Starbucks is reviewing options for its Japan business, including a possible stake sale, Bloomberg reported, citing people familiar with the matter.
The move comes shortly after the company completed the sale of a majority interest in its China retail operations.
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The report added that the coffeehouse chain has held early discussions with investment banks to consider potential structures for its Japan unit.
Japan is one of the company’s largest markets with 2,100 outlets, most of which are operated directly.
A stake sale could value the unit at Y400bn ($2.5bn) to Y500bn, some of the people said, noting potential interest from sector peers and private equity funds.
An IPO of the Japan business is also being examined.
The review is still at an early stage, and no decisions have been made.
The company does not provide a separate breakdown for Japan, but CEO Brian Niccol said in April that performance there was “outstanding” last quarter, helped by New Year demand, tourism and new products.
Starbucks entered Japan in 1995 through a joint venture with Sazaby League and listed the local arm in 2001.
Sazaby sold its stake back to Starbucks in 2014, and the unit was delisted the following year.
Globally, Starbucks has rebounded from a downturn, with comparable store sales up 6.2% in the second quarter from a year earlier. Its shares are up 16% this year.
The chain sold a 60% stake in its Chinese retail operations to Boyu Capital in April. Its latest quarterly report notes this milestone aligns with plans for disciplined, sustainable growth in China.
