Getty Images Starbucks Corp. ( SBUX ) is moving into a new reporting structure for its China operations following the close of its previously announced transaction with Boyu Capital, shortly after the end of Q2 2026. Under the agreement, Boyu has acquired a 60% stake in Starbucks’ China retail operations, with Starbucks retaining a 40% holding alongside control of its brand and intellectual proper...
Getty Images Starbucks Corp. ( SBUX ) is moving into a new reporting structure for its China operations following the close of its previously announced transaction with Boyu Capital, shortly after the end of Q2 2026. Under the agreement, Boyu has acquired a 60% stake in Starbucks’ China retail operations, with Starbucks retaining a 40% holding alongside control of its brand and intellectual property. From Q3, the China retail business will be deconsolidated and folded into the group’s licensed segment Consensus expectations already reflect the accounting change. For Q3, the company’s international company-operated sales are projected to decline 55% year-on-year to $692 million, while international licensed sales are projected to increase 31% to $608 million. International retail stores are projected to decline to 2,465, from 10,435 last quarter, while licensed stores increase from 12,309 last quarter to 20,446 in Q3. While the transition lowers reported China-related revenues, analysts expect the new China joint venture structure to be margin accretive. Q3 non-GAAP operating income is expected to rise 15% year-on-year to $1.1 billion, while non-GAAP earnings attributable to Starbucks are projected to increase 29% to $741 million. Despite the accounting reset, China remains an important part of Starbucks’ international growth agenda, with the company planning to expand its footprint from more than 1,000 county-level cities today to more than 1,500 over the next three years. Original Post Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
Market Snapshot USD/INR ₹95.00 -0.0% Nifty 50 Index 23,382.60 -0.7% India 10-Year Bond Yield 7.02% +0.01 Spot Gold ($/oz) $4,477.98 -0.2% S&P 500 Futures 7,581.00 -0.4% Market data as of 08:12 AM IST, Jun. 2, 2026, or the previous close for Indian markets. Data is subject to provider delays. Good morning... I’m Ashutosh Joshi , bringing you up to speed on markets. Grim milestones keep piling up fo...
Market Snapshot USD/INR ₹95.00 -0.0% Nifty 50 Index 23,382.60 -0.7% India 10-Year Bond Yield 7.02% +0.01 Spot Gold ($/oz) $4,477.98 -0.2% S&P 500 Futures 7,581.00 -0.4% Market data as of 08:12 AM IST, Jun. 2, 2026, or the previous close for Indian markets. Data is subject to provider delays. Good morning... I’m Ashutosh Joshi , bringing you up to speed on markets. Grim milestones keep piling up for Indian equities. As the benchmark Nifty 50 capped a fourth day of declines on Monday, South Korea’s tech-heavy equity market has overtaken India’s as the world’s sixth-largest. This comes just days after Taiwan displaced India from the top five. Meanwhile, foreign ownership of local shares has slumped to the lowest in a decade (more on that below). While India’s economy, much larger than those of Korea and Taiwan, has shown resilience amid the energy shock triggered by the Iran war, the outlook for equities is far less reassuring. Still-elevated oil prices, a weaker monsoon outlook, a depreciating currency and investor preference for markets that offer better exposure to the AI trade raise the risk of continued underperformance. For Tuesday’s cues, Asian shares have retreated from record highs after efforts to secure a US-Iran peace deal made little progress. In today’s newsletter, we write about: Industrial stocks as outliers Small- and mid-caps outdoing large-caps A buffer for shadow lenders But first, let’s look at how foreign investors are heading for the exits. Markets Buzz: Foreign Funds Lose Interest Overseas funds’ footprint in the stock market continues to shrink. The cumulative value of foreign portfolio holdings in local shares has fallen to its lowest level since 2016, according to NSDL data. Concerns about the impact of the US-Iran war on energy supplies , coupled with a shortage of AI-linked investment opportunities, have prompted global money managers to pull out $45 billion since the start of 2025. The exodus has reduced their ownership of Indian equities ...
Suriya Phosri/iStock via Getty Images Market Commentary Although the first quarter began with plenty of uncertainties on the horizon, sentiment was generally positive and the arrow pointed upwards for domestic equities. In fact, the S&P 500® registered a new all-time high, even breaching the 7000 level, in late January. Much of this optimism was based on the expectation that the Federal Reserve wo...
Suriya Phosri/iStock via Getty Images Market Commentary Although the first quarter began with plenty of uncertainties on the horizon, sentiment was generally positive and the arrow pointed upwards for domestic equities. In fact, the S&P 500® registered a new all-time high, even breaching the 7000 level, in late January. Much of this optimism was based on the expectation that the Federal Reserve would continue cutting interest rates, while the more widespread adoption of AI might also boost earnings and push economic growth above consensus expectations. Investors were sanguine to start the year. There were, however, some meaningful changes underway regarding market internals. Since the beginning of the year, we've witnessed a decisive shift in market leadership and a rotation away from the mega-cap growth and AI-driven themes that dominated the previous year. The NASDAQ® and S&P 500® faced pressure from valuation compression and "higher-for-longer" interest rate expectations, while value-oriented benchmarks have been buoyed by a resurgence in "old economy" sectors. This shifting market leadership—and the importance of valuations—was underscored as volatility and turmoil gripped the market during the latter parts of the first quarter. In late February, the launch of new military actions in Iran roiled markets, The VIX spiked and the sell-off deepened when it appeared this conflict might persist and severely disrupt energy markets. Investors worried that any sustained oil price shock would work its way into inflation numbers. In turn, this could tie the Federal Reserve's hands with regard to further eases in monetary policy. Although the price of oil has receded somewhat and the market rebounded with a sharp rally on the last day of the quarter, the situation remains tenuous at best. For the first quarter, the S&P 500®, the most popular proxy for the U. S. stock market that has become dominated by a handful of mega-caps, declined by 4.6%. Not surprisingly Energy stocks...