Starbucks (SBUX) risk factors, FY2024 10-K

Other

1. 01Summary of Risks Associated with Our Business

Risks Related to Brand Relevance and Brand Execution

1. 02Our success depends substantially on the value of our brands, and failure to preserve their value could have a negative impact on our financial results
2. 03We may not be successful in our marketing strategies, promotional and advertising plans, and pricing strategies

Risks Related to Our Business

1. 04We may not be successful in implementing important strategic initiatives or effectively managing growth, which may have an adverse impact on our business and financial results
2. 05Our investments to transform and enhance the customer experience, including through technology, may not generate the expected results
3. 06Evolving consumer preferences and tastes, as well as adverse public or medical opinions about the health effects of consuming our products, may adversely affect our business
4. 07If our business partners and third-party providers do not satisfactorily fulfill their responsibilities and commitments, it could damage our brand, and our financial results could suffer
5. 08Reported incidents involving food- or beverage-borne illnesses, tampering, adulteration, contamination, or mislabeling, whether or not accurate, could harm our business
6. 09If we are unable to meet our projections for new store openings or efficiently maintain the attractiveness of our existing stores, our operating results could suffer

Risks Related to Operating a Global Business

1. 10We are highly dependent on the financial performance of our North America operating segment
2. 11We are increasingly dependent on the success of certain international markets in order to achieve our growth targets
3. 12We face risks as a global business that could adversely affect our financial performance
4. 13Our reliance on key business partners may adversely affect our business and operations

Risks Related to Supply Chain

1. 14Increases in the cost of high-quality arabica coffee beans or other commodities or decreases in the availability of high-quality arabica coffee beans or other commodities could have an adverse impact on our business operations and financial results
2. 15Our supply chain may be unable to fully support current and future business needs
3. 16Interruption of our supply chain and our reliance on suppliers could affect our ability to produce or deliver our products and could negatively impact our business and profitability

Risks Related to Macroeconomic Conditions

1. 17Our financial condition and results of operations are subject to, and may be adversely affected by, a number of macroeconomic and other factors, many of which are largely outside our control
2. 18Economic conditions in the U.S. and international markets have adversely affected, and could continue to adversely affect, our business and financial results
3. 19Failure to meet our announced guidance or market expectations for our financial performance will likely adversely affect the market price and increase the volatility of our stock, and fluctuations in the stock market as a whole may also impact the market price and volatility of our stock

Risks Related to Human Capital

1. 20The loss of key personnel, difficulties with recruiting and retaining qualified personnel, or ineffectively managing changes in our workforce could adversely impact our business and financial results
2. 21Changes in the availability and cost of labor could adversely affect our business

Risks Related to Competition

1. 22We face intense competition in each of our channels and markets, which could lead to reduced profitability

Risks Related to Environmental, Social, and Governance Matters

1. 23Climate change may have an adverse impact on our business
2. 24Our business is subject to evolving corporate governance and public disclosure regulations and expectations, including with respect to environmental, social, and governance matters, that could expose us to numerous risks
3. 25Certain activist shareholder actions have caused, and could continue to cause, us to incur expense, hinder execution of our business strategy, and adversely impact our stock price

Risks Related to Regulation and Litigation

1. 26Failure to comply with applicable laws and changing legal and regulatory requirements could harm our business and financial results
2. 27results of operations. The burdens imposed by these and other laws and regulations that may be enacted, or new interpretations of existing and future laws and regulations, may also require us to incur substantial costs in reaching compliance in a manner adverse to our business
3. 28These tax measures, whatever their scope or form, have adversely impacted, and could continue to impact our business and financial performance by increasing the cost of certain of our products, reducing overall consumption of our products, or leading to negative publicity
4. 29We have been, and could continue to be, party to litigation or other legal proceedings that could adversely affect our business, results, operations, and reputation

Risks Related to Cybersecurity and Data Privacy

1. 30Failure to maintain satisfactory compliance with certain privacy and data protection laws and regulations may result in substantial negative financial consequences, reputational harm, and civil or criminal penalties
2. 31We rely heavily on information technology in our operations and growth initiatives, and any material failure, inadequacy, interruption, or security failure of that technology could harm our ability to effectively operate and grow our business and could adversely affect our financial results

Risks Related to Intellectual Property

1. 32Failure to adequately protect our intellectual property or ensure that we are not infringing on the intellectual property of others could harm the value of our brand and our business