Emily Flippen

Yeah, you're right, John.

I do have thoughts for better or worse.

And I think my answer is a little complicated.

I think this is the right move for this management team.

But I think this is the wrong move for Starbucks and its shareholders.

I mean, look, this is Starbucks' new leadership just saying, hey, we're no longer the best owners of our business in China.

That's the truth, right?

They're exchanging being the leader that could be in Chinese coffee, and instead trading that for cash, lower risk, less assets.

And on a quantitative basis, this is really only a good move if their Chinese business continues to underperform.

But I actually think that's pretty unlikely.

And I think if they had just taken the time to find the right leaders and skill set for that side of the business, there was a lot that they could save in this initiative.

And look, Starbucks, their second largest market, I believe, is China, or maybe their largest market.

It's one of their top two.

And they're facing intense competition there, of course.

But why do you face competition in big markets?

Because the opportunity is that large.

And they're just throwing up their hands and saying, hey, we're going to let somebody else drive the bus.

Yeah, they're retaining 40% and some royalty, but that's all less than 100%.

Starbucks should always be getting 100%.

Yeah, look, this would be canceled the moment it goes across my desk.