《星巴克咖啡 (Starbucks) 2022财年年度报告(英文版)(100页).pdf》由会员分享,可在线阅读,更多相关《星巴克咖啡 (Starbucks) 2022财年年度报告(英文版)(100页).pdf(100页珍藏版)》请在三个皮匠报告上搜索。
1、Fiscal 202Annual Report2UNITED STATES SECURITIES AND EXCHANGE COMMISSIONWashington,DC 20549Form 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACTOF 1934For the Fiscal Year Ended October 2,2022 orTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANG
2、EACT OF 1934For the transition period from to .Commission File Number:000-20322 Starbucks Corporation(Exact Name of Registrant as Specified in its Charter)Washington91-1325671(State of Incorporation)(IRS Employer ID)2401 Utah Avenue South,Seattle,Washington 98134(206)447-1575(Address of principal ex
3、ecutive office,zip code,telephone number)Securities Registered Pursuant to Section 12(b)of the Act:Title of Each ClassTrading SymbolName of Each Exchange on Which RegisteredCommon Stock,$0.001 par value per shareSBUXNasdaq Global Select MarketSecurities Registered Pursuant to Section 12(g)of the Act
4、:NoneIndicate by check mark if the registrant is a well-known seasoned issuer,as defined in Rule 405 of the Securities Act.Yes x No Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d)of the Act.Yes No xIndicate by check mark whether the re
5、gistrant:(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 during the preceding 12 months(or for such shorter period that the registrant was required to file such reports),and(2)has been subject to such filing requirements for the past 90 days
6、.Yes x No Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the registrant was required to submi
7、t such files).Yes x No Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or an emerging growth company.See the definitions of“large accelerated filer,”“accelerated filer,”“smaller reporting company”and“
8、emerging growth company”in Rule 12b-2 of the Exchange Act.Large accelerated filerxAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth companyIf an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period for com
9、plying with any new or revised financial accounting standards provided pursuant to Section 13(a)of the Exchange Act.Indicate by check mark whether the registrant has filed a report on and attestation to its managements assessment of the effectiveness of its internal control over financial reporting
10、under Section 404(b)of the Sarbanes-Oxley Act(15 U.S.C.7262(b)by the registered public accounting firm that prepared or issued its audit report.xIndicate by check mark whether the registrant is a shell company(as defined in Rule 12b-2 of the Act).Yes No xThe aggregate market value of the voting stoc
11、k held by non-affiliates of the registrant as of the last business day of the registrants most recently completed second fiscal quarter,based upon the closing sale price of the registrants common stock on April 3,2022 as reported on the Nasdaq Global Select Market was$104.8 billion.As of November 11
12、,2022,there were 1,147.8 million shares of the registrants Common Stock outstanding.DOCUMENTS INCORPORATED BY REFERENCEPortions of the definitive Proxy Statement for the registrants Annual Meeting of Shareholders to be held on March 23,2023 have been incorporated by reference into Part III of this A
13、nnual Report on Form 10-K.STARBUCKS CORPORATIONForm 10-KFor the Fiscal Year Ended October 2,2022 TABLE OF CONTENTSPART IItem 1Business2Item 1ARisk Factors10Item 1BUnresolved Staff Comments21Item 2Properties22Item 3Legal Proceedings22Item 4Mine Safety Disclosures22PART IIItem 5Market for the Registra
14、nts Common Equity,Related Shareholder Matters and Issuer Purchases of Equity Securities23Item 6Reserved25Item 7Managements Discussion and Analysis of Financial Condition and Results of Operations26Item 7AQuantitative and Qualitative Disclosures About Market Risk40Item 8Financial Statements and Suppl
15、ementary Data41Index for Notes to Consolidated Financial Statements46Report of Independent Registered Public Accounting Firm80Item 9Changes in and Disagreements with Accountants on Accounting and Financial Disclosure82Item 9AControls and Procedures82Item 9BOther Information84Item 9CDisclosure Regard
16、ing Foreign Jurisdictions that Prevent Inspections84PART IIIItem 10Directors,Executive Officers and Corporate Governance85Item 11Executive Compensation85Item 12Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters85Item 13Certain Relationships and Related Tra
17、nsactions and Director Independence85Item 14Principal Accountant Fees and Services85PART IVItem 15Exhibits and Financial Statement Schedules86Item 16Form 10-K Summary92SIGNATURES93CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTSThis Annual Report on Form 10-K includes“forward-looking”statements
18、within the meaning of the Private Securities Litigation Reform Act of 1995.Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts.They often include words such as“believes,”“expects,”“anticipates,”“estimates,”“intends,”“plans,”“seeks”
19、or words of similar meaning,or future or conditional verbs,such as“will,”“should,”“could,”“may,”“aims,”“intends,”or“projects.”A forward-looking statement is neither a prediction nor a guarantee of future events or circumstances and those future events or circumstances may not occur.You should not pl
20、ace undue reliance on forward-looking statements,which speak only as of the date of this Annual Report on Form 10-K.These forward-looking statements are all based on currently available operating,financial and competitive information and are subject to various risks and uncertainties.Our actual futu
21、re results and trends may differ materially depending on a variety of factors,including,but not limited to,the risks and uncertainties discussed under“Risk Factors”and“Managements Discussion and Analysis of Financial Condition and Results of Operations.”Given these risks and uncertainties,you should
22、 not rely on forward-looking statements as a prediction of actual results.Any or all of the forward-looking statements contained in this Annual Report on Form 10-K and any other public statement made by us,including by our management,may turn out to be incorrect.We are including this cautionary note
23、 to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for forward-looking statements.We expressly disclaim any obligation to update or revise any forward-looking statements,whether as a result of new information,future events or
24、otherwise,except as required by law.Given these risks and uncertainties,readers are cautioned not to place undue reliance on such forward-looking statements.Starbucks Corporation 2022 Form 10-K 1PART IItem 1.Business GeneralIn this Annual Report on Form 10-K(“10-K”or“Report”)for the fiscal year ende
25、d October 2,2022(“fiscal 2022”),Starbucks Corporation(together with its subsidiaries)is referred to as“Starbucks,”the“Company,”“we,”“us”or“our.”Starbucks is the premier roaster,marketer and retailer of specialty coffee in the world,operating in 83 markets.Formed in 1985,Starbucks Corporations common
26、 stock trades on the Nasdaq Global Select Market(“Nasdaq”)under the symbol“SBUX.”We purchase and roast high-quality coffees that we sell,along with handcrafted coffee,tea and other beverages and a variety of high-quality food items through company-operated stores.We also sell a variety of coffee and
27、 tea products and license our trademarks through other channels,such as licensed stores as well as grocery and foodservice through our Global Coffee Alliance with Nestl S.A.(“Nestl”).In addition to our flagship Starbucks Coffee brand,we sell goods and services under the following brands:Teavana,Seat
28、tles Best Coffee,Ethos,Starbucks Reserve and Princi.Our primary objective is to maintain Starbucks standing as one of the most recognized and respected brands in the world.We believe the continuous investments in our brand and operations will deliver long-term targeted revenue and income growth.This
29、 includes expansion of our global store base,adding stores in both existing,developed markets such as the U.S.and in higher growth markets such as China,as well as optimizing the mix of company-operated and licensed stores around the world.In addition,by leveraging experiences gained through our sto
30、res and elsewhere,we continue to drive beverage,equipment,process and technology innovation,including in our industry-leading digital platform.We strive to regularly offer consumers new,innovative coffee and other products in a variety of forms,across new categories,diverse channels and alternative
31、store formats.Starbucks has always been a different kind of company one deep with purpose,where we work together to create a positive impact in the world.With coffee at our core,we pursue ambitious goals for our partners(employees),our communities and our planet because we believe it is our role and
32、 responsibility to create a thriving business powered by thriving people for a thriving planet and communities.Starbucks work to uplift one another extends well beyond our partners to the communities where we do business around the world.We are committed to responsible and ethical sourcing led by Co
33、ffee and Farmer Equity(C.A.F.E.)Practices,the companys third-party verification program and the cornerstone of our approach to ethical sourcing coffee,as well as a more sustainable,resilient future for our planet and for our communities.Human Capital ManagementWe invest in the well-being the mental,
34、physical and financial health of every partner through our practices,policies and benefits.This work is grounded in the belief that we are at our best when we create inclusive and welcoming environments,where we uplift one another with dignity,respect and kindness.And we are hard at work uplifting o
35、ur communities and building environments in our stores that are welcoming and safe.We believe the strength of our workforce is one of the significant contributors to our success as a global brand that leads with purpose.Therefore,one of our core strategies is to invest in and support our partners to
36、 differentiate our brand,products and services in the competitive specialty coffee market,including the following areas of focus:Oversight and ManagementWe recognize the diversity of customers,partners and communities and believe in creating an inclusive and equitable environment that represents a b
37、road spectrum of backgrounds and cultures.Working under these principles,our Partner Resources Organization is tasked with managing employment-related matters,including recruiting and hiring,onboarding and training,compensation planning,performance management and professional development.Our Board o
38、f Directors(the“Board”)and Board committees provide oversight on certain human capital matters,including our Inclusion and Diversity programs and initiatives.As noted in its charter,our Compensation and Management Development Committee is responsible for periodically reviewing Starbucks partner reso
39、urce programs and initiatives,including healthcare and other benefits,as well as our management development and succession planning practices and strategies.Our Audit and Compliance Committee works closely with the Risk Management Committee,led by Starbucks cfo and general counsel,to monitor and mit
40、igate current and emerging labor and human capital management risks.Furthermore,our Nominating and Corporate Governance Committee,in consultation with management,including our chief partner officer and chief inclusion and diversity officer,annually evaluates the effectiveness of our social responsib
41、ility policies,goals and programs,which also include partner-related issues.These reports and recommendations to the Board and its committees are part of the broader framework that guides how Starbucks should attract,retain and develop a skilled workforce that aligns with our values and strategies.W
42、e regularly conduct anonymous surveys to seek feedback from our partners on a variety of topics,including confidence in company leadership,competitiveness of our compensation and benefits package,career growth opportunities and recommendations on how we can remain an employer of choice.The results a
43、re shared with our partners and reviewed by 2 Starbucks Corporation 2022 Form 10-Ksenior leadership,who analyze areas of progress or deterioration and prioritize actions and activities in response to this feedback to drive meaningful improvements in partner engagement.Our management and cross-functi
44、onal teams also work closely to evaluate human capital management issues such as partner retention,workplace safety,harassment and bullying,as well as to implement measures to mitigate these risks.Diversity,Equity and InclusionWe are committed to creating a welcoming and inclusive environment.We bel
45、ieve it is our responsibility to advance racial and social equity,and we are committed to furthering that work with intention,transparency and accountability.We continue to welcome our partners,customers,civil rights and community leaders,along with our chief inclusion and diversity officer,to advis
46、e us along this journey.Starbucks has made specific racial equity commitments based on our principles of being intentional,transparent and accountable at all levels:Being intentional in cultivating a culture of inclusion,with a focus on partner retention and development.Expanding our mentorship prog
47、ram designed to foster and deepen understanding of inclusion,diversity,equity and accessibility and provide partners in corporate and retail roles,including Black,Indigenous andpeople of color(“BIPOC”)and lesbian,gay,bisexual,transgender,queer and/or questioning(“LGBTQ+”)partners,development opportu
48、nities and connections with senior leaders.Being transparent in our approach to Inclusion and Diversity goal setting and progress.Publicly sharing workforce diversity data.Setting annual Inclusion and Diversity goals based on retention rates and progress towards achieving BIPOCrepresentation.Our goa
49、l is for at least 30%of all corporate roles and at least 40%of all retail andmanufacturing roles to be held by BIPOC partners in the U.S.by 2025.Holding ourselves accountable at the highest levels of the organization.Incorporating metrics focused on building inclusive and diverse teams into our exec
50、utive compensationprograms.Joining the Board Diversity Action Alliance to act alongside other companies similarly committed toincreasing racially and ethnically diverse representation on corporate boards.Publicizing self-identified race/ethnicity/gender of each member of our Board.Total RewardsWe ha
51、ve demonstrated a history of investing in our workforce by offering competitive salaries and wages by continuously assessing the current business environment and labor market.We have consistently made enhancements in wages in order to attract talent to support our growth strategy and to elevate the
52、customer experience.To foster a stronger sense of ownership and align the interests of partners with shareholders,restricted stock units are provided to eligible non-executive partners under our broad-based stock incentive programs.Furthermore,we offer comprehensive,locally relevant and innovative b
53、enefits to all eligible partners.In the U.S.,our largest and most mature market,these include:Comprehensive health insurance coverage is offered to partners working an average of 20 hours or more each week.100%upfront tuition coverage is offered through the Starbucks College Achievement Plan for par
54、tners to earn a first-time bachelors degree online at Arizona State University.100%paid parental leave is available to new parents that welcome a child through birth,adoption or foster placementand work an average of 20 hours or more each week.A Partner and Family Sick Time program is provided and a
55、llows partners to accrue paid sick time based on hoursworked and use that time for themselves or family members in need of care.CareWork benefit provides partners with backup care benefits for children and adults at a small cost to partners,aswell as free unlimited senior care planning services.This
56、 benefit includes up to 30 days of backup care servicesthrough the end of fiscal 2022,in light of the COVID-19 pandemic.We view mental health as a fundamental part of our humanity and provide a comprehensive suite of related programsand benefits.These include a free subscription to Headspace,an onli
57、ne application that enables guided mediation,and20 free mental health therapy or coaching sessions annually with Lyra.Starbucks Corporation 2022 Form 10-K 3Outside of the U.S.,we have provided other innovative benefits to help address market-specific needs,such as providing interest-free loans to ou
58、r U.K.partners to help cover rental deposits,mental health services in Canada,and in China,a monthly housing subsidy for full-time Starbucks baristas and shift supervisors,as well as comprehensive health insurance coverage for parents of partners.Role-based SupportTo help our partners succeed in the
59、ir roles,we emphasize continuous training and development opportunities.These include,but are not limited to,safety and security protocols,updates on new products and service offerings and deployment of technologies.Training provided through our Pour Over sessions,which are a series of inspiring tal
60、ks with thought leaders to help partners understand how to bring the Starbucks Experience to life,include a wide variety of topics such as achievable goal setting,giving and receiving constructive feedback and effective engagement with customers and communities.To help further promote an inclusive c
61、ulture and to better serve our customers,we encourage U.S.-based partners to enroll in the To Be Welcoming courses we created in partnership with Arizona State University to address different forms of bias and discrimination.Pay EquityTo be an employer of choice and maintain the strength of our work
62、force,we consistently assess the current business environment and labor market to refine our compensation and benefits programs and other resources available to our partners.We previously achieved and currently maintain 100 percent pay equity in the U.S.for women and men and people of all races for
63、partners performing similar work.We have also achieved gender pay equity in China and Canada,two of our largest markets outside of the U.S.,and we made a commitment to achieve gender pay equity in all company-operated markets.Further,we have formulated pay-equity principles which provide equal footi
64、ng,transparency and accountability as best practices that help address known,systemic barriers to global pay equity.As of October 2,2022,Starbucks employed approximately 402,000 people worldwide.In the U.S.,Starbucks employed approximately 258,000 people,with approximately 248,000 in company-operate
65、d stores and the remainder in corporate support,store development,roasting,manufacturing,warehousing and distribution operations.Approximately 144,000 employees were employed outside of the U.S.,with approximately 140,000 in company-operated stores and the remainder in regional support operations.So
66、me Starbucks partners in company-operated stores are represented by unions,though it is an immaterial portion of our total workforce.We believe our efforts in managing our workforce have been effective,evidenced by a strong Starbucks culture and a good relationship between the company and our partne
67、rs.Information about our Executive OfficersNameAgePositionHoward Schultz69interim chief executive officerLaxman Narasimhan55chief executive officer-electMichael Conway56group president,International and Channel DevelopmentZabrina Jenkins52acting executive vice president and general counselRachel Rug
68、geri53executive vice president,chief financial officer Howard Schultz is the founder of Starbucks Corporation and has served as interim chief executive officer and a member of the Starbucks Board since April 2022.Mr.Schultz previously served as chairman of the Board of Starbucks since its inception
69、in 1985 and until June 2018,and since 2018 has held the role of founder and chairman emeritus of Starbucks.He also previously served as chief executive officer from January 2008 to April 2017 and from November 1985 to June 2000,and as president from January 2008 until March 2015 and from November 19
70、85 to June 1994.From June 2000 to February 2005,Mr.Schultz also held the title of chief global strategist.Mr.Schultz also held leadership and director roles with Il Giornale Coffee Company and Starbucks Coffee Company,which were predecessors to Starbucks.Laxman Narasimhan joined Starbucks as its chi
71、ef executive officer-elect on October 1,2022.Prior to joining Starbucks,Mr.Narasimhan served as Chief Executive Officer of Reckitt Benckiser Group Plc(“Reckitt”),a FTSE 12 listed British multinational consumer health,hygiene and nutrition company,since September 2019.Prior to joining Reckitt,Mr.Nara
72、simhan held various roles at PepsiCo from 2012 to 2019.He served as PepsiCos Group Chief Commercial Officer until July 2019,and prior to that beginning in 2012 served as Chief Executive Officer-Latin America,Europe and Sub-Saharan Africa,Chief Executive Officer-Latin America and Chief Financial Offi
73、cer of PepsiCo Americas Foods.Prior to joining PepsiCo,Mr.Narasimhan spent 19 years at McKinsey&Company,where he focused on its consumer,retail and technology practices in the U.S.,Asia and India.Mr.Narasimhan currently serves on the Board of Directors of Verizon Communications,Inc.,a NYSE-listed te
74、lecommunications company.Mr.Narasimhan is a trustee of the Brookings Institution and a member of the Council onForeign Relations.4 Starbucks Corporation 2022 Form 10-KMichael Conway joined Starbucks in March 2013 and was named group president,International and Channel Development in June 2021,where
75、he is responsible for leading Starbucks retail growth and operations in over 80 markets across Asia Pacific,Europe,Middle East and Africa,Latin America and the Caribbean and growth for the Global Channel Development business,which consists of consumer packaged goods,ready-to-drink businesses and str
76、ategic partnerships,including those with Nestl,PepsiCo and other key business partners.Prior to this,he served as executive vice president and president,International Licensed Markets,from March 2020 to June 2021.He also served as executive vice president and president,Starbucks Canada,executive vic
77、e president and president for Starbucks Licensed Stores business for the United States and Latin America and executive vice president and president of Starbucks Global Channel Development from December 2014 to March 2020.He currently serves on the Board of Directors of McCormick&Company,Incorporated
78、,a NYSE-listed spice and extract manufacturing company.Zabrina Jenkins joined the Starbucks legal department in 2005 and was named acting executive vice president and general counsel in April 2022,where she leads legal and regulatory affairs,global security and ethics and compliance for the company.
79、Prior to being named acting executive vice president,she served as senior vice president,deputy general counsel from February 2020 to April 2022.She previously held roles as senior vice president,deputy general counsel,interim chief ethics and compliance officer,lead legal advisor for Teavana and wa
80、s a member of the Starbucks 2018 Philadelphia incident crisis management response team.She serves as an independent board director for Retail Opportunity Investments Corp.,a Nasdaq-listed national manager of retail shopping centers,and is a member of the Board of Trustees for Central Washington Univ
81、ersity.Rachel Ruggeri joined Starbucks in 2001 as a member of the accounting team and was named executive vice president and chief financial officer in February 2021.In this leadership role,Rachel is responsible for the global finance function for Starbucks,which includes developing and executing th
82、e financial strategies that enable the long-term growth of the Company.Prior to her promotion in 2021,she served as senior vice president of Americas with responsibility for the retail portfolio across the segment,including company-operated and licensed stores from June 2020 to January 2021.From Sep
83、tember 2016 to June 2020,she held various leadership roles in finance both internal and external to Starbucks,including Chief Financial Officer of Continental Mills from July 2018 to May 2020 and prior to that she was senior vice president of Finance at Starbucks in support of the Americas and Globa
84、l Retail from September 2016 to June 2018.She also served as vice president of Finance from December 2010 to September 2016 supporting Corporate Financial Planning&Analysis and the U.S.Retail business.Segment Financial InformationSegment information is prepared on the same basis that our management
85、reviews financial information for operational decision-making purposes.We have three reportable operating segments:1)North America,which is inclusive of the U.S.and Canada;2)International,which is inclusive of China,Japan,Asia Pacific,Europe,Middle East,Africa,Latin America and Caribbean;and 3)Chann
86、el Development.Non-reportable operating segments and unallocated corporate expenses are reported within Corporate and Other.Revenues from our reportable operating segments as a percentage of total net revenues for fiscal 2022 were as follows:North America(72%),International(22%)and Channel Developme
87、nt(6%).Our North America and International segments include both company-operated and licensed stores.Our North America segment is our most mature business and has achieved significant scale.Certain markets within our International operations are in various stages of development and may require more
88、 extensive support,relative to their current levels of revenue and operating income,than our North America operations.Our Channel Development segment includes roasted whole bean and ground coffees,Seattles Best Coffee,Starbucks-and Teavana-branded single-serve products,a variety of ready-to-drink be
89、verages,such as Frappuccino and Starbucks Doubleshot,foodservice products and other branded products sold worldwide outside of our company-operated and licensed stores.A large portion of our Channel Development business operates under a licensed model of the Global Coffee Alliance with Nestl,while o
90、ur global ready-to-drink businesses operate under collaborative relationships with PepsiCo,Inc.,Tingyi-Ashi Beverages Holding Co.,Ltd.,Arla Foods amba,Nestl and others.Starbucks Corporation 2022 Form 10-K 5Revenue ComponentsWe generate the majority of our revenues through company-operated stores and
91、 licensed stores.Company-operated and Licensed Store Summary as of October 2,2022:North AmericaAs a%of TotalNorth America StoresInternationalAs a%of TotalInternational StoresTotalAs a%ofTotal StoresCompany-operated stores10,216 59%8,037 44%18,253 51%Licensed stores7,079 41%10,379 56%17,458 49%Total1
92、7,295 100%18,416 100%35,711 100%The mix of company-operated versus licensed stores in a given market generally varies based on several factors,including our ability to access desirable local retail space,the complexity,profitability and expected ultimate size of the market for Starbucks and our abil
93、ity to leverage the support infrastructure within a geographic region.Company-operated StoresRevenue from company-operated stores accounted for 82%of total net revenues during fiscal 2022.Our retail objective is to be the leading retailer and brand of coffee and tea in each of our target markets by
94、selling the finest quality coffee,tea and related products,as well as complementary food offerings,and by providing each customer with a unique Starbucks Experience.The Starbucks Experience is built upon superior customer service,convenience and a seamless digital experience as well as safe,clean an
95、d well-maintained stores that reflect the personalities of the communities in which they operate,thereby building a high degree of customer loyalty.Our strategy for expanding our global retail business is to increase our category share in a disciplined manner,by selectively opening additional stores
96、 in new and existing markets,as well as increasing sales in existing stores,to support our long-term strategic objective to maintain Starbucks standing as one of the most recognized and respected brands in the world.Store growth in specific existing markets will vary due to many factors,including ex
97、pected financial returns,the maturity of the market,economic conditions,consumer behavior and local business environment.Company-operated store data for the fiscal year-ended October 2,2022:Stores Open as ofStores Open as ofOct 3,2021OpenedClosedTransfersNetOct 2,2022North America:U.S.8,947 437(116)
98、(3)318 9,265 Canada908 44(6)38 946 Siren Retail6 (1)(1)5Total North America9,861 481(123)(3)355 10,216 International:China5,358 724(63)661 6,019 Japan1,546 102(18)84 1,630 U.K.298 29(6)(3)20 318 All Other65 2(2)65 Siren Retail5 5 Total International7,272 857(89)(3)765 8,037 Total company-operated17,
99、133 1,338(212)(6)1,120 18,253 Starbucks company-operated stores are typically located in high-traffic,high-visibility locations.Our ability to vary the size and format of our stores allows us to locate them in or near a variety of settings,including downtown and suburban retail centers,office buildi
100、ngs,university campuses and rural and off-highway locations.We are continuing the expansion of our stores,particularly drive-thru formats that provide a higher degree of access and convenience,and alternative store formats,which are designed to provide a more streamlined customer experience in dense
101、 metropolitan areas.In fiscal 2022,we announced our plan in the U.S.market to increase efficiency while elevating the partner and customer experience(the“Reinvention Plan”).We believe the investments in partner wages and trainings will increase retention and 6 Starbucks Corporation 2022 Form 10-Kpro
102、ductivity while the acceleration of purpose-built store concepts and innovations in technologies will provide additional convenience and connection with our customers.In our major international markets,we also continue to invest in technology and establish partnerships with third parties with releva
103、nt expertise to increase digital adoption to provide convenience and elevate the customer experience.In China,we leverage platforms such as Starbucks NowTM stores to enable a seamless integration of physical and digital customer touchpoints.Orders may be placed in advance through the Starbucks Mobil
104、e App or Starbucks DeliversTM and can be conveniently picked up by customers and delivery providers in these express retail format locations.These strategies align closely with rapidly evolving customer preferences,including higher levels of mobile ordering,more contactless pick-up experiences and r
105、educed in-store congestion,all of which naturally allow for greater physical distancing.We announced plans to invest in a digital third place that will offer members access to new benefits,a digital community and immersive coffee experiences,giving our customers new ways to experience and connect wi
106、th Starbucks.We believe our continued efforts to transform our store portfolio and elevate technology will enhance the customer experience and position Starbucks for long-term growth.Retail sales mix by product type for company-operated stores:Fiscal Year EndedOct 2,2022Oct 3,2021Sep 27,2020Beverage
107、s 74%74%75%Food 22%21%20%Other(1)4%5%5%Total 100%100%100%(1)“Other”primarily consists of sales of packaged and single-serve coffees and teas,serveware and ready-to-drinkbeverages,among other items.Stored Value Cards and Loyalty ProgramThe Starbucks Card,our branded stored value card program,is desig
108、ned to provide customers with a convenient payment method,support gifting and increase the frequency of store visits by cardholders,in part through the related Starbucks Rewards loyalty program where available,as discussed below.Stored value cards are issued to customers when they initially load the
109、m with an account balance.They can be obtained in our company-operated and most licensed stores in North America,China,Japan and many of our markets in our International segment.Stored value cards can also be obtained online,via the Starbucks Mobile App and through other U.S.and international retail
110、ers.Customers may access their card balances by utilizing their stored value card or the Starbucks Mobile App in participating stores.In nearly all markets,including the U.S.and Canada,customers who register their Starbucks Cards are automatically enrolled in the Starbucks Rewards program.Registered
111、 members can receive various benefits depending on factors such as the number of reward points(“Stars”)earned.In addition to using their Starbucks Cards,Starbucks Rewards members can earn Stars by paying with cash,credit or debit cards,or selected mobile wallets at all company-operated stores and a
112、majority of licensed stores in North America.Using the Mobile Order and Pay functionality of the Starbucks Mobile App,customers can also place orders in advance for pick-up at certain participating locations in several markets.Refer to Note 1,Summary of Significant Accounting Policies and Estimates,
113、included in Item 8 of Part II of this 10-K,for further discussion of our stored value cards and loyalty program.Licensed StoresRevenues from our licensed stores accounted for 11%of total net revenues in fiscal 2022.Licensed stores generally have a lower gross margin and a higher operating margin tha
114、n company-operated stores.Under the licensed model,Starbucks receives a margin on branded products and supplies sold to the licensed store operator along with a royalty on retail sales.Licensees are responsible for operating costs and capital investments,which more than offset the lower revenues we
115、receive under the licensed store model.In our licensed store operations,we seek to leverage the expertise of our local partners and share our operating and store development experience.Licensees provide improved,and at times the only,access to desirable retail space.Most licensees are prominent reta
116、ilers with in-depth market knowledge and access.As part of these arrangements,we sell coffee,tea,food and related products to licensees for resale to customers and receive royalties and license fees from the licensees.We also sell certain equipment,such as coffee brewers and espresso machines,to our
117、 licensees for use in their operations.Licensee employees working in licensed retail locations are required to follow our detailed store operating procedures and attend training classes similar to those given to employees in company-operated stores.In a limited number of international markets,we als
118、o use traditional franchising and include these stores in the results of operations from our other licensed stores.Starbucks Corporation 2022 Form 10-K 7Licensed store data for the fiscal year-ended October 2,2022:Stores Open as ofStores Open as ofOct 3,2021OpenedClosedTransfersNetOct 2,2022North Am
119、erica:U.S.6,497 217(109)3111 6,608 Canada468 27(24)3 471 Total North America6,965 244(133)3114 7,079 International:Korea1,611 168(29)139 1,750 Latin America1,437 115(3)112 1,549 U.K.791 74(30)347 838 Turkey559 50(5)45 604 Taiwan523 30(9)21 544 Indonesia487 48(12)36 523 Thailand425 27(6)21 446 Philip
120、pines401 19(2)17 418 All Other3,501 394(188)206 3,707 Total International9,735 925(284)3644 10,379 Total licensed16,700 1,169(417)6758 17,458 Other Revenues Other revenues primarily are recorded in our Channel Development segment and include sales of packaged coffee,tea and ready-to-drink beverages
121、to customers outside of our company-operated and licensed stores,as well as royalties received from Nestl under the Global Coffee Alliance and other collaborative partnerships.Product SupplyStarbucks is committed to selling the finest whole bean coffees and coffee beverages.To help ensure compliance
122、 with our rigorous coffee standards,we generally control substantially all coffee purchasing,roasting and packaging and the global distribution of coffee used in our operations.Nestl controls distribution of certain finished goods through the Global Coffee Alliance.We purchase green coffee beans fro
123、m multiple coffee-producing regions around the world and custom roast them to our exacting standards for our many blends and single-origin coffees.The price of coffee is subject to significant volatility.Although most coffee trades in the commodity market,high-altitude arabica coffee of the quality
124、sought by Starbucks tends to trade on a negotiated basis at a premium above the“C”coffee commodity price.Both the premium and the commodity price depend upon the supply and demand at the time of purchase.Supply and price can be affected by multiple factors in the producing countries,including weathe
125、r,water supply quality and availability throughout the coffee production chain,natural disasters,crop disease and pests,general increase in farm inputs and costs of production,inventory levels and political and economic conditions.Climate change may further exacerbate many of these factors.Price is
126、also impacted by trading activities in the arabica coffee futures market,including hedge funds and commodity index funds.In addition,green coffee prices have been affected in the past,and may be affected in the future,by the actions of certain organizations and associations that have historically at
127、tempted to influence prices of green coffee through agreements establishing export quotas or by restricting coffee supplies.We buy coffee using fixed-price and price-to-be-fixed purchase commitments,depending on market conditions,to secure an adequate supply of quality green coffee.We also utilize f
128、orward contracts,futures contracts and collars to hedge“C”price exposure under our price-to-be-fixed green coffee contracts and our long-term forecasted coffee demand where underlying fixed-price and price-to-be-fixed contracts are not yet available.Total purchase commitments,together with existing
129、inventory,are expected to provide an adequate supply of green coffee through fiscal 2023.We depend upon our relationships with coffee producers,outside trading companies and exporters for our supply of green coffee.We believe,based on relationships established with our suppliers,the risk of non-deli
130、very on such purchase commitments is remote.To help ensure the future supply of high-quality green coffee and to reinforce our leadership role in the coffee industry,Starbucks operates ten farmer support centers,including our China Farmer Support Center located in the Yunnan Province of 8 Starbucks
131、Corporation 2022 Form 10-Kthis high-growth market.Farmer support centers are staffed with agronomists and sustainability experts who work with coffee farming communities to promote best practices in coffee production designed to improve both coffee quality and yields and agronomy support to address
132、climate change and other impacts.In addition to coffee,we also purchase significant amounts of dairy and plant-based dairy-free alternative products,particularly fluid milk,oat milk and almond milk to support the needs of our company-operated stores.We believe,based on relationships established with
133、 our dairy and plant-based dairy-free suppliers,that the risk of non-delivery of sufficient fluid milk and plant-based dairy-free alternatives to support our stores generally is remote.Products other than whole bean coffees and coffee beverages sold in Starbucks stores include tea and a number of re
134、ady-to-drink beverages that are purchased from several specialty suppliers,usually under long-term supply contracts.Food products,such as pastries,breakfast sandwiches and lunch items,are purchased from national,regional and local sources.We also purchase a broad range of paper and plastic products,
135、such as cups and cutlery,from several companies to support the needs of our retail stores as well as our manufacturing and distribution operations.We are also expanding our use of reusable packaging to reduce landfill waste.We believe,based on relationships established with these suppliers and manuf
136、acturers,that the risk of non-delivery of sufficient amounts of these items generally is remote.During fiscal 2021 and continuing into fiscal 2022,we experienced certain supply shortages and transportation delays largely attributable to impacts of the COVID-19 pandemic as well as changes in customer
137、 demand and behaviors.While we expect these shortages and delays may continue into fiscal 2023,we view them to be temporary and do not believe they will have a material impact to our long-term growth and profitability.CompetitionOur primary competitors for coffee beverage sales are specialty coffee
138、retailers and shops.We believe that our customers choose among specialty coffee retailers and shops primarily on the basis of product quality,brand reputation,service and convenience,as well as price.We continue to experience direct competition from large competitors in the quick-service restaurant
139、sector and the ready-to-drink coffee beverage market,in addition to both well-established and start-up companies in many international markets.We also compete with restaurants and other specialty retailers for prime retail locations and qualified personnel to operate both new and existing stores.Our
140、 coffee and tea products sold through our Channel Development segment compete directly against specialty coffees and teas sold through grocery stores,warehouse clubs,specialty retailers,convenience stores and foodservice accounts and compete indirectly against all other coffees and teas on the marke
141、t.Trademarks,Copyrights,Patents and Domain NamesStarbucks owns and has applied to register numerous trademarks and service marks in the U.S.and in other countries throughout the world.Some of our trademarks,including Starbucks,the Starbucks logo,Starbucks Reserve and Frappuccino are of material impo
142、rtance.The duration of trademark registrations varies from country to country.However,trademarks are generally valid and may be renewed indefinitely as long as they are in use and/or their registrations are properly maintained.We own numerous copyrights for items such as product packaging,promotiona
143、l materials,in-store graphics and training materials.We also hold patents on certain products,systems and designs which have an average remaining useful life of approximately seven years.In addition,Starbucks has registered and maintains numerous Internet domain names,including“S,”“S”and“S.”Seasonal
144、ity and Quarterly ResultsOur business is subject to moderate seasonal fluctuations,of which our second fiscal quarter typically experiences lower revenues and operating income.The COVID-19 pandemic has had an impact on consumer behaviors and customer traffic;however,it is not yet certain that these
145、changes will sustain and cause other than temporary changes in the seasonal fluctuations of our business.Additionally,as Starbucks Cards are issued to and loaded by customers during the holiday season,we tend to have higher cash flows from operations during the first quarter of the fiscal year.Howev
146、er,since revenues from Starbucks Cards are recognized upon redemption and not when cash is loaded onto the Card,the impact of seasonal fluctuations on the consolidated statements of earnings is much less pronounced.As a result of moderate seasonal fluctuations,results for any quarter are not necessa
147、rily indicative of the results that may be achieved for the full fiscal year.Government Regulation As a company with global operations,we are subject to the laws and regulations of the United States and the multiple foreign jurisdictions in which we operate as well as the rules,reporting obligations
148、 and interpretations of all such requirements and obligations by various governing bodies,which may differ among jurisdictions.In addition,changes to such laws,regulations,rules,reporting obligations and related compliance obligations could result in significant costs but are not expected to have a
149、material effect on our capital expenditures,results of operations and competitive position as compared to prior periods.Starbucks Corporation 2022 Form 10-K 9Available InformationStarbucks Annual Report on Form 10-K reports,along with all other reports and amendments filed with or furnished to the S
150、ecurities and Exchange Commission(the“SEC”),are publicly available free of charge on the Investor Relations section of our website at as soon as reasonably practicable after these materials are filed with or furnished to the SEC.In addition,the SEC maintains an internet site that contains reports,pr
151、oxy and information statements and other information regarding issuers that file electronically with the SEC at www.sec.gov.We also use our website as a tool to disclose important information about the company and comply with our disclosure obligations under Regulation Fair Disclosure.Our corporate
152、governance policies,code of ethics and Board committee charters and policies are also posted on the Investor Relations section of Starbucks website.The information on our website(or any webpages referenced in this Annual Report on Form 10-K)is not part of this or any other report Starbucks files wit
153、h,or furnishes to,the SEC.Item 1A.Risk Factors You should carefully consider the risks described below in addition to the other information set forth in this Annual Report on Form 10-K,including the Managements Discussion and Analysis of Financial Conditions and Results of Operations section,the Qua
154、ntitative and Qualitative Disclosures About Market Risk section and the consolidated financial statements and related notes.If any of the risks and uncertainties described in the cautionary factors described below actually occur or continue to occur,our business,financial condition and results of op
155、erations and the trading price of our common stock could be materially and adversely affected.The considerations and risks that follow are organized within relevant headings but may be relevant to other headings as well.Moreover,the risks below are not the only risks we face and additional risks not
156、 currently known to us or that we presently deem immaterial may emerge or become material at any time and may negatively impact our business,reputation,financial condition,results of operations or the trading price of our common stock.Risks Related to Macroeconomic Conditions Our financial condition
157、 and results of operations are subject to,and may be adversely affected by,a number ofmacroeconomic and other factors,many of which are also largely outside our control.Our operating results have been in the past and will continue to be subject to a number of macroeconomic and other factors,many of
158、which are largely outside our control.Any one or more of the factors listed below or described elsewhere in this risk factors section could have a material adverse impact on our business,financial condition and/or results of operations:increases in real estate costs in certain domestic and internati
159、onal markets;inflationary pressures;disruptions to our supply chain;changes in governmental rules and approaches to taxation;fluctuations in foreign currency exchange rates;adverse outcomes of litigation;severe weather or other natural or man-made disasters affecting a large market or several closel
160、y located markets thatmay temporarily but significantly affect our retail business in such markets;changes in climate,including changes to the frequency of severe weather events,that impact the price and availabilityor cost of goods and services,energy and other materials throughout our supply chain
161、;and especially in our largest markets,including the U.S.and China,labor discord or disruption,geopolitical events,war,terrorism(including incidents targeting us),political instability,acts of public violence,boycotts,increasing anti-American sentiment in certain markets,hostilities and social unres
162、t and other health pandemics that lead to avoidanceof public places or restrictions on public gatherings such as in our stores.Economic conditions in the U.S.and international markets could adversely affect our business and financial results.As a retailer that is dependent upon consumer discretionar
163、y spending,our results of operations are sensitive to changes in or uncertainty about macroeconomic conditions.A continued economic downturn or recession,or slowing or stalled recovery therefrom,may have a material adverse effect on our business,financial condition or results of operations.Our custo
164、mers may have or in the future have less money for discretionary purchases and may stop or reduce their purchases of our products or switch to Starbucks or competitors lower-priced products as a result of various factors,including job losses,inflation,higher taxes,reduced access to credit,changes in
165、 federal economic policy,the COVID-19 pandemic and recent international trade disputes.Due to the COVID-19 pandemic or other global health events,we may experience a reduction and increased volatility in demand for our products.Such reductions and volatility may be caused by,among other things:store
166、 closures or modified operating hours and business model,reduced customer traffic due to illness,quarantine or government or self-imposed 10 Starbucks Corporation 2022 Form 10-Krestrictions placed on our stores operations,impacts caused by precautionary measures such as those related to face coverin
167、gs and vaccinations and changes in consumer spending behaviors,including those caused by social distancing,a decrease in consumer confidence in general macroeconomic conditions and a decrease in consumer discretionary spending.Decreases in customer traffic and/or average value per transaction withou
168、t a corresponding decrease in costs would put downward pressure on margins and would negatively impact our financial results.There is also a risk that if negative economic conditions or uncertainty,as a result of the COVID-19 pandemic or any other public health emergency,persist for a long period of
169、 time or worsen,consumers may make long-lasting changes to their discretionary purchasing behavior,including less frequent discretionary purchases on a more permanent basis or there may be a general downturn in the restaurant industry.These and other macroeconomic factors could have an adverse effec
170、t on our sales,profitability or development plans,which could harm our results of operations and financial condition.Failure to meet market expectations for our financial performance and fluctuations in the stock market as a whole willlikely adversely affect the market price and volatility of our st
171、ock.Failure to meet market expectations going forward,particularly with respect to our operational and financial results,and expectations regarding the success of our Reinvention Plan and related guidance,environmental performance and shareholder returns,will likely result in a decline and/or increa
172、sed volatility in the market price of our stock.In addition,price and volume fluctuations in the stock market as a whole may affect the market price of our stock in ways that may be unrelated to our financial performance.Risks Related to COVID-19 Our financial condition and results of operations hav
173、e been and are expected to continue to be adversely affected by theCOVID-19 pandemic.The COVID-19 pandemic has had,and is continuing to have,a significant impact on our business and results of operations.At the peak of the COVID-19 outbreak,many of our company-operated and licensed stores were close
174、d.For stores that remained open,same-store sales declined due to modified operating hours and reduced customer traffic.While nearly all of our company-operated and licensed stores have reopened,we expect that certain parts of our operations will continue to be impacted by the continuing effects of C
175、OVID-19,including resurgences and variants of the virus.Our China market experienced unprecedented COVID-19 pandemic-related restrictions in multiple cities that severely impacted customer mobility.It remains difficult to predict the full impact of the COVID-19 pandemic on the broader economy and ho
176、w consumer behavior may change,and whether such change is temporary or permanent.Social distancing,telecommuting and reductions in travel may become the new normal.In addition,the COVID-19 pandemic has required and may continue to require us to make controversial decisions about precautionary measur
177、es,such as vaccinations,showing proof of vaccinations and face coverings,that could impact our results,including by impacting our brand,our employee retention and satisfaction and the willingness of customers to buy our products.All of these conditions could fundamentally impact the way we work and
178、the services we provide,and could have continuing adverse effects on our financial performance.As a result,we may incur additional impairment charges to our inventory,store and corporate assetsand our ability to realize the benefits from deferred tax assets may become limitedany of which may have a
179、significant or material impact on our financial results.Prolonged volatility or significant disruption of global financial markets due in part to the COVID-19 pandemic could have a negative impact on our ability to access capital markets and other funding sources,on acceptable terms or at all and im
180、pede our ability to comply with debt covenants.Risks Related to Our BusinessIf 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.Our global business strategy,including
181、our plans for new stores,branded products and other initiatives,relies significantly on a variety of business partners,including licensee and joint venture relationships,third-party manufacturers,distributors and retailers,particularly for our entire global Channel Development business.Licensees,ret
182、ailers and foodservice operators are often authorized to use our logos and provide branded food,beverage and other products directly to customers.We believe our customers expect the same quality of service regardless of whether they visit a licensed or company-operated store,so we provide training a
183、nd support to,and monitor the operations of,certain of these licensees and other business partners.However,the product quality and service they deliver may still be diminished by any number of factors beyond our control,including financial constraints,adherence to sanitation protocols and guidance(i
184、ncluding those resulting from the COVID-19 pandemic),labor shortages and other factors.We do not have direct control over our business partners and may not have visibility into their practices.Starbucks Corporation 2022 Form 10-K 11We also source our food,beverage and other products from a wide vari
185、ety of domestic and international business partners,and in certain cases such products are produced or sourced by our licensees directly.And although foodservice operators are authorized to use our logos and provide branded products as part of their foodservice business,we do not monitor the quality
186、 of non-Starbucks products served in those locations.Additionally,inconsistent uses of our brand and other of our intellectual property assets,as well as failure to protect our intellectual property,can erode consumer trust and our brand value and have a material negative impact on our financial res
187、ults.Incidents involving food or beverage-borne illnesses,tampering,adulteration,contamination or mislabeling,whether ornot accurate,as well as adverse public or medical opinions about the health effects of consuming our products,couldharm our business.Instances or reports,whether true or not,of unc
188、lean water supply or food-safety issues,such as food or beverage-borne illnesses,tampering,adulteration,contamination or mislabeling,either during growing,manufacturing,packaging,storing or preparation,have in the past severely injured the reputations of companies in the food and beverage processing
189、,grocery and quick-service restaurant sectors.Any report linking us to such instances could severely hurt our sales and could possibly lead to product liability claims,litigation(including class actions)and/or temporary store closures.Clean water is critical to the preparation of coffee,tea and othe
190、r beverages,as well as ice for our cold beverages,and our ability to ensure adequate supplies of clean water and ice to our stores can be limited,particularly in some international locations.We are also continuing to incorporate more products in our food and beverage lineup that require freezing or
191、refrigeration,which increases the risk of food safety related incidents if correct temperatures are not maintained due to mechanical malfunction or human error.We also face risk by relying on third-party food suppliers to provide and transport ingredients and finished products to our stores.While we
192、 monitor the operations of certain of these business partners,the product quality and service they deliver may be diminished by any number of factors beyond our control and it may be difficult to detect contamination or other defects in these products.There is greater risk from those we do not monit
193、or,or do not monitor as closely.Furthermore,due to the COVID-19 pandemic,there are stricter health regulations and guidelines and increased public concern over food safety standards and controls.Potential food safety incidents,whether at our stores or involving our business partners,could lead to wi
194、de public exposure,which could materially harm our business.Additionally,we are evolving our product lineup to include more local or smaller suppliers for some of our products who may not have as rigorous quality and safety systems and protocols as larger or more national suppliers,especially in lig
195、ht of the heightened safety protocols as a result of the COVID-19 pandemic.In addition,instances of food or beverage-safety issues,even those involving solely the restaurants or stores of competitors or of suppliers or distributors(regardless of whether we use or have used those suppliers or distrib
196、utors),could adversely affect our sales on a regional or global basis by resulting in negative publicity about us or the foodservice industry in general.A decrease in customer traffic as a result of food-safety concerns or negative publicity,or as a result of a temporary closure of any of our stores
197、,product recalls,viral-contaminated food or beverage claims or other food or beverage-safety claims or litigation,could materially harm our business and results of operations.We may not be successful in implementing important strategic initiatives or effectively managing growth,which may havean adve
198、rse impact on our business and financial results.There is no assurance that we will be able to implement important strategic initiatives in accordance with our expectations or that they will generate expected returns,which may result in an adverse impact on our business and financial results.These s
199、trategic initiatives,which includes our Reinvention Plan,are designed to create growth,improve our results of operations and drive long-term shareholder value,and include:being an employer of choice and investing in employees to deliver a superior customer experience;building our leadership position
200、 around coffee;driving convenience,brand engagement and digital relationships through our mobile,loyalty,delivery and digitalcapabilities both domestically and internationally;simplifying store administrative tasks to allow store partners to better engage with customers;increasing the scale of the S
201、tarbucks store footprint with disciplined global expansion and introducing flexible andunique store formats,including the accelerated development of alternative store formats(such as Starbucks Pickupstores,Starbucks Now stores and curbside pickup)especially in light of the COVID-19 pandemic;adjustin
202、g rapidly to changing customer preferences and behaviors in light of the COVID-19 pandemic,inflation andchanging economic conditions;moving to a more licensed store model in some markets and a more company-operated model in certain markets;12 Starbucks Corporation 2022 Form 10-K creating new occasio
203、ns in stores across all dayparts with new product offerings,including our growing lunch food andbeverage product lineup;continuing the global growth of our Channel Development business through our supply,distribution and licensingagreements with Nestl and other Channel Development business partners;
204、delivering continued growth in our cold beverage business;working to address the potential effects of climate change and the sustainability of our business;and reducing our operating costs,particularly general and administrative expenses.In addition to other factors listed in this risk factors secti
205、on,factors that may adversely affect the successful implementation of these initiatives,which could have a material adverse impact on our business and financial results,include the following:imposition of additional taxes by jurisdictions,such as on certain types of beverages or based on number ofem
206、ployees;construction cost increases associated with new store openings and remodeling of existing stores;delays in storeopenings for reasons beyond our control,such as potential shortages of materials and labor and delays in permits,or alack of desirable real estate locations available for lease at
207、reasonable rates,either of which could keep us frommeeting annual store opening targets in the U.S.and internationally;governmental regulations or other health guidelines concerning operations of stores,including due to the COVID-19pandemic or other public health emergencies;not successfully scaling
208、 our supply chain infrastructure as our product offerings increase and as we continue to expand,including our emphasis on a broad range of high-quality food offerings;not successfully adapting to customer or market factors affecting our supply chain as we work to address sustainabilityand climate ch
209、ange;and the deterioration in our credit ratings,which could limit the availability of additional financing and increase the cost ofobtaining financing to fund our initiatives.Effectively managing growth can be challenging,particularly as we expand in international markets where we must balance the
210、need for flexibility and a degree of autonomy for local management against the need for consistency with our goals,policies and standards.If we are not successful in implementing our strategic initiatives,or,in the event we undertake large acquisitions,integrations and divestitures,we may be require
211、d to evaluate whether certain assets,including goodwill and other intangibles,have become impaired.In the event we record an impairment charge,it could have a material impact on our financial results.Evolving consumer preferences and tastes may adversely affect our business.Our continued success dep
212、ends on our ability to attract and retain customers.Our financial results could be adversely affected by a shift in consumer spending away from outside-the-home food and beverages(such as the disruption caused by online commerce that results in reduced foot traffic to“brick&mortar”retail stores);lac
213、k of customer acceptance of new products(including due to price increases necessary to cover the costs of new products or higher input costs),brands(such as the global expansion of the Starbucks brand)and platforms(such as features of our mobile technology,changes in our loyalty rewards programs,the
214、 Starbucks Odyssey experience and our delivery services initiatives);or customers reducing their demand for our current offerings as new products are introduced.In addition,some of our products contain caffeine,dairy products,sugar and other compounds and allergens,the health effects of which are th
215、e subject of public and regulatory scrutiny,including the suggestion of linkages to a variety of adverse health effects.Particularly in the U.S.,there is increasing consumer awareness of health risks,including obesity,as well as increased consumer litigation based on alleged adverse health impacts o
216、f consumption of various food and beverage products.While we have a variety of beverage and food items,including items that are coffee-free and have reduced calories,an unfavorable report on the health effects of caffeine or other compounds present in our products,whether accurate or not,imposition
217、of additional taxes on certain types of food and beverage components,or negative publicity or litigation arising from certain health risks could significantly reduce the demand for our beverages and food products and could materially harm our business and results of operations.Furthermore,our financ
218、ial results have been and could continue to be adversely affected by the impact of the COVID-19 pandemic,which has resulted in a disruption of customer routines,changes to employer“work-from-home”policies,reduced business and recreational travel and changes in consumer behavior and the ability or wi
219、llingness to spend discretionary income on our products.Starbucks Corporation 2022 Form 10-K 13 Our success depends substantially on the value of our brands and failure to preserve their value could have a negativeimpact on our financial results.We believe we have built an excellent reputation globa
220、lly for the quality of our products,for delivery of a consistently positive consumer experience and for our global social and environmental impact programs.The Starbucks brand is recognized throughout most of the world,and we have received high ratings in global brand value studies.To be successful
221、in the future,particularly outside of the U.S.where the Starbucks brand and our other brands are less well-known,we believe we must preserve,grow and leverage the value of our brands across all sales channels.Brand value is based in part on consumer perceptions on a variety of subjective qualities.B
222、usiness incidents,whether isolated or recurring and whether originating from us or our business partners,that erode consumer trust can significantly reduce brand value,potentially trigger boycotts of our stores or result in civil or criminal liability and can have a negative impact on our financial
223、results.Such incidents include actual or perceived breaches of privacy or violations of domestic or international privacy laws,contaminated food,product recalls,store employees or other food handlers infected with communicable diseases,such as COVID-19,safety-related incidents or other potential inc
224、idents discussed in this risk factors section.The impact of such incidents may be exacerbated if they receive considerable publicity,including rapidly through social or digital media(including for malicious reasons)or result in litigation.Consumer demand for our products and our brand equity could d
225、iminish significantly if we,our employees,licensees or other business partners fail to preserve the quality of our products,act or are perceived to act in an unethical,illegal,racially-biased,unequal or socially irresponsible manner,including with respect to the sourcing,content or sale of our produ
226、cts,service and treatment of customers at Starbucks stores,treatment of employees or the use of customer data for general or direct marketing or other purposes.Furthermore,if we are not effective in addressing our social and environmental program goals,executing on our Reinvention Plan,or achieving
227、relevant sustainability goals,consumer trust in our brand may suffer,and this perception could result in negative publicity or litigation.Additionally,if we fail to comply with laws and regulations,take controversial positions or actions or fail to deliver a consistently positive consumer experience
228、 in each of our markets,including by failing to invest in the right balance of wages and benefits to attract and retain employees that represent the brand well or to foster an inclusive and diverse environment,our brand value may be diminished.The ongoing relevance of our brand may depend on the suc
229、cess of our social and environmental program goals as well as the success of the Reinvention Plan,which requires company-wide coordination and alignment.We are working to manage risks and costs to us,our licensees and our supply chain of any effects of climate change as well as diminishing energy an
230、d water resources.These risks include any increased public focus,including by governmental and nongovernmental organizations,on these and other environmental sustainability matters,including packaging and waste,animal health and welfare,deforestation and land use.These risks may also include any inc
231、reased pressure to make commitments,set targets or establish additional goals and take actions to meet them,which could expose us to market,operational and execution costs or risks.We may not be successful in our marketing,promotional and advertising plans and pricing strategies.Our continued succes
232、s depends in part on our ability to adjust our marketing,promotional and advertising plans and pricing strategy to respond quickly and effectively to shifting economic and competitive conditions as well as evolving customer preferences.We operate in a complex and costly marketing,promotional and adv
233、ertising environment.Our marketing,promotional and advertising programs may not be successful in reaching our customers in the way we intend.Our success depends in part on whether the allocation of our advertising,promotional and marketing resources across different channels,including digital market
234、ing,allows us to reach our customers effectively and efficiently,and in ways that are meaningful to them.If the advertising,promotional and marketing programs or our pricing strategies are not successful,or are not as successful as those of our competitors,our sales and market share could decrease.F
235、inally,customers are focusing more on sustainability and the environmental impacts of operations.An inability to meet customer expectations with respect to these issues could adversely affect our financial results.Risks Related to Cybersecurity and Data Privacy Failure to maintain satisfactory compl
236、iance with certain privacy and data protections laws and regulations may subject usto substantial negative financial consequences and civil or criminal penalties.Complex local,state,national,foreign and international laws and regulations apply to the collection,use,retention,protection,disclosure,tr
237、ansfer and other processing of personal data.These privacy and data protection laws and regulations are quickly evolving,with new or modified laws and regulations proposed and implemented frequently and existing laws and regulations subject to new or different interpretations and enforcement.In addi
238、tion,our legal and regulatory obligations in jurisdictions outside the U.S.are subject to unexpected changes,including the potential for regulatory or other governmental entities to enact new or additional laws or regulations,to issue rulings that invalidate prior laws or regulations or to increase
239、penalties Risks Related to Brand Relevance and Brand Execution14 Starbucks Corporation 2022 Form 10-Ksignificantly.Complying with these laws and regulations can be costly and can impede the development and offering of new products and services.For example,Europes General Data Protection Regulation(“
240、GDPR”)and the U.K.General Data Protection Regulation(which implements the GDPR into U.K.law),impose stringent data protection requirements and provide for significant penalties for noncompliance.Additionally,California enacted legislation,the California Consumer Privacy Act(“CCPA”).The CCPA requires
241、,among other things,covered companies to provide new disclosures to California consumers and allows such consumers new abilities to opt-out of certain sales of personal data.The CCPA also provides for civil penalties for violations as well as a private right of action for data breaches that may incr
242、ease data breach litigation.Further,the California Privacy Rights Act,which was passed in November 2020 and is fully effective in January 2023,significantly modifies the CCPA.Colorado,Connecticut,Utah and Virginia recently enacted similar data privacy legislation that will also take effect in 2023,a
243、nd several other states and countries are considering expanding or passing privacy laws in the near term.These modifications and new laws will require us to incur additional costs and expenses in our efforts to comply.In June 2021,the European Commission published new versions of the Standard Contra
244、ctual Clauses and in March 2022,the U.K.finalized the U.K.International Data Transfer Agreement.The new requirements will require us to incur costs and expenses in order to comply and may impact the transfer of personal data throughout our organization and to third parties.Our failure to comply with
245、 applicable laws and regulations or other obligations to which we may be subject relating to personal data,or to protect personal data from unauthorized access,use or other processing,could result in enforcement actions and regulatory investigations against us,claims for damages by customers and oth
246、er affected individuals,fines,damage to our brand reputation,any of which could have a material adverse effect on our operations,financial performance and business.The unauthorized access,use,theft or destruction of customer or employee personal,financial or other data or ofStarbucks proprietary or
247、confidential information that is stored in our information systems or by third parties on ourbehalf could impact our reputation and brand and expose us to potential liability and loss of revenues.Many of our information technology systems(whether cloud-based or hosted in proprietary servers),includi
248、ng those used for our point-of-sale,web and mobile platforms,online and mobile payment systems,delivery services and rewards programs and administrative functions,contain personal,financial or other information that is entrusted to us by our customers and employees.Many of our information technology
249、 systems also contain Starbucks proprietary and other confidential information related to our business,such as business plans and product development initiatives and designs,and confidential information about third parties,such as licensees and business partners.Similar to many other retail companie
250、s and because of the prominence of our brand,we are consistently subject to attempts to compromise our information technology systems from both internal and external sources.The number and frequency of these attempts varies from year to year but could be exacerbated to some extent by an increase in
251、our digital operations,including our efforts to comply with state and local mandates in response to COVID-19.In addition,we provide some customer and employee data,as well as Starbucks proprietary information and other confidential information important to our business,to third parties where necessa
252、ry to conduct our business,including licensees and business partners.Individuals performing work for Starbucks and such third parties also may possess some of this data,including on personally-owned digital devices.To the extent we,a third party or such an individual were to experience a breach of o
253、ur or their information technology systems that results in the unauthorized access,theft,use,destruction or other compromises of customers or employees data or confidential information of the Company stored in or transmitted through such systems,including through cyber-attacks or other external or i
254、nternal methods,it could result in a material loss of revenues from the potential adverse impact to our reputation and brand,a decrease in our ability to retain customers or attract new ones,the imposition of potentially significant costs(including loss of data or payment for recovery of data)and li
255、abilities,loss of business,loss of business partners and licensees and the disruption to our supply chain,business and plans.Unauthorized access,theft,use,destruction or other compromises may occur through a variety of methods,including attacks using malicious code,those taking advantage of vulnerab
256、ilities in software,hardware or other infrastructure(including systems used by our supply chain),those using techniques aimed at convincing those with access to such data or information to share passwords or otherwise allow access through deceit or otherwise and those taking advantage of inadequate
257、account security practices.Such security breaches also could result in a violation of applicable U.S.and international privacy,cyber and other laws or trigger U.S.state data breach notification laws,and subject us to private consumer,business partner or licensee or securities litigation and governme
258、ntal investigations and proceedings,any of which could result in our exposure to material civil or criminal liability.Significant capital investments and other expenditures could also be required to investigate security incidents,remedy cybersecurity problems,recuperate lost data,prevent future comp
259、romises and adapt systems and practices to react to the changing threat environment.These include costs associated with notifying affected individuals and other agencies,additional security technologies,trainings,personnel,experts and credit monitoring services for those whose data has been breached
260、.These costs,which could be material,could adversely impact our results of operations in the period in which they are incurred,Starbucks Corporation 2022 Form 10-K 15including by interfering with the pursuit of other important business strategies and initiatives,and may not meaningfully limit the su
261、ccess of future attempts to breach our information technology systems.Media or other reports of existing or perceived security vulnerabilities in our systems or those of our third-party business partners or service providers can also adversely impact our brand and reputation and materially impact ou
262、r business.Additionally,the techniques and sophistication used to conduct cyber-attacks and compromise information technology systems,as well as the sources and targets of these attacks,change frequently and are often not recognized until such attacks are launched or have been in place for a period
263、of time.We continue to make significant investments in technology,third-party services and personnel to develop and implement systems and processes that are designed to anticipate cyber-attacks and to prevent or minimize breaches of our information technology systems or data loss,but these security
264、measures cannot provide assurance that we will be successful in preventing such breaches or data loss.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 e
265、ffectively operate and grow our business andcould adversely affect our financial results.We rely heavily on information technology systems across our operations for numerous purposes including for administrative functions,point-of-sale processing and payment in our stores and online,management of ou
266、r supply chain,Starbucks Cards,online business,delivery services,mobile technology,including mobile payments and ordering apps,reloads and loyalty functionality and various other processes and transactions,and many of these systems are interdependent on one another for their functionality.Additional
267、ly,the success of several of our initiatives to drive growth,including our ability to increase digital relationships with our customers to drive incremental traffic and spend,is highly dependent on our technology systems.Furthermore,due to the social distancing measures put in place as a result of t
268、he COVID-19 pandemic,we accelerated the transformation of our store portfolio by expanding convenience-led formats,which depend heavily on our mobile ordering capabilities.We also rely on third-party providers and platforms for some of these information technology systems and support.Additionally,ou
269、r systems hardware,software and services provided by third-party service providers are not fully redundant within a market or across our markets.Although we have operational safeguards in place,they may not be effective in preventing the failure of these systems or platforms to operate effectively a
270、nd be available.Such failures may be caused by various factors,including power outages,climate change-related impacts,catastrophic events,physical theft,computer and network failures,inadequate or ineffective redundancy,problems with transitioning to upgraded or replacement systems or platforms,flaw
271、s in third-party software or services,errors or improper use by our employees or third-party service providers,or a breach in the security of these systems or platforms,including through cyber-attacks such as those that result in the blockage of our or our third-party business partners or service pr
272、oviders systems and platforms and those discussed in more detail in this risk factors section.If our incident response,disaster recovery and business continuity plans do not resolve these issues in an effective and timely manner,they could result in an interruption in our operations and could cause
273、material negative impacts to our product availability and sales,the efficiency of our operations and our financial results.In addition,remediation of any problems with our systems could result in significant,unplanned expenses.Risks Related to Intellectual PropertyWe may not be able to adequately pr
274、otect our intellectual property or adequately ensure that we are not infringing theintellectual property of others,which could harm the value of our brand and our business.The success of our business depends on our continued ability to use our existing trademarks and service marks in order to increa
275、se brand awareness and further develop our branded products in both domestic and international markets.We rely on a combination of trademarks,copyrights,service marks,trade secrets,patents and other intellectual property rights to protect our brand and branded products.We have registered certain tra
276、demarks and have other trademark registrations pending in the U.S.and certain foreign jurisdictions.The trademarks that we currently use have not been registered in all of the countries outside of the U.S.in which we do business or may do business in the future and may never be registered in all of
277、these countries.It may be costly and time consuming to protect our intellectual property,and the steps we have taken to protect our intellectual property in the U.S.and foreign countries may not be adequate.In addition,the steps we have taken may not adequately ensure that we do not infringe the int
278、ellectual property of others,and third parties may claim infringement by us in the future.Any claim of infringement,whether or not it has merit,could be time-consuming,result in costly litigation and harm our business.In addition,we cannot ensure that licensees will not take actions that hurt the va
279、lue of our intellectual property.Risks Related to Supply Chain Our reliance on key business partners may adversely affect our business and operations.The growth of our business relies on the ability of our licensee partners to implement our growth platforms and product innovations as well as on the
280、degree to which we are able to enter into,maintain,develop and negotiate appropriate terms and 16 Starbucks Corporation 2022 Form 10-Kconditions of,and enforce,commercial and other agreements and the performance of our business partners under such agreements.Our international licensees may face capi
281、tal constraints or other factors that may limit the speed at which they are able to expand and develop in a certain market.Our Channel Development business is heavily reliant on Nestl,which has the right to sell and distribute our packaged goods and foodservice products to retailers and operators,wi
282、th few exceptions.If Nestl fails to perform its distribution and marketing commitments under our agreements and/or fails to support,protect and grow our brand in Channel Development,our Channel Development business could be adversely impacted for a period of time,present long-term challenges to our
283、brand,limit our ability to grow our Channel Development business and have a material adverse impact on our business and financial results.Additionally,the growth of our Channel Development business is in part dependent on the level of discretionary support provided by our retail and licensed store b
284、usinesses.There are generally a relatively small number of licensee partners operating in specific markets.If they are not able to access sufficient funds or financing,or are otherwise unable or unwilling to successfully operate and grow their businesses it could have a material adverse effect on ou
285、r results in the markets.Due to the COVID-19 pandemic,our financial results have been and could continue in the future to be adversely affected by the disruption to the operations of our business partners,including licensee relationships,third-party manufacturers,distributors and retailers,through t
286、he effects of business and facilities closures,reductions in operating hours,social,economic,political or labor instability in affected areas,transportation delays,travel restrictions and changes in operating procedures,including for additional cleaning and safety protocols.Increases in the cost of
287、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 and financial results.The availability and prices of coffee beans and other commodities are subject to signif
288、icant volatility.We purchase,roast and sell high-quality whole bean arabica coffee beans and related coffee products.The high-quality arabica coffee of the quality we seek tends to trade on a negotiated basis at a premium above the“C”price.This premium depends upon the supply and demand at the time
289、of purchase and the amount of the premium can vary significantly.Increases in the“C”coffee commodity price increase the price of high-quality arabica coffee and also impact our ability to enter into fixed-price purchase commitments.We frequently enter into supply contracts whereby the quality,quanti
290、ty,delivery period and other negotiated terms are agreed upon,but the date,and therefore price,at which the base“C”coffee commodity price component will be fixed has not yet been established.The supply and price of coffee we purchase can also be affected by multiple factors in the producing countrie
291、s,such as weather,water supply quality and availability throughout the coffee production chain,natural disasters,crop disease and pests,general increase in farm inputs and costs of production,inventory levels,political and economic conditions and the actions of certain organizations and associations
292、 that have historically attempted to influence prices of green coffee through agreements establishing export quotas or by restricting coffee supplies.Climate change may further exacerbate many of these factors.Speculative trading in coffee commodities can also influence coffee prices.For example,dro
293、ught conditions in Brazil have and,given continued drought conditions,are predicted to continue to impact coffee prices.Because of the significance of coffee beans to our operations,combined with our ability to only partially mitigate future price risk through purchasing practices and hedging activi
294、ties,increases in the cost of high-quality arabica coffee beans could have a material adverse impact on our profitability.In addition,if we are not able to purchase sufficient quantities of green coffee due to any of the above factors or due to a worldwide or regional shortage,we may not be able to
295、fulfill the demand for our coffee,which could have a material adverse impact on our business operations and financial performance.We also purchase significant amounts of dairy products,particularly fluid milk,to support the needs of our company-operated retail stores.Additionally,and although less s
296、ignificant to our operations than coffee or dairy,other commodities,including tea and those related to food and beverage inputs,such as cocoa,produce,baking ingredients,meats,eggs and energy,as well as the processing of these inputs,are important to our operations.Increases in the cost of dairy prod
297、ucts and other commodities,or lack of availability,whether due to supply shortages,delays or interruptions in processing,or otherwise,especially in international markets,could have a material adverse impact on our profitability.Similarly,increases in the cost of,or lack of availability,whether due t
298、o supply shortages,delays or interruptions in the processing of plant-based alternatives could have a material adverse impact on our profitability.Interruption of our supply chain could affect our ability to produce or deliver our products and could negatively impactour business and profitability.An
299、y material interruption in our supply chain,such as material interruption of roasted coffee supply due to the casualty loss of any of our roasting plants,interruptions in service by our third-party logistic service providers or common carriers that ship goods within our distribution channels,trade r
300、estrictions,such as increased tariffs or quotas,embargoes or customs restrictions,pandemics,social or labor unrest,labor shortages,natural disasters or political disputes and military conflicts that cause a material disruption in our supply chain could have a negative material impact on our business
301、 and our profitability.Additionally,our food,beverage and other products are sourced from a wide variety of domestic and international business partners in our supply chain operations,and in certain cases are produced or sourced by our licensees directly.We rely on these Starbucks Corporation 2022 F
302、orm 10-K 17suppliers to provide high-quality products and to comply with applicable laws.Our ability to find qualified suppliers who meet our standards and supply products in a timely and efficient manner is a significant challenge as we increase our fresh and prepared food offerings,especially with
303、 respect to goods sourced from outside the U.S.and from countries or regions with diminished infrastructure,developing or failing economies or which are experiencing political instability or social unrest.For certain products,we may rely on one or very few suppliers.A suppliers failure to meet our s
304、tandards,provide products in a timely and efficient manner or comply with applicable laws is beyond our control.These issues could have a material negative impact on our business and profitability.Risks Related to Human Capital Changes in the availability of and the cost of labor could adversely aff
305、ect our business.Our business could be adversely impacted by increases in labor costs,including wages and benefits,which,in a retail business such as ours,are two of our most significant costs,both domestically and internationally,including those increases triggered by state and federal legislation
306、and regulatory actions regarding wages,scheduling and benefits;increased healthcare and workers compensation insurance costs;increased wages and costs of other benefits necessary to attract and retain high-quality employees with the right skill sets and increased wages,benefits and costs related to
307、the COVID-19 pandemic.The growth of our business can make it increasingly difficult to locate and hire sufficient numbers of employees,to maintain an effective system of internal controls for a globally dispersed enterprise and to train employees worldwide to deliver a consistently high-quality prod
308、uct and customer experience,which could materially harm our business and results of operations.Furthermore,we have experienced,and could continue to experience,a shortage of labor for store positions,including due to market trends and conditions such as continued concerns around COVID-19,the availab
309、ility of new telecommuting employment options and other factors,which could decrease the pool of available qualified talent for key functions.Such labor shortages could be further exacerbated by expanded COVID-19 vaccination requirements.In addition,our wages and benefits programs may be insufficien
310、t to attract and retain the best talent.Starting in December 2021,Starbucks partners at company-operated stores in multiple jurisdictions across the U.S.began filing for unionization elections and a number of these stores have now successfully unionized,with potentially more to follow.While the numb
311、er of partners represented by unions is not significant,if a significant portion of our employees were to become unionized,our labor costs could increase and our business could be negatively affected by other requirements and expectations that could increase our costs,change our employee culture,dec
312、rease our flexibility and disrupt our business.Additionally,our responses to any union organizing efforts could negatively impact how our brand is perceived and have adverse effects on our business,including on our financial results.These responses could also expose us to legal risk,causing us to in
313、cur costs to defend legal and regulatory actions,potential penalties and restrictions or reputational harm.The loss of key personnel or difficulties recruiting and retaining qualified personnel could adversely impact our businessand financial results.Much of our future success depends on the continu
314、ed availability and service of senior management personnel.The loss of any of our executive officers or other key senior management personnel could harm our business.Our success also depends substantially on the contributions and abilities of our retail store employees on whom we rely to give custom
315、ers a superior in-store experience and elevate our brand.Accordingly,our performance depends on our ability to recruit and retain high-quality management personnel and other employees to work in and manage our stores,both domestically and internationally.Our ability to attract and retain corporate,r
316、etail and other personnel is also acutely impacted in certain international and domestic markets where the competition for a relatively small number of qualified employees is intense or in markets where large high-tech companies are able to offer more competitive salaries and benefits.Additionally,t
317、here is intense competition for qualified technology systems developers necessary to develop and implement new technologies for our growth initiatives,including increasing our digital relationships with customers.If we are unable to recruit,retain and motivate employees sufficiently to maintain our
318、current business and support our projected growth,our business and financial performance may be adversely affected.Environmental,Social and Governance Risk Factors Our business is subject to evolving corporate governance and public disclosure regulations and expectations,includingwith respect to env
319、ironmental,social and governance matters,that could expose us to numerous risks.We are subject to changing rules and regulations promulgated by a number of governmental and self-regulatory organizations,including the SEC,the Nasdaq Stock Market and the Financial Accounting Standards Board.These rule
320、s and regulations continue to evolve in scope and complexity and many new requirements have been created in response to laws enacted by Congress,making compliance more difficult and uncertain.In addition,increasingly regulators,customers,investors,employees and other stakeholders are focusing on env
321、ironmental,social and governance(“ESG”)matters and related disclosures.These changing rules,regulations and stakeholder expectations have resulted in,and are likely to continue to result in,increased general and administrative expenses and increased management time and attention spent complying with
322、 or meeting such regulations and expectations.For example,developing and acting on initiatives within the scope of ESG,and 18 Starbucks Corporation 2022 Form 10-Kcollecting,measuring and reporting ESG related information and metrics can be costly,difficult and time consuming and is subject to evolvi
323、ng reporting standards,including the SECs recently proposed climate-related reporting requirements,and similar proposals by other international regulatory bodies.We may also communicate certain initiatives and goals,regarding environmental matters,diversity,responsible sourcing and social investment
324、s and other ESG related matters,in our SEC filings or in other public disclosures.These initiatives and goals within the scope of ESG could be difficult and expensive to implement,the technologies needed to implement them may not be cost effective and may not advance at a sufficient pace,and we coul
325、d be criticized for the accuracy,adequacy or completeness of the disclosure.Further,statements about our ESG related initiatives and goals,and progress against those goals,may be based on standards for measuring progress that are still developing,internal controls and processes that continue to evol
326、ve,and assumptions that are subject to change in the future.In addition,we could be criticized for the scope or nature of such initiatives or goals,or for any revisions to these goals.If our ESG-related data,processes and reporting are incomplete or inaccurate,or if we fail to achieve progress with
327、respect to our goals within the scope of ESG on a timely basis,or at all,our reputation,business,financial performance and growth could be adversely affected.Climate change may have an adverse impact on our business.While we seek to mitigate our business risks associated with climate change by estab
328、lishing environmental goals and standards and seeking business partners,including within our supply chain,that are committed to operating in ways that protect the environment or mitigate environmental impacts,we recognize that there are inherent climate-related risks wherever business is conducted.F
329、or example,as we noted above,the supply and price of coffee we purchase can also be affected by multiple factors in the producing countries,such as weather and water supply quality and availability,which factors may be caused by or exacerbated by climate change.We operate in 83 markets globally.Whil
330、e we believe this geographic diversity is likely to lessen the impact of individual climate change related events on our financial results,our properties and operations may nonetheless be vulnerable to the adverse effects of climate change,which are predicted to increase the frequency and severity o
331、f weather events and other natural cycles such as wildfires and droughts.Such events have the potential to disrupt our operations,cause store closures,disrupt the business of our third-party suppliers and impact our customers,all of which may cause us to suffer losses and additional costs to maintai
332、n or resume operations.Risks Related to Competition We face intense competition in each of our channels and markets,which could lead to reduced profitability.The specialty coffee market is intensely competitive,including with respect to product quality,innovation,service,convenience,such as delivery
333、 service and mobile ordering,and price,and we face significant and increasing competition in all of these areas in each of our channels and markets.Accordingly,we do not have leadership positions in all channels and markets.In the U.S.,the ongoing focus by large competitors in the quick-service restaurant sector on selling high-quality specialty coffee beverages could lead to decreases in customer