Shares of Starbucks Corporation (NASDAQ: SBUX) stayed green on Friday. The stock has dropped 8% over the past 12 months. The coffee store chain continues to gain traction on its international expansion and a large part of this involves China, its second largest market after North America. Here’s a look at how the company is moving ahead in China:
China – tea to coffee
Starbucks has made significant progress over the past 26 years in its business in China, a primarily tea-drinking region. China is a very important and fast-growing market, and together with the US, it makes up the majority of the company’s global portfolio.
In the fourth quarter of 2025, net revenues in China increased 6.1% year-over-year to $831.6 million. Comparable store sales rose 2%, driven by a 9% growth in comparable transactions. This was partly offset by a 7% drop in average ticket.
The company’s growth in the region has been supported by product innovation, strong marketing and the rapid growth of its delivery business. Its continued efforts in beverage innovation and new options for customization has helped drive customer frequency. Its tea latte lineup is gaining popularity, and its pricing adjustments have helped broaden its customer base and boost sales.
Starbucks’ recently-announced joint venture with Boyu Capital is expected to help accelerate its growth in China. The JV will have Boyu holding a 60% interest in Starbucks retail operations in China while Starbucks will retain a 40% stake and continue to own and license the Starbucks brand. SBUX expects the total value of its China retail business to exceed $13 billion.
The partnership with Boyu is expected to help drive product innovation, improve digital capabilities and expand into new cities and regions. At the end of Q4 2025, Starbucks had 8,011 stores in China, which reflects a 5% increase from the prior-year quarter. The company aims to expand this to as many as 20,000 locations over time. Starbucks sees vast opportunity for further expansion and growth in China.
Q4 2025 performance
In the fourth quarter of 2025, Starbucks’ consolidated net revenues increased 5% YoY to $9.6 billion. Global comparable store sales increased 1%. On an adjusted basis, earnings per share decreased 35% to $0.52.
Comparable store sales in North America were flat while International comparable store sales were up 3%. SBUX ended the quarter with 40,990 stores. At Q4-end, stores in the US and China made up 61% of the company’s store fleet worldwide.
