To be included in the S&P 500 index, a company needs to be based in the United States. Since it's a constituent of the S&P 500, many people think of Starbucks (NASDAQ: SBUX) as a U.S. company. Indeed, it's headquartered in Seattle. However, this coffee giant's business is increasingly focused on China.

As we'll see, Starbucks stock looks reasonably valued right now. But it would look darn cheap if China was living up to its full potential. And that's why a rebound for business in China could catalyze Starbucks stock.

Starbucks' fiscal year ends in October. During its fiscal 2022, the company opened 661 net new company-operated locations in China. For perspective, it only opened 1,120 net new company-operated stores globally. Therefore, 59% of all new company-operated Starbucks locations in fiscal 2022 were opened in China. Moreover, in the first quarter of its fiscal 2023, Starbucks opened 71 net new locations in China, which was 30% of Starbucks' new company-operated store openings.

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Source Fool.com