Investor Pressure to Resume Union Negotiations
On Thursday, 17 October 2025, a group of long‑term shareholders of Starbucks Corporation (NASDAQ: SBUX) wrote to company officials urging a restart of union talks with employees. The letter, posted on the New York City Comptroller’s website, was signed by Comptroller Brad Lander, Trillium Asset Management, and the Shareholder Advocacy Group. The shareholders cited concerns over staffing, wages and other labor‑related issues, and requested that the company engage in meaningful negotiations with the union representing its workers.
Starbucks’ stock reacted modestly to the news, rising 1.32 % to close at $85.36. The company’s price‑to‑earnings ratio of 37.53 and a market capitalization of $90.7 billion suggest that shareholders are evaluating the long‑term impact of labor relations on the firm’s financial performance.
China Operations Sale Underway
In parallel, Starbucks is evaluating proposals from five bidders for the sale of a significant stake in its China operations. According to a report from the Wall Street Journal and corroborated by several Chinese news outlets, the transaction is valued at more than $10 billion when all factors—royalties, upfront investments, and retained equity—are included. The company has retained a 49 % stake in the China business post‑sale.
Key potential buyers include Carlyle Group and Boyu Capital, with additional interest from Sequoia Capital, Chunhua Capital, and Fangyuan Capital. The Chinese regulatory filings indicate that a final buyer is expected to be confirmed by the end of October, with the sale process entering a countdown phase.
The sale is expected to allow Starbucks to restructure its supply chain in China while maintaining relationships with local partners. Company executives have emphasized that operational capability, synergies, and brand preservation will be critical criteria in selecting the buyer.
Summary of Key Points
| Issue | Status | Value/Impact |
|---|---|---|
| Union negotiations | Shareholder letter urges restart | Potential impact on labor costs and public image |
| China operations sale | Five bidders, valuation > $10 bn | Strategic realignment in a key growth market |
| Share price | +1.32 % on news release | Reflects investor reaction to labor and M&A developments |
Starbucks’ current share price of $85.36, a 52‑week range of $75.50 – $117.46, and a P/E of 37.53 place the firm in a competitive position to respond to both labor and international market dynamics.
