What We Learned This Week

Starbucks Partnership in China: Starbucks is reportedly drawing serious buyer interest for a potential stake in its China operations. The company has been exploring a partial sale for some time, balancing lagging performance in the region with the long-term potential it still represents. Current discussions suggest a valuation around $10 billion, reasonable when you consider that China accounts for roughly 8% of revenue and Starbucks' total market cap sits around $108 billion. A deal at that level seems increasingly plausible.

This could be a smart strategic move. McDonald’s executed a similar transaction in China several years ago, and its local operations have grown meaningfully since. China remains a notoriously difficult market for Western brands. The opportunity is massive given the population and rising consumption, but local preferences, brand loyalty, and government policy make execution tricky. Bringing in a local partner with deeper regional expertise could help Starbucks adapt more effectively to local tastes, reduce cultural friction, and position the brand as more authentically integrated. Competitive pressure from high-quality, low-cost domestic players also makes differentiation difficult, so any move that improves localization could pay off. Retaining a significant minority stake, as Starbucks reportedly plans to do, would allow the company to participate in the upside while reducing operational risk. In a market this complex, owning part of something successful may ultimately be better than owning all of something that underperforms.

Boeing’s Bounce Continues: Boeing shares have been on a run, hitting new one-year highs this week. The company reported it delivered 60 aircraft in June (its strongest monthly showing since 2023) and 150 planes for the second quarter, marking its best Q2 performance since 2018. That momentum is particularly important as Boeing continues efforts to ramp up 737 production following a long stretch of manufacturing and safety issues. Management pointed to broad operational improvements aimed at boosting both output and reliability. They’re also awaiting FAA approval to lift the current cap of 38 737s per month—a step that could be helped by this pickup in deliveries.

The stock also got a boost from early indications surrounding the Air India crash investigation. While full findings haven’t been released, the focus appears to be shifting toward potential fuel switch issues in the engines, rather than anything tied to Boeing’s 787 platform design. That’s a key distinction for investors worried about another wave of reputational or regulatory fallout. Still plenty of ground to cover, but if Boeing can keep production stable and steer clear of further setbacks, there may be more room to run.