The coffee chain's China business, its second biggest after its US operation, drew non-binding offers from a mix of Chinese and foreign private equity firms valuing the enterprise at between $5 and $10 billion, CNBC reported, citing three people familiar with the matter.

Under one possible outcome, Starbucks could retain a 30 percent stake with a group of buyers each holding less than this share, CNBC said.

A note from TD Cowen said a valuation of between $2.6 billion and $4.7 billion is "more realistic" than one as potentially as high as $10 billion.

Starbucks declined to comment directly on any offers received but said it would not exit China.

"We are looking for a strategic partner with like-minded values, who shares our vision to provide a premium coffeehouse experience," a Starbucks spokesperson said.

"We remain committed to China and want to retain a meaningful stake in the business. Any deal must make sense for Starbucks business and partners."

The bidders include Centurium Capital, Hillhouse Capital and US private equity firms Carlyle Group and KKR, CNBC reported.

As of the end of March, Starbucks had around 7,700 cafes in more than 250 cities in China, employing more than 60,000 people. Only the United Staets, with more than 17,000 cafes is bigger for the chain.

Starbucks has been in turnaround mode, naming former Chipotle CEO Brian Niccol as CEO in August 2024 after the short tenure of Laxman Narasimhan failed to reignite growth.

In its most recent quarter ending March 30, Starbucks had flat revenues in China compared with the year-ago period, with the number of transactions rising four percent but the average ticket falling four percent.

In a conference call in late April, Niccol told analysts that Starbuck's China sales had benefited during the period from adding new sugar-free beverages and introducing options at different price points.

"We've got more work to do in the market, but our brand remains strong," said Niccol.

Shares of Starbucks fell 0.2 percent in afternoon trading.