Starbucks (SBUX) risk factors, FY2025 10-K

Starbucks's FY2025 10-K, filed Nov 14, 2025, lists 34 risk factors in 11 groups. Against the prior year's 32: 8 new, 6 dropped, 24 substantially reworded.

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Risk factors listed
3411 groups
New this year
8vs 32 last year
Dropped
6since the prior 10-K
Substantially reworded
24of those kept
Section length
8k wordsItem 1A

What the changes say

  • Starbucks added new risks covering trade tariffs, weight-loss drugs, intellectual property, and global brand protection.
  • Climate change disclosures now reference operations across 89 markets and specific weather events.
  • Regulatory compliance risks expanded to include California climate rules and EU sustainability directives.

What changed since the prior 10-K

New

  • NewRisks Related to Brand Relevance and Brand Execution

    The Starbucks brand is recognized throughout most of the world, and we have received high ratings in global brand value studies. To be successful in the future, we believe we must preserve, grow, and leverage the value of our brands across all sales channels

    Adverse developments in execution, macroeconomics, or geopolitics can erode trust in the Starbucks brand value across sales channels.

  • NewRisks Related to Our Business

    Managing growth—particularly in international markets—requires balancing local autonomy with consistency in our goals, policies, and standards. Ineffectively balancing these imperatives could materially harm our business results and financial performance

    Ineffectively balancing local autonomy with international growth or failing to successfully integrate large acquisitions could cause asset impairments.

  • NewRisks Related to Our Business

    resulted, and may in the future result, in insufficient or excess inventory, increased inventory markdowns, and higher costs. Any of these outcomes could adversely affect our results of operations and financial condition

    Health concerns and shifting consumer behaviors, including the use of weight-loss drugs, could reduce demand for caffeine, dairy, and sugar.

  • NewRisks Related to Our Business

    cannibalize sales from nearby existing locations. Failure to manage these risks could result in increased costs and lower-than-expected sales and earnings, materially affecting our operating results

    Opening new stores may cannibalize sales from existing locations, and store remodels could exceed projected costs or underperform.

  • NewRisks Related to Operating a Global Business

    We are dependent on the performance of licensed and company-owned international markets to achieve our growth targets

    The International segment is a critical profit center dependent on regional licensees and key company-owned markets outside North America.

  • NewRisks Related to Supply Chain

    We are subject to risks from changes to the trade policies and tariff and import/export regulations by the U.S. and other foreign governments

    Changes in trade policies, tariffs, import/export restrictions, and sanctions by the U.S. and foreign governments could disrupt business operations.

  • NewRisks Related to Competition

    In packaged coffee, tea, and ready-to-drink segments, competition from well-funded players may affect Channel Development profitability

    Competition from well-funded players in packaged coffee, tea, and ready-to-drink segments may affect Channel Development profitability.

  • NewRisks Related to Intellectual Property

    We also seek to maintain certain intellectual property as trade secrets. The secrecy of such trade secrets and other sensitive information could be compromised, which could cause us to lose the competitive advantage resulting from these trade secrets

    Compromised trade secrets, third-party intellectual property infringement claims, or licensee misconduct could harm our competitive advantage.

Dropped

  • Dropped

    Summary of Risks Associated with Our Business

    Summary of risks associated with our business.

  • DroppedRisks Related to Our Business

    Our investments to transform and enhance the customer experience, including through technology, may not generate the expected results

  • DroppedRisks Related to Operating a Global Business

    We are increasingly dependent on the success of certain international markets in order to achieve our growth targets

  • DroppedRisks Related to Macroeconomic Conditions

    Economic conditions in the U.S. and international markets have adversely affected, and could continue to adversely affect, our business and financial results

  • DroppedRisks Related to Regulation and Litigation

    results 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

    Investments in customer experience and technology may not generate expected results.

  • DroppedRisks Related to Regulation and Litigation

    These 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

Reworded

  • 100% rewrittenRisks Related to Brand Relevance and Brand Execution

    Our success depends substantially on the value of our brand, and failure to preserve its value could have a negative impact on our financial results

    Added explicit mention of potential negative financial impacts resulting from a failure to preserve brand value.

    Was: Our success depends substantially on the value of our brands, and failure to preserve their value could have a negative impact on our financial results

  • 100% rewrittenRisks Related to Our Business

    Evolving 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

    Added a note that the company has previously been unable to accurately predict consumer demand for products.

  • 100% rewrittenRisks Related to Responsible Business Matters

    Our business is subject to evolving corporate governance and public disclosure regulations and expectations, including with respect to responsible business matters, that could expose us to numerous risks

    Expanded to specifically cite California climate change disclosures, EU CSRD, and packaging extended producer responsibility obligations.

    Was: Our 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

  • 100% rewrittenRisks Related to Responsible Business Matters

    Climate change may have an adverse impact on our business

    Updated to reflect operations in 89 global markets and specific vulnerabilities to wildfires, droughts, and extreme weather.

  • 99% rewrittenRisks Related to Competition

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

    Added specifics regarding competitors offering products at or below company prices, requiring increased advertising or lower prices.

  • 99% rewrittenRisks Related to Our Business

    Reported incidents involving food- or beverage-borne illnesses, tampering, adulteration, contamination, or mislabeling, whether or not accurate, could harm our business

    Added specific risks regarding reliance on third-party suppliers, clean water access in international markets, and temperature control failures.

  • 99% rewrittenRisks Related to Responsible Business Matters

    Certain 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

    Expanded activist shareholder risks to include uncertainty about strategic direction, strained stakeholder relationships, and talent recruitment.

  • 99% rewrittenRisks Related to Supply Chain

    Our supply chain may be unable to fully support current and future business needs

    Added specific risks that overestimating demand for new products can result in inventory write-offs.

  • 99% rewrittenRisks Related to Supply Chain

    Increases 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

  • 98% rewrittenRisks Related to Brand Relevance and Brand Execution

    We may not be successful in our brand, marketing, promotional, advertising, and pricing strategies

    Was: We may not be successful in our marketing strategies, promotional and advertising plans, and pricing strategies

  • 98% rewrittenRisks Related to Cybersecurity, Data Privacy, and Information Technology

    We 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

  • 98% rewrittenRisks Related to Supply Chain

    Interruption 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

  • 97% rewrittenRisks Related to Operating a Global Business

    Our reliance on key business partners may adversely affect our business and operations

  • 97% rewrittenRisks Related to Cybersecurity, Data Privacy, and Information Technology

    Failure 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

  • 97% rewrittenRisks Related to Operating a Global Business

    We are highly dependent on the financial performance of our North America operating segment

  • 97% rewrittenRisks Related to Our Business

    If 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

  • 96% rewrittenRisks Related to Regulation and Litigation

    Failure to comply with applicable laws and changing legal and regulatory requirements could harm our business and financial results

  • 95% rewrittenRisks Related to Intellectual Property

    Failure 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

  • 95% rewrittenRisks Related to Our Business

    We may not be successful in implementing important strategic initiatives (including our restructuring plan), effectively managing growth, or executing strategic transactions, any of which may have an adverse impact on our business and financial results

    Was: We 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

  • 93% rewrittenRisks Related to Regulation and Litigation

    We have been, and could continue to be, party to litigation or other legal proceedings that could adversely affect our business, results, operations, and reputation

  • 91% rewrittenRisks Related to Operating a Global Business

    We face risks as a global business that could adversely affect our financial performance

  • 84% rewrittenRisks Related to Our Business

    If 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

  • 81% rewrittenRisks Related to Macroeconomic Conditions

    Our financial condition and results of operations have been, and may continue to be, adversely affected by a number of macroeconomic and other factors, many of which are largely outside our control

    Was: Our 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

  • 27% rewrittenRisks Related to Macroeconomic Conditions

    Failure to meet market expectations for our financial performance or any announced guidance 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

    Was: Failure 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

All 34 risk factors

Headings as the filing states them, in filing order.

Risks Related to Brand Relevance and Brand Execution

  1. 01Our success depends substantially on the value of our brand, and failure to preserve its value could have a negative impact on our financial results100% rewritten
  2. 02The Starbucks brand is recognized throughout most of the world, and we have received high ratings in global brand value studies. To be successful in the future, we believe we must preserve, grow, and leverage the value of our brands across all sales channelsNew
  3. 03We may not be successful in our brand, marketing, promotional, advertising, and pricing strategies98% rewritten

Risks Related to Our Business

  1. 04We may not be successful in implementing important strategic initiatives (including our restructuring plan), effectively managing growth, or executing strategic transactions, any of which may have an adverse impact on our business and financial results95% rewritten
  2. 05Managing growth—particularly in international markets—requires balancing local autonomy with consistency in our goals, policies, and standards. Ineffectively balancing these imperatives could materially harm our business results and financial performanceNew
  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 business100% rewritten
  4. 07resulted, and may in the future result, in insufficient or excess inventory, increased inventory markdowns, and higher costs. Any of these outcomes could adversely affect our results of operations and financial conditionNew
  5. 08If 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 suffer84% rewritten
  6. 09Reported incidents involving food- or beverage-borne illnesses, tampering, adulteration, contamination, or mislabeling, whether or not accurate, could harm our business99% rewritten
  7. 10If we are unable to meet our projections for new store openings or efficiently maintain the attractiveness of our existing stores, our operating results could suffer97% rewritten
  8. 11cannibalize sales from nearby existing locations. Failure to manage these risks could result in increased costs and lower-than-expected sales and earnings, materially affecting our operating resultsNew

Risks Related to Operating a Global Business

  1. 12We are highly dependent on the financial performance of our North America operating segment97% rewritten
  2. 13We are dependent on the performance of licensed and company-owned international markets to achieve our growth targetsNew
  3. 14We face risks as a global business that could adversely affect our financial performance91% rewritten
  4. 15Our reliance on key business partners may adversely affect our business and operations97% rewritten

Risks Related to Supply Chain

  1. 16Increases 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 results99% rewritten
  2. 17Our supply chain may be unable to fully support current and future business needs99% rewritten
  3. 18We are subject to risks from changes to the trade policies and tariff and import/export regulations by the U.S. and other foreign governmentsNew
  4. 19Interruption 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 profitability98% rewritten

Risks Related to Macroeconomic Conditions

  1. 20Our financial condition and results of operations have been, and may continue to be, adversely affected by a number of macroeconomic and other factors, many of which are largely outside our control81% rewritten
  2. 21Failure to meet market expectations for our financial performance or any announced guidance 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 stock27% rewritten

Risks Related to Human Capital

  1. 22The 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. 23Changes in the availability and cost of labor could adversely affect our business

Risks Related to Competition

  1. 24We face intense competition in each of our channels and markets, which could lead to reduced profitability99% rewritten
  2. 25In packaged coffee, tea, and ready-to-drink segments, competition from well-funded players may affect Channel Development profitabilityNew

Risks Related to Responsible Business Matters

  1. 26Climate change may have an adverse impact on our business100% rewritten
  2. 27Our business is subject to evolving corporate governance and public disclosure regulations and expectations, including with respect to responsible business matters, that could expose us to numerous risks100% rewritten
  3. 28Certain 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 price99% rewritten

Risks Related to Regulation and Litigation

  1. 29Failure to comply with applicable laws and changing legal and regulatory requirements could harm our business and financial results96% rewritten
  2. 30We have been, and could continue to be, party to litigation or other legal proceedings that could adversely affect our business, results, operations, and reputation93% rewritten

Risks Related to Cybersecurity, Data Privacy, and Information Technology

  1. 31Failure 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 penalties97% rewritten
  2. 32We 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 results98% rewritten

Risks Related to Intellectual Property

  1. 33Failure 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 business95% rewritten
  2. 34We also seek to maintain certain intellectual property as trade secrets. The secrecy of such trade secrets and other sensitive information could be compromised, which could cause us to lose the competitive advantage resulting from these trade secretsNew

Other Starbucks 10-Ks

  • FY2024 10-K risk factors
    32 risks

    Starbucks faces heavy risks from coffee commodity price volatility, supply chain disruptions, and shifting consumer discretionary spending habits. International expansion, labor cost inflation, and intense retail competition heavily influence operating results.

    Filed Nov 20, 2024

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.