow for Starbucks China. The deal structure has yet to be finalized. The unit was reportedly valued between USD5 billion and USD6 billion, with the process expected to extend into 2026. Later reports suggested a valuation as high as USD10 billion.

Chief Financial Officer Rachel Ruggeri said that the company continues to seek the right partner. The potential transaction’s value, she noted, would include three components: an upfront investment by the new partner, Starbucks’ retained equity stake, and future royalty payments.

Starbucks yesterday released its fiscal 2025 fourth-quarter results for the period ended Sept. 29. Quarterly revenue reached USD9.6 billion, up 5 percent from a year earlier, while full-year revenue grew 3 percent to USD37.2 billion.

In the fourth quarter, Starbucks China generated USD830 million in revenue, rising 6 percent year on year and marking its fourth consecutive quarter of growth. Full-year revenue from the China business reached USD3.1 billion, up 5 percent from the prior year.

Starbucks continues to expand in China’s lower-tier markets. In the fourth quarter, it opened 183 new stores, entering 47 additional county-level cities. For the full fiscal year, net new store openings totaled 415.

Editor: Emmi Laine