Starbucks Corp (NASDAQ:SBUX) may sell its UK operations as it faces competition from newer players like Pret A Manger, Tim Hortons (TSX:THI) and Costa, with the world's largest coffee chain roping in American investment bank Houlihan Lokey (NYSE:HLI) to canvass interest for the company's UK operations, according to a report in the Times.
However, a Starbucks spokesperson denied the report, saying the company has not initiated a "formal sales process" for its UK business and is continuing to "evaluate strategic options" for its international operations.
In the UK, Starbucks has more than 1,000 coffee shops and employs around 4,000 people.
Starbucks Coffee Company UK reported sales of £328mln for the year to October 2021, rebounding from a difficult year caused by Covid restrictions, and reported £13.3mln in pre-tax profits, compared with a loss of £40.9mln in 2020.
In its last quarter earnings report, the company suspended its fiscal year guidance after missing Wall Street forecasts due to China's tough COVID-19 curbs which impacted sales in the country.
Starbucks' city centre locations have also been affected by changes in working habits, with the coffee chain's latest company accounts noting recovery in suburban and retail park locations, but a slowdown in city centre sales due to the growing work-from-home culture.
Shares closed 1.82% up at US$79.62 on Nasdaq on Friday.