SBUX · Earnings call · 2026Q3T · Full report

China Strategic Joint Venture

STARBUCKS CORP · 2026-10-29 · Importance 46 · Surprise 42

Starbucks transitioned its China retail operations from company-operated stores to a licensed joint venture during fiscal 2026, with the retail business now deconsolidated from Starbucks' financials. Starbucks holds a 40% joint venture interest, with its economics reported in income from equity investees. Management expects the transition to drive year-over-year changes in International through the first half of fiscal 2027; the full-year outlook also cites approximately $700 million of revenue associated with the 53rd week and says lapping China's company-operated operations is the primary driver of the expected consolidated revenue decline.

Key facts

• Starbucks China's retail operations are deconsolidated from its financials; its 40% joint venture economics are reported in income from equity investees.
• Starbucks China exceeded its goals in FY2026.