Starbucks is weighing a stake sale of its Japanese arm, a move that could bring in $2.5bn to $3.1bn. The coffee giant has tapped investment banks to explore options, including an initial public offering, as it considers how best to monetize its largest overseas market. The decision follows a recent sale in China.

Japan hosts roughly 2,100 company‑operated stores, making it a key revenue driver for the chain. In April, Starbucks sold a 60% stake in its China retail business to Boyu Capital, a deal it described as a way to accelerate growth with a local partner. A similar carve‑out could give private equity a second chance in the region.

The Japanese unit was originally listed in 2001, bought back by Starbucks in 2014, and taken private in 2015. CEO Brian Niccol praised last quarter’s results as “outstanding,” citing New Year trading, tourism and new products. A sale or IPO would signal confidence in the market’s resilience and could fetch a premium.

With global same‑store sales up 6.2% in Q2 and shares up 16% this year, Starbucks has rebounded from a slump. A Japanese exit would mirror the China transaction and reinforce the company’s strategy to partner with local investors for faster expansion. Investors will watch how the valuation aligns with the broader Asia carve‑out trend.