《星巴克咖啡 (Starbucks) 2023财年第四季度财报(英文版)(138页).pdf》由会员分享,可在线阅读,更多相关《星巴克咖啡 (Starbucks) 2023财年第四季度财报(英文版)(138页).pdf(135页珍藏版)》请在三个皮匠报告上搜索。
1、Table of ContentsUNITED STATES SECURITIES AND EXCHANGE COMMISSIONWashington,DC 20549Form 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the Fiscal Year Ended October 1,2023or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT
2、OF 1934For the transition period from to .Commission File Number:000-20322Starbucks 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 executiv
3、e 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:NoneI
4、ndicate 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 registra
5、nt:(1)has filed all reports required to be filed by Section 13 or 15(d)of the Securities Exchange Act of 1934 duringthe 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 forthe past 90 days.Yes x N
6、o Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 ofRegulation S-T(232.405 of this chapter)during the preceding 12 months(or for such shorter period that the registrant was required to submit suchfil
7、es).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 anemerging growth company.See the definitions of“large accelerated filer,”“accelerated filer,”“smaller reporting company”and“emerging gr
8、owth 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 complying with
9、 any new orrevised 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 controlover financial reporting under Section
10、 404(b)of the Sarbanes-Oxley Act(15 U.S.C.7262(b)by the registered public accounting firm that prepared or issuedits audit report.xIf securities are registered pursuant to Section 12(b)of the Act,indicate by check mark whether the financial statements of the registrant included in the filingreflect
11、the correction of an error to previously issued financial statements.Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received byany of the registrants executive officers during the relevant recovery peri
12、od pursuant to 240.10D-1(b).Indicate 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 stock held by non-affiliates of the registrant as of the last business day of the registrants most recently completedseco
13、nd fiscal quarter,based upon the closing sale price of the registrants common stock on April 2,2023 as reported on the Nasdaq Global Select Market was$117.1 billion.As of November 10,2023,there were 1,136.7 million shares of the registrants Common Stock outstanding.Table of ContentsDOCUMENTS INCORPO
14、RATED BY REFERENCEPortions of the definitive Proxy Statement for the registrants Annual Meeting of Shareholders to be held on March 13,2024 have been incorporated byreference into Part III of this Annual Report on Form 10-K.Table of ContentsSTARBUCKS CORPORATIONForm 10-KFor the Fiscal Year Ended Oct
15、ober 1,2023TABLE OF CONTENTSPART IItem 1Business3Item 1ARisk Factors11Item 1BUnresolved Staff Comments23Item 1CCybersecurity23Item 2Properties23Item 3Legal Proceedings24Item 4Mine Safety Disclosures24PART IIItem 5Market for the Registrants Common Equity,Related Shareholder Matters and Issuer Purchas
16、es of Equity Securities25Item 6Reserved27Item 7Managements Discussion and Analysis of Financial Condition and Results of Operations28Item 7AQuantitative and Qualitative Disclosures About Market Risk41Item 8Financial Statements and Supplementary Data42Index for Notes to Consolidated Financial Stateme
17、nts47Report of Independent Registered Public Accounting Firm81Item 9Changes in and Disagreements with Accountants on Accounting and Financial Disclosure83Item 9AControls and Procedures83Item 9BOther Information85Item 9CDisclosure Regarding Foreign Jurisdictions that Prevent Inspections85PART IIIItem
18、 10Directors,Executive Officers and Corporate Governance86Item 11Executive Compensation86Item 12Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters86Item 13Certain Relationships and Related Transactions and Director Independence86Item 14Principal Accountant
19、 Fees and Services86PART IVItem 15Exhibits and Financial Statement Schedules87Item 16Form 10-K Summary93SIGNATURES94 Table of ContentsCAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTSThis Annual Report on Form 10-K includes“forward-looking”statements within the meaning of the Private Securities L
20、itigation Reform Act of 1995 regardingfuture events and the future results of Starbucks Corporation(together with its subsidiaries)that are based on our current expectations,estimates,forecastsand projections about our business,our results of operations,the industry in which we operate,our economic
21、and market outlook,and the beliefs andassumptions of our management.Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts.Theyoften include words such as“believes,”“expects,”“anticipates,”“estimates,”“intends,”“plans,”“seeks”or words
22、 of similar meaning,or future orconditional verbs,such as“will,”“should,”“could,”“may,”“aims,”“intends,”or“projects.”By their nature,forward-looking statements involve risks,uncertainties,and other factors(many beyond our control)that could cause our actual results to differ materially from our hist
23、orical experience or from ourcurrent expectations or projections.Our forward-looking statements,and the risks and uncertainties related thereto,include,but are not limited to,thosedescribed under the“Risk Factors”and“Managements Discussion and Analysis of Financial Condition and Results of Operation
24、s”sections and in otherreports we file with the U.S.Securities and Exchange Commission(“SEC”),as well as:our ability to preserve,grow and leverage our brands;the acceptance of the companys products and changes in consumer preferences,consumption,or spending behavior and our ability to anticipate or
25、react tothem;shifts in demographic or health and wellness trends;or unfavorable consumer reaction to new products,platforms,reformulations,or other innovations;our anticipated operating expenses,including our anticipated total capital expenditures;the costs associated with,and the successful executi
26、on and effects of,our existing and any future business opportunities,expansions,initiatives,strategies,investments and plans,including our Reinvention Plan;the impacts of partner investments and changes in the availability and cost of labor including any union organizing efforts and our responses to
27、 such efforts;the ability of our business partners,suppliers and third-party providers to fulfill their responsibilities and commitments;higher costs,lower quality,or unavailability of coffee,dairy,energy,water,raw materials,or product ingredients;the impact of significant increases in logistics cos
28、ts;a worsening in the terms and conditions upon which we engage with our manufacturers and source suppliers,whether resulting from broader local or globalconditions,or dynamics specific to our relationships with such parties;unfavorable global or regional economic conditions and related economic slo
29、wdowns or recessions,low consumer confidence,high unemployment,weakcredit or capital markets,budget deficits,burdensome government debt,austerity measures,higher interest rates,higher taxes,political instability,higherinflation,or deflation;inherent risks of operating a global business including geo
30、political instability;failure to attract or retain key executive or partner talent or successfully transition executives;the potential negative effects of incidents involving food or beverage-borne illnesses,tampering,adulteration,contamination or mislabeling;negative publicity related to our compan
31、y,products,brands,marketing,executive leadership,partners,board of directors,founder,operations,businessperformance,or prospects;potential negative effects of a material breach,failure,or corruption of our information technology systems or those of our direct and indirect businesspartners,suppliers
32、or third-party providers,or failure to comply with personal data protection laws;our environmental,social and governance(“ESG”)efforts and any reaction related thereto such as the rise in opposition to ESG and inclusion and diversityefforts;risks associated with acquisitions,dispositions,business pa
33、rtnerships,or investments such as acquisition integration,termination difficulties or costs orimpairment in recorded value;the impact of foreign currency translation,particularly a stronger U.S.dollar;the impact of substantial competition from new entrants,consolidations by competitors,and other com
34、petitive activities,such as pricing actions(includingprice reductions,promotions,discounting,couponing,or free goods),marketing,category expansion,product introductions,or entry or expansion in ourgeographic markets;the impact of changes in U.S.tax law and related guidance and regulations that may b
35、e implemented,including on tax rates and the Inflation Reduction Actof 2022;the impact of health epidemics,pandemics or other public health events on our business and financial results,and the risk of negative economic impacts andrelated regulatory measures or voluntary actions that may be put in pl
36、ace,including restrictions on business operations or social distancing requirements,andthe duration and efficacy of such restrictions;failure to comply with anti-corruption laws,trade sanctions and restrictions or similar laws or regulations;and the impact of significant legal disputes and proceedin
37、gs,or government investigations.In addition,many of the foregoing risks and uncertainties are,or could be,exacerbated by any worsening of the global business and economic environment.Aforward-looking statement is neither a prediction nor a guarantee of future events or1Table of Contentscircumstances
38、,and those future events or circumstances may not occur.You should not place undue reliance on the forward-looking statements,which speakonly as of the date of this report.We are under no obligation to update or alter any forward-looking statements,whether as a result of new information,futureevents
39、 or otherwise.2Table of ContentsPART IItem 1.BusinessGeneralIn this Annual Report on Form 10-K(“10-K”or“Report”)for the fiscal year ended October 1,2023(“fiscal 2023”),Starbucks Corporation(together with itssubsidiaries)is referred to as“Starbucks,”the“Company,”“we,”“us”or“our.”Starbucks is the prem
40、ier roaster,marketer and retailer of specialty coffee in the world,operating in 86 markets.Formed in 1985,Starbucks Corporationscommon 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
41、,tea and other beverages and a variety of high-quality food items through company-operated stores.We also sell a variety ofcoffee and tea products and license our trademarks through other channels,such as licensed stores as well as grocery and foodservice through our GlobalCoffee Alliance with Nestl
42、 S.A.(“Nestl”).In addition to our flagship Starbucks Coffee brand,we sell goods and services under the following brands:Teavana,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 co
43、ntinuousinvestments in our brand and operations will deliver long-term targeted revenue and income growth.This includes expansion of our global store base,addingstores 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 compa
44、ny-operatedand licensed stores around the world.In addition,by leveraging experiences gained through our stores 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,innova
45、tive coffeeand other products in a variety of forms,across new categories,diverse channels and alternative 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 coffeeat our core,we pursue ambiti
46、ous goals for our partners(employees),our communities and our planet,which we believe also contributes to the long-termsustainability of our business to create a thriving business powered by thriving people for a thriving planet and communities.Our work to uplift one anotherextends well beyond our p
47、artners to the communities where we do business around the world.We are committed to responsible and ethical sourcing led byCoffee and Farmer Equity Practices(C.A.F.E.Practices),the Companys third-party verification program and the cornerstone of our approach to ethicalsourcing of coffee with over 9
48、8%of our coffee having been historically verified through C.A.F.E.Practices as ethically sourced.Human Capital ManagementWe invest in the well-being the mental,physical and financial health of every partner through our practices,policies and benefits.This work is grounded inthe belief that we are at
49、 our best when we create inclusive,supportive and welcoming environments,where we uplift one another with dignity,respect andkindness.And we are hard at work uplifting our communities and building environments in our stores that are welcoming and safe.We believe the strength ofour workforce is one o
50、f the significant contributors to our success as a global brand that leads with purpose.Therefore,one of our core strategies is to invest inand support our partners to differentiate our brand,products and services in the competitive specialty coffee market,including the following areas of focus:Over
51、sight and ManagementWe recognize the diversity of customers,partners and communities and believe in creating an inclusive and equitable environment that represents a broadspectrum of backgrounds and cultures.Working under these principles,our Partner Resources Organization is tasked with managing em
52、ployment-relatedmatters,including recruiting and hiring,onboarding and training,compensation planning,performance management and professional development.Our Boardof Directors(the“Board”)and Board committees provide oversight on certain human capital matters,including our Inclusion and Diversity pro
53、grams andinitiatives.As noted in its charter,our Compensation and Management Development Committee is responsible for periodically reviewing Starbucks partnerresource programs and initiatives,including healthcare and other benefits,as well as our management development and succession planning practi
54、ces andstrategies.Our Audit and Compliance Committee works closely with the Risk Management Committee,led by Starbucks cfo and general counsel,to monitorand mitigate current and emerging labor and human capital management risks.Furthermore,our Nominating and Corporate Governance Committee,inconsulta
55、tion with management,annually evaluates the effectiveness of our social responsibility policies,goals and programs,which also include partner-relatedissues.These reports and recommendations to the Board and its committees are part of the broader framework that guides how Starbucks should attract,ret
56、ainand develop a skilled workforce that aligns with our values and strategies.We 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 opportuniti
57、es and3Table of Contentsrecommendations on how we can remain an employer of choice.The results are shared with our partners and reviewed by senior leadership,who analyze areasof progress or deterioration and prioritize actions and activities in response to this feedback to drive meaningful improveme
58、nts in partner engagement.Ourmanagement and cross-functional 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
59、to creating a welcoming,supportive and inclusive environment.We are committed to advancing inclusion and racial and social equity,andwe seek to further that work with intention,transparency and accountability.We continue to welcome our partners,customers,civil rights and communityleaders,along with
60、our senior vice president,talent and inclusion,to advise us along this journey.Starbucks has made specific 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 retenti
61、on and development.Expanding our mentorship program designed to prioritize our partners sense of belonging by creating an inclusive and supportiveenvironment.Mentors offer guidance,encouragement and a safe space for partners to share their experiences,challenges and aspirations.Asof 2023,the program
62、 has welcomed nearly 1,400 partners and was expanded to include U.S.based store and district managers in 2023.Being transparent in our approach to Inclusion and Diversity goal setting and progress.Publicly sharing workforce diversity data.Setting aspirational Inclusion and Diversity goals based on r
63、etention rates and progress towards achieving racial and ethnic diversity.Ourgoal is to achieve racial and ethnic diversity of at least 30%of all corporate roles and at least 40%of all retail and manufacturing roles in theU.S.by 2025,by setting broad recruiting parameters and through inclusive and l
64、egally compliant employment practices.Holding ourselves accountable at the highest levels of the organization.Incorporating our efforts to build and retain inclusive and diverse teams into our executive compensation programs.Joining the Board Diversity Action Alliance to act alongside other companie
65、s similarly committed to increasing diverse representation oncorporate boards.Publicizing self-identified race/ethnicity/gender of each member of our Board.Total RewardsWe have demonstrated a history of investing in our workforce by offering competitive salaries and wages by continuously assessing t
66、he current businessenvironment and labor market.We have consistently made enhancements in wages in order to attract talent to support our growth strategy and to elevate thecustomer experience.To foster a stronger sense of ownership and align the interests of partners with shareholders,restricted sto
67、ck units are provided to eligiblenon-executive partners under our broad-based stock incentive programs.Furthermore,we offer comprehensive,locally relevant and innovative benefits to alleligible partners.In the U.S.,our largest and most mature market,these include:Comprehensive health insurance cover
68、age is offered to partners working an average of 20 hours or more each week.100%upfront tuition coverage through the Starbucks College Achievement Plan for partners to earn a first-time bachelors degree online at ArizonaState University is offered to partners working an average of 20 hours or more e
69、ach week.Our Future Roast 401(k)savings plan helps partners save for their financial goal through convenient payroll deductions.Partners can contribute pre-tax or Roth after-tax dollars,and Starbucks matches 5%of eligible contributions with immediate vesting in those matching contributions.100%paid
70、parental leave is available to new parents that welcome a child through birth,adoption or foster placement and work an average of 20 hoursor more each week.A Partner and Family Sick Time program is provided and allows partners to accrue paid sick time based on hours worked and use that time forthems
71、elves or family members in need of care.4Table of Contents We view mental health as a fundamental part of our humanity and provide a comprehensive suite of related programs and benefits.These include afree subscription to Headspace,an online application that enables guided meditation,and 20 free men
72、tal health therapy or coaching sessions annuallywith Lyra.Outside of the U.S.,we have provided other innovative benefits to help address market-specific needs,such as providing interest-free loans to our U.K.partners to help cover rental deposits,mental health services in Canada,and in China,an extr
73、a 14th Month Pay initiative,giving retail partners an additionalmonths salary as a bonus on top of the 13th month pay that is customary in China,as well as a monthly housing subsidy for full-time Starbucks baristas andshift supervisors,and comprehensive health insurance coverage for parents of partn
74、ers.Role-based SupportTo help our partners succeed in their roles,we emphasize continuous training and development opportunities.These include,but are not limited to,safety andsecurity protocols,updates on new products and service offerings and deployment of technologies.Training provided through ou
75、r Pour Over sessions,whichare a series of inspiring talks with thought leaders to help partners understand how to bring the Starbucks Experience to life,include a wide variety of topicssuch as achievable goal setting,giving and receiving constructive feedback,and effective engagement with customers
76、and communities.To help furtherpromote an inclusive culture and to better serve our customers,we encourage U.S.-based partners to enroll in the To Be Welcoming courses we created inpartnership with Arizona State University to address different forms of bias and discrimination.Pay EquityTo be an empl
77、oyer of choice and maintain the strength of our workforce,we consistently assess the current business environment and labor market to refine ourcompensation and benefits programs and other resources available to our partners.We previously achieved and currently maintain 100 percent pay equity in the
78、 U.S.for women and men and people of all races for partners performing similarwork.We have made a commitment to achieve gender pay equity in all company-operated markets.Further,we have formulated pay-equity principles whichprovide equal footing,transparency and accountability as best practices that
79、 help address known,systemic barriers to global pay equity.As of October 1,2023,Starbucks employed approximately 381,000 people worldwide.In the U.S.,Starbucks employed approximately 228,000 people,withapproximately 219,000 in company-operated stores and the remainder in corporate support,store deve
80、lopment,roasting,manufacturing,warehousing anddistribution operations.Approximately 153,000 employees were employed outside of the U.S.,with approximately 148,000 in company-operated stores and theremainder in regional support operations.Approximately 3.6%of Starbucks partners in U.S.company-operate
81、d stores are represented by unions.We believeour efforts in managing our workforce have been effective,evidenced by improved retention,lower turnover,and employee satisfaction during fiscal 2023.Information about our Executive OfficersNameAgePositionLaxman Narasimhan56chief executive officerMichael
82、Conway57group president,International and Channel DevelopmentSara Kelly44executive vice president and chief partner officerBrad Lerman67executive vice president and general counselRachel Ruggeri54executive vice president and chief financial officerLaxman Narasimhan joined Starbucks as its chief exec
83、utive officer-elect in 2022 and has served as chief executive officer and has been a Starbucks directorsince March 2023.Prior to joining Starbucks,Mr.Narasimhan served as Chief Executive Officer of Reckitt Benckiser Group Plc(“Reckitt”),a FTSE 12 listedBritish multinational consumer health,hygiene,a
84、nd nutrition company,from 2019 to 2022.Prior to joining Reckitt,Mr.Narasimhan held various executiveroles at PepsiCo from 2012 to 2019 including as PepsiCos Group Chief Commercial Officer and as Chief Executive Officer-Latin America,Europe,and Sub-Saharan Africa,Chief Executive Officer-Latin America
85、,and Chief Financial Officer of PepsiCo Americas Foods.Prior to joining PepsiCo,Mr.Narasimhanspent 19 years at McKinsey&Company,where he focused on its consumer,retail,and technology practices in the U.S.,Asia,and India.Mr.Narasimhancurrently serves on the Board of Directors of Verizon Communication
86、s,Inc.,a NYSE-listed telecommunications company.Mr.Narasimhan is a trustee of theBrookings Institution and a member of the Council on Foreign Relations.Michael Conway joined Starbucks in 2013 and was named group president,International and Channel Development in 2021,where he is responsible forleadi
87、ng Starbucks retail growth and operations in over 80 markets across Asia Pacific,Europe,Middle East and Africa,Latin America and the Caribbean andgrowth for the Global Channel Development business,which consists of consumer packaged goods,ready-to-drink businesses and strategic partnerships,includin
88、g those with Nestl,5Table of ContentsPepsiCo,and other key business partners.Prior to this,he served as executive vice president and president,International Licensed Markets,from 2020 to 2021.He also served as executive vice president and president of Starbucks Canada from 2018 to 2020,president of
89、Starbucks Licensed Stores Operations for theUnited States and Latin America from 2016 to 2018,and president of Starbucks Global Channel Development from 2013 to 2016.He currently serves on theBoard of Directors of McCormick&Company,Incorporated,a NYSE-listed a spice and extract manufacturing company
90、.Sara Kelly joined Starbucks in 2001 and was named executive vice president and chief partner officer in 2022,where she is responsible for helping partnersrealize their career potential and building global partner capability to enable growth and deliver on the Companys strategic plan.Prior to her cu
91、rrent role,Ms.Kelly was senior vice president,Talent&Partner Experience from 2021 to 2022,where she was responsible for advancing Starbucks talent and organizationalleadership agenda and was focused on amplifying the strategic work being led by the talent acquisition,talent management,partner experi
92、ence,learning anddevelopment,and organization and leadership effectiveness teams.From 2014 to 2021,Ms.Kelly served as vice president,Partner Resources,supportingpartners in our global markets.Brad Lerman joined Starbucks in April 2023 as executive vice president and general counsel.In this role,he l
93、eads the Companys Legal and Corporate Affairsorganization.Prior to Starbucks,Mr.Lerman served as senior vice president,general counsel and corporate secretary of Medtronic plc from 2014 to 2022;andprior to that he was an executive vice president,general counsel and corporate secretary for the Federa
94、l National Mortgage Association(Fannie Mae)from2012 to 2014.Mr.Lerman has also served as chief litigation counsel for Pfizer and has worked in private practice as a partner at Winston&Strawn LLP inChicago.He also served as an Assistant United States Attorney in the Northern District of Illinois.Mr.L
95、erman currently serves on the Board of Directors ofMcKesson Corporation,a NYSE-listed health care,pharmaceutical,and medical supply company.Rachel Ruggeri joined Starbucks in 2001 as a member of the accounting team and was named executive vice president and chief financial officer in 2021.Inthis lea
96、dership role,Rachel is responsible for the global finance function for Starbucks,which includes developing and executing the financial strategies thatenable 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
97、retailportfolio across the segment,including company-operated and licensed stores from 2020 to 2021.From 2016 to 2020,she held various leadership roles infinance both internal and external to Starbucks,including Chief Financial Officer of Continental Mills from 2018 to 2020 and prior to that she was
98、 senior vicepresident of Finance at Starbucks in support of the Americas and Global Retail from 2016 to 2018.She also served as vice president of Finance from 2010 to2016 supporting Corporate Financial Planning&Analysis and the U.S.Retail business.Segment Financial InformationSegment information is
99、prepared on the same basis that our management 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
100、 and Africa,Latin America and Caribbean;and 3)Channel Development.Non-reportable operating segments andunallocated corporate expenses are reported within Corporate and Other.Revenues from our reportable operating segments as a percentage of total net revenuesfor fiscal 2023 were as follows:North Ame
101、rica(74%),International(21%)and Channel Development(5%).Our North America and International segments include both company-operated and licensed stores.Our North America segment is our most mature businessand has achieved significant scale.Certain markets within our International operations are in va
102、rious stages of development and may require more extensivesupport,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,Starbucks-and Teavana-branded single-serve products,a va
103、riety ofready-to-drink beverages,such as Frappuccino and Starbucks Doubleshot,foodservice products and other branded products sold worldwide outside of ourcompany-operated and licensed stores.A large portion of our Channel Development business operates under a licensed model of the Global Coffee All
104、iancewith Nestl,while our global ready-to-drink businesses operate under collaborative relationships with PepsiCo,Inc.,Tingyi-Ashi Beverages Holding Co.,Ltd.,Arla Foods amba,Nestl and others.6Table of ContentsRevenue ComponentsWe generate the majority of our revenues through company-operated stores
105、and licensed stores.Company-operated and Licensed Store Summary as of October 1,2023:North AmericaAs a%of TotalNorth America StoresInternationalAs a%of TotalInternational StoresTotalAs a%ofTotal StoresCompany-operated stores10,628 60%8,964 44%19,592 52%Licensed stores7,182 40%11,264 56%18,446 48%Tot
106、al17,810 100%20,228 100%38,038 100%The mix of company-operated versus licensed stores in a given market generally varies based on several factors,including our ability to access desirable localretail space,the complexity,profitability and expected ultimate size of the market for Starbucks and our ab
107、ility to leverage the support infrastructure within ageographic region.Company-operated StoresRevenue from company-operated stores accounted for 82%of total net revenues during fiscal 2023.Our retail objective is to be the leading retailer and brandof coffee and tea in each of our target markets by
108、selling the finest quality coffee,tea and related products,as well as complementary food offerings,and byproviding each customer with a unique Starbucks Experience.The Starbucks Experience is built upon superior customer service,convenience and a seamlessdigital experience as well as safe,clean and
109、well-maintained stores that reflect the personalities of the communities in which they operate,thereby building ahigh 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 in
110、 newand existing markets,as well as increasing sales in existing stores,to support our long-term strategic objective to maintain Starbucks standing as one of themost recognized and respected brands in the world.Store growth in specific existing markets will vary due to many factors,including expecte
111、d financialreturns,the maturity of the market,economic conditions,consumer behavior and the local business environment.Company-operated store data for the fiscal year-ended October 1,2023:Stores Openas ofStores Openas of Oct 2,2022OpenedClosedTransfersNetOct 1,2023North America:U.S.9,265 483(103)380
112、 9,645 Canada946 43(12)31 977 Siren Retail5 1 1 6 Total North America10,216 527(115)412 10,628 International:China6,019 857(72)785 6,804 Japan1,630 110(8)1 103 1,733 U.K.318 42(5)37 355 All Other65 3(1)2 67 Siren Retail5 5 Total International8,037 1,012(86)1 927 8,964 Total company-operated18,253 1,
113、539(201)1 1,339 19,592 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 usto locate them in or near a variety of settings,including downtown and suburban retail centers,office buildings,univ
114、ersity campuses and rural and off-highwaylocations.We are continuing the expansion of our stores,particularly drive-thru formats that provide a higher degree of access and convenience,and alternativestore formats,which are designed to provide a more streamlined customer experience in dense metropoli
115、tan 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 company-operated market investments in partner wages and trainings have7Table of Contentsincreased retention and productiv
116、ity while the acceleration of purpose-built store concepts and innovations in technologies have provided additionalconvenience and connection with our customers.In our major international markets,we also continue to invest in technology and establish partnerships withthird parties with relevant expe
117、rtise to increase digital adoption to provide convenience and elevate the customer experience.Additionally,as our business hasevolved,we have built an omni-channel business to meet more occasions as we serve a more diverse customer base through growth in online,e-commerce,delivery,mobile ordering an
118、d the in-store experience.In China,we leverage platforms such as Starbucks Now stores to enable a seamless integration ofphysical and digital customer touchpoints.Orders may be placed in advance through the Starbucks Mobile App or Starbucks Delivers and can beconveniently picked up by customers and
119、delivery providers in these express retail format locations.These strategies align closely with rapidly evolvingcustomer preferences,including higher levels of mobile ordering,more contactless pick-up experiences and reduced in-store congestion.Our investments in adigital third place offer members a
120、ccess to new benefits,a digital community and immersive coffee experiences,giving our customers new ways to experienceand connect with Starbucks.We believe our continued efforts to transform our store portfolio and elevate technology will enhance the customer experience andposition Starbucks for lon
121、g-term growth.Retail sales mix by product type for company-operated stores:Fiscal Year EndedOct 1,2023Oct 2,2022Oct 3,2021Beverages74%74%74%Food22%22%21%Other4%4%5%Total100%100%100%“Other”primarily consists of sales of serveware,packaged and single-serve coffees and teas and ready-to-drink beverages
122、,among other items.Stored Value Cards and Loyalty ProgramThe Starbucks Card,our branded stored value card program,is designed to provide customers with a convenient payment method,support gifting and increasethe frequency of store visits by cardholders,in part through the related Starbucks Rewards l
123、oyalty program where available,as discussed below.Stored valuecards are issued to customers when they initially load them with an account balance.They can be obtained in our company-operated and most licensed stores inNorth America,China,Japan and many of our other markets in our International segme
124、nt.Stored value cards can also be obtained online,via the StarbucksMobile App and through other U.S.and international retailers.Customers may access their card balances by utilizing their stored value card or the StarbucksMobile App in participating stores.In nearly all markets,including the U.S.and
125、 Canada,customers who register their Starbucks Cards are automaticallyenrolled in the Starbucks Rewards program.Registered 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
126、 can earn Stars by paying with cash,credit or debit cards,or selectedmobile wallets at all company-operated stores and a majority of licensed stores in North America.Using the Mobile Order and Pay functionality of theStarbucks Mobile App,customers can also place orders in advance for pick-up at cert
127、ain participating locations in several markets.Refer to Note 1,Summaryof Significant Accounting Policies and Estimates,included in Item 8 of Part II of this 10-K,for further discussion of our stored value cards and loyaltyprogram.Licensed StoresRevenues from our licensed stores accounted for 13%of t
128、otal net revenues in fiscal 2023.Licensed stores generally have a lower gross margin and a higheroperating margin than company-operated stores.Under the licensed model,Starbucks receives a margin on branded products and supplies sold to the licensedstore operator along with a royalty on retail sales
129、.Licensees are responsible for operating costs and capital investments,which more than offset the lowerrevenues we 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.
130、Licenseesprovide improved,and at times the only,access to desirable retail space.Most licensees are prominent retailers with in-depth market knowledge and access.Aspart of these arrangements,we sell coffee,tea,food and related products to licensees for resale to customers and receive royalties and l
131、icense fees from thelicensees.We also sell certain equipment,such as coffee brewers and espresso machines,to our licensees for use in their operations.Licensee employeesworking in licensed retail locations are required to follow our detailed store operating procedures and attend training classes sim
132、ilar to those given toemployees in company-operated stores.In a limited number of international markets,we also use traditional franchising and include these stores in the resultsof operations from our other licensed stores.TMTM(1)(1)8Table of ContentsLicensed store data for the fiscal year-ended Oc
133、tober 1,2023:Stores Openas ofStores Openas of Oct 2,2022OpenedClosedTransfersNetOct 1,2023North America:U.S.6,608 206(113)93 6,701 Canada471 17(7)10 481 Total North America7,079 223(120)103 7,182 International:Korea1,750 153(33)120 1,870 Latin America1,549 108(8)100 1,649 U.K.838 77(4)73 911 Turkey6
134、04 81(9)72 676 Taiwan544 30(11)19 563 Indonesia523 58 58 581 Thailand446 29(1)28 474 Philippines418 29 29 447 All Other3,707 469(82)(1)386 4,093 Total International10,379 1,034(148)(1)885 11,264 Total licensed17,458 1,257(268)(1)988 18,446 Other RevenuesOther revenues primarily are recorded in our C
135、hannel Development segment and include sales of packaged coffee,tea and ready-to-drink beverages tocustomers outside of our company-operated and licensed stores,as well as royalties received from Nestl under the Global Coffee Alliance and othercollaborative partnerships.Product SupplyStarbucks is co
136、mmitted to selling the finest whole bean coffees and coffee beverages.To help ensure compliance with our rigorous coffee standards,wegenerally control substantially all coffee purchasing,roasting and packaging and the global distribution of coffee used in our operations.Nestl controlsdistribution of
137、 Starbucks packaged coffee products outside of Starbucks stores through the Global Coffee Alliance,and in some cases,also roasts and packagesthese products.We purchase green coffee beans from multiple coffee-producing regions around the world and custom roast them to our exacting standards forour ma
138、ny 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 soughtby Starbucks tends to trade on a negotiated basis at a premium above the“C”coffee commodity price.Both th
139、e premium and the commodity price dependupon the supply and demand at the time of purchase.Supply and price can be affected by multiple factors in the producing countries,including weather,watersupply quality and availability throughout the coffee production chain,natural disasters,crop disease and
140、pests,general increase in farm inputs and costs ofproduction,inventory levels and political and economic conditions.Climate change may further exacerbate many of these factors.Price is also impacted bytrading activities in the arabica coffee futures market,including hedge funds and commodity index f
141、unds.In addition,green coffee prices have been affected inthe past,and may be affected in the future,by the actions of certain organizations and associations that have historically attempted to influence prices of greencoffee through agreements establishing export quotas or by restricting coffee sup
142、plies.We buy coffee using fixed-price and price-to-be-fixed purchase commitments,depending on market conditions,to secure an adequate supply of quality greencoffee.We also utilize forward contracts,futures contracts and collars to hedge“C”price exposure under our price-to-be-fixed green coffee contr
143、acts and ourlong-term forecasted coffee demand where underlying fixed-price and price-to-be-fixed contracts are not yet available.Total purchase commitments,togetherwith existing inventory,are expected to provide an adequate supply of green coffee through fiscal 2024.We depend upon our relationships
144、 with coffee producers,outside trading companies and exporters for our supply of green coffee.We believe,based onrelationships established with our suppliers,the risk of non-delivery on such purchase commitments is remote.9Table of ContentsTo help ensure the future supply of high-quality green coffe
145、e and to reinforce our leadership role in the coffee industry,Starbucks operates ten farmer supportcenters,including our China Farmer Support Center located in the Yunnan Province of this high-growth market.Farmer support centers are staffed withagronomists and sustainability experts who work with c
146、offee farming communities to promote best practices in coffee production designed to improve bothcoffee quality and yields and agronomy support to address climate change and other impacts.In addition to coffee,we also purchase significant amounts of dairy,particularly fluid milk,and to a lesser degr
147、ee,plant-based dairy-free alternative products,such as oat milk and almond milk,to support the needs of our company-operated stores.We believe,based on relationships established with our dairy andplant-based dairy-free suppliers,that the risk of non-delivery of sufficient fluid milk and plant-based
148、dairy-free alternatives to support our stores generally isremote.Products other than whole bean coffees and coffee beverages sold in Starbucks stores include tea and a number of ready-to-drink beverages that are purchasedfrom several specialty suppliers,usually under long-term supply contracts.Food
149、products,such as pastries,breakfast sandwiches and lunch items,arepurchased from national,regional and local sources.We also purchase a broad range of paper and plastic products,such as cups and cutlery,from severalcompanies to support the needs of our retail stores as well as our manufacturing and
150、distribution operations.We are also expanding our use of reusablepackaging to reduce landfill waste.We believe,based on relationships established with these suppliers and manufacturers,that the risk of non-delivery ofsufficient amounts of these items generally is remote.CompetitionOur primary compet
151、itors for coffee beverage sales are specialty coffee retailers and shops.We believe that our customers choose among specialty coffeeretailers and shops primarily on the basis of product quality,brand reputation,service and convenience,as well as price.We continue to experience directcompetition from
152、 large competitors in the quick-service restaurant sector and the ready-to-drink coffee beverage market,in addition to both well-establishedand start-up companies in many international markets.We also compete with restaurants and other specialty retailers for prime retail locations and qualifiedpers
153、onnel to operate both new and existing stores.Our 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 indirectl
154、y against all other coffees and teas on the market.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 ourtrademarks,including Starbucks,the Starbucks logo,Starbu
155、cks Reserve and Frappuccino are of material importance.The duration of trademark registrationsvaries from country to country.However,trademarks are generally valid and may be renewed indefinitely as long as they are in use and/or their registrationsare properly maintained.We own numerous copyrights
156、for items such as product packaging,promotional materials,in-store graphics and training materials.We also hold patents oncertain products,systems and designs which have an average remaining useful life of approximately five years.In addition,Starbucks has registered andmaintains numerous Internet d
157、omain names,including“S,”“S”and“S.”Seasonality and Quarterly ResultsOur business is subject to moderate seasonal fluctuations,of which our second fiscal quarter typically experiences lower revenues and operating income.Additionally,as Starbucks Cards are issued to and loaded by customers during the
158、holiday season,we tend to have higher cash flows from operations duringthe first quarter of the fiscal year.However,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 earni
159、ngs is much less pronounced.As a result of moderate seasonal fluctuations,resultsfor any quarter are not necessarily indicative of the results that may be achieved for the full fiscal year.Government RegulationAs a company with global operations,we are subject to the laws and regulations of the Unit
160、ed States and the multiple foreign jurisdictions in which we operateas well as the rules,reporting obligations and interpretations of all such requirements and obligations by various governing bodies,which may differ amongjurisdictions.In addition,changes to such laws,regulations,rules,reporting obl
161、igations and related compliance obligations could result in significant costs butare not expected to have a material effect on our capital expenditures,results of operations and competitive position as compared to prior periods.10Table of ContentsAvailable InformationStarbucks Annual Report on Form
162、10-K reports,along with all other reports and amendments filed with or furnished to the Securities and ExchangeCommission(the“SEC”),are publicly available free of charge on the Investor Relations section of our website at as soon as reasonablypracticable after these materials are filed with or furni
163、shed to the SEC.In addition,the SEC maintains an internet site that contains reports,proxy andinformation statements and other information regarding issuers that file electronically with the SEC at www.sec.gov.We also use our website as a tool todisclose important information about the company and c
164、omply with our disclosure obligations under Regulation Fair Disclosure.Our corporate governancepolicies,code of ethics and Board committee charters and policies are also posted on the Investor Relations section of Starbucks website.The information onour website(or any webpages referenced in this Ann
165、ual Report on Form 10-K)is not part of this or any other report Starbucks files with,or furnishes to,theSEC.Item 1A.Risk FactorsYou should carefully consider the risks described below in addition to the other information set forth in this Annual Report on Form 10-K,including theManagements Discussio
166、n and Analysis of Financial Conditions and Results of Operations section,the Quantitative and Qualitative Disclosures About MarketRisk section and the consolidated financial statements and related notes.If any of the risks and uncertainties described in the cautionary factors describedbelow actually
167、 occur or continue to occur,our business,financial condition and results of operations and the trading price of our common stock could bematerially and adversely affected.The considerations and risks that follow are organized within relevant headings but may be relevant to other headings aswell.More
168、over,the risks below are not the only risks we face and additional risks not currently known to us or that we presently deem immaterial may emergeor become material at any time and may negatively impact our business,reputation,financial condition,results of operations or the trading price of ourcomm
169、on stock.It is not possible for management to predict all such risks,nor can it assess the impact of all such risks on Starbucks business or the extent towhich any risk,or combination of risks,may cause actual results to differ materially from those contained in any forward-looking statements.Given
170、these risksand uncertainties,investors should not place undue reliance on forward-looking statements as a prediction of actual results.Risks Related to Brand Relevance and Brand Execution Our success depends substantially on the value of our brands and failure to preserve their value could have a ne
171、gative impact on our financial results.We believe we have built an excellent reputation globally for the quality of our products,for delivery of a consistently positive consumer experience and forour global social and environmental impact programs.The Starbucks brand is recognized throughout most of
172、 the world,and we have received high ratings inglobal brand value studies.To be successful 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.
173、Brand value is based in part on consumer perceptions on avariety of subjective qualities.Erosion of trust in our brand value can be caused by isolated or recurring incidents originating both from us or our business partners,or from external events.Such incidents can potentially trigger boycotts of o
174、ur stores or result in civil or criminal liability and can have a negative impact on our financial results.Incidents that can erode trust in our brand value include actual or perceived breaches of privacy or violations of domestic or international privacy laws,contaminated food,product recalls,store
175、 employees or other food handlers infected with communicable diseases,safety-related incidents or other potentialincidents discussed in this risk factors section.The impact of such incidents may be exacerbated if they receive considerable publicity,including rapidlythrough social or digital media(in
176、cluding for malicious reasons)or result in litigation.Consumer demand for our products and our brand value could diminishsignificantly 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-bi
177、ased,unequal,inequitable or socially irresponsible manner,including with respect to the sourcing,content or sale of our products,service andtreatment of customers at Starbucks stores,treatment of employees,including our responses to unionization efforts,or the use of customer data for general ordire
178、ct marketing or other purposes.Furthermore,if we are not effective in making sufficient progress toward our social and environmental program goals or inexecuting on our Reinvention Plan,consumer trust in our brand may suffer,and this perception could result in negative publicity or litigation.Additi
179、onally,ifwe fail to comply with laws and regulations,take controversial positions or actions or fail to deliver a consistently positive consumer experience in each of ourmarkets,including by failing to invest in the right balance of wages and benefits to attract and retain employees that represent t
180、he brand well or to foster aninclusive and diverse environment,our brand value may be diminished.The ongoing relevance of our brand may depend on making sufficient progress toward our social and environmental program goals as well as the successfulexecution of the Reinvention Plan,each of which requ
181、ires company-wide coordination and alignment.We are working to manage risks and costs to us,ourlicensees and our supply chain of any effects of climate change as well as diminishing energy and water resources.These risks include any increased publicfocus,including by governmental11Table of Contentsa
182、nd 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 increased pressure to make commitments or set goals and take actions to meet them,which couldex
183、pose us to market,operational and execution costs or risks.Some third parties may object to the scope or nature of our social and environmental programinitiatives or goals,or any revisions to these initiatives or goals,which could give rise to negative responses by governmental actors(such as retali
184、atorylegislative treatment)or consumers(such as boycotts or negative publicity campaigns)that could adversely affect our brand value.We may not be successful in our marketing,promotional and advertising plans and pricing strategies.Our continued success depends in part on our ability to adjust our m
185、arketing,promotional and advertising plans and pricing strategy to respond quickly andeffectively to shifting economic and competitive conditions as well as evolving customer preferences.We operate in a complex and costly marketing,promotional and advertising environment.Competition to attract and r
186、etain high-quality marketing partners and endorsers has increased.Our decisions tocollaborate or to cease collaborating with certain endorsers or marketing partners in light of actions taken or statements made by them could seriously harm ourbrand image with consumers and,as a result,could have an a
187、dverse effect on our sales and financial condition.Our marketing,promotional and advertisingprograms may not be successful in reaching consumers in the way we intend.Our success depends in part on whether the allocation of our advertising,promotional and marketing resources across different channels
188、,including digital,allows us to reach consumers effectively and efficiently,and in ways that aremeaningful to them.If the advertising,promotional and marketing programs or our pricing strategies are not successful,or are not as successful as those of ourcompetitors,our sales and market share could d
189、ecrease.Finally,consumers are focusing more on sustainability and the environmental impacts of operations,as well as the alignment of Starbucks actions with itsstated mission,values and promises.An inability to meet consumer expectations with respect to these issues could adversely affect our financ
190、ial results.Risks Related to Our Business If our business partners and third-party providers do not satisfactorily fulfill their responsibilities and commitments,it could damage our brand and ourfinancial results could suffer.Our global business strategy,including our plans for new stores,branded pr
191、oducts 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 Developmentbusiness.Licensees,retailers and foodservice operators are
192、 often authorized to use our logos and provide branded food,beverage and other products directly tocustomers.We believe our customers expect the same quality of service regardless of whether they visit a licensed or company-operated store,so we providetraining and support to,and monitor the operatio
193、ns of,certain of these licensees and other business partners.However,the product quality and service theydeliver may still be diminished by any number of factors beyond our control,including financial constraints or solvency,adherence to sanitation protocols andguidance,labor shortages and other fac
194、tors.We do not have direct control over our business partners and may not have visibility into their practices.We also source our food,beverage and other products from a wide variety of domestic and international business partners,and in certain cases such productsare produced or sourced by our lice
195、nsees directly.We do not monitor the quality of non-Starbucks products served by foodservice operators we have authorizedto use our logos and provide branded products as part of their foodservice business.Additionally,inconsistent uses of our brand and other of our intellectualproperty assets,as wel
196、l as failure to protect our intellectual property,can erode consumer trust and our brand value and have a material negative impact on ourfinancial results.Incidents involving food or beverage-borne illnesses,tampering,adulteration,contamination or mislabeling,whether or not accurate,as well as adver
197、sepublic or medical opinions about the health effects of consuming our products,could harm our business.Instances or reports,whether true or not,of unclean water supply or food-safety issues,such as food or beverage-borne illnesses,tampering,adulteration,contamination or mislabeling,either during gr
198、owing,manufacturing,packaging,storing or preparation,have in the past severely injured the reputations ofcompanies in the food and beverage processing,grocery and quick-service restaurant sectors.Any report linking us to such instances could severely hurt oursales and could possibly lead to product
199、liability claims,litigation(including class actions),temporary store closures,or other adverse consequences.Cleanwater is critical to the preparation of coffee,tea and other beverages,as well as ice for our cold beverages,and our ability to ensure adequate supplies of cleanwater and ice to our store
200、s can be limited,particularly in some international locations.We are also continuing to incorporate more products in our food andbeverage lineup that require freezing or refrigeration,which increases the risk of food safety related incidents if correct temperatures are not maintained due tomechanica
201、l malfunction or human error.12Table of ContentsWe also face risk by relying on third-party food suppliers to provide and transport ingredients and finished products to our stores.The product quality andservice they deliver may be diminished by any number of factors beyond our control and it may be
202、difficult to detect contamination or other defects in theseproducts.There is greater risk from those we do not monitor,or do not monitor as closely.Furthermore,stemming from the COVID-19 pandemic,there arestricter health regulations and guidelines and increased public concern over food safety standa
203、rds and controls.Potential food safety incidents,whether at ourstores or involving our business partners,could lead to wide public exposure,which could materially harm our business.In addition,instances of food or beverage-safety issues,even those involving solely the restaurants or stores of compet
204、itors or of suppliers or distributors(regardless of whether we use or have used those suppliers or distributors),could adversely affect our sales on a regional or global basis by resulting in negativepublicity about us or the foodservice industry in general.A decrease in customer traffic as a result
205、 of food-safety concerns or negative publicity,or as a result ofa temporary closure of any of our stores,product recalls,viral-contaminated food or beverage claims or other food or beverage-safety claims or litigation,couldmaterially harm our business and results of operations.We may not be successf
206、ul in implementing important strategic initiatives or effectively managing growth,which may have an adverse impact on ourbusiness 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 genera
207、te expectedreturns,which may result in an adverse impact on our business and financial results.These strategic initiatives,which include our Reinvention Plan,aredesigned to create growth,improve our results of operations and drive long-term shareholder value,and include:being an employer of choice a
208、nd investing in employees to deliver a superior customer experience;building our leadership position around coffee;driving convenience,brand engagement and digital relationships through our mobile,loyalty,delivery and digital capabilities both domestically andinternationally;simplifying store admini
209、strative tasks to allow store partners to better engage with customers;increasing the scale of the Starbucks store footprint with disciplined global expansion and introducing flexible and unique store formats,including theaccelerated development of alternative store formats(such as Starbucks Pickup
210、stores,Starbucks Now stores and curbside pickup);adjusting rapidly to changing customer preferences and behaviors as a result of the COVID-19 pandemic,changing economic conditions,increasedglobal interest rates and inflation;moving to a more licensed store model in certain markets and a more company
211、-operated model in other markets;creating new occasions in stores across all dayparts with new product offerings,including our growing lunch food and beverage product lineup;continuing the global growth of our Channel Development business through our supply,distribution and licensing agreements with
212、 Nestl and otherChannel Development business partners;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 addit
213、ion to other factors listed in this risk factors section,factors that may adversely affect the successful implementation of these initiatives,which couldhave a material adverse impact on our business and financial results,include the following:imposition of additional taxes by jurisdictions,such as
214、on certain types of beverages or based on number of employees;construction cost increases associated with new store openings and remodeling of existing stores;delays in store openings for reasons beyond ourcontrol,such as potential shortages of materials and labor and delays in permits,or a lack of
215、desirable real estate locations available for lease atreasonable rates,either of which could keep us from meeting annual store opening targets in the U.S.and internationally;governmental regulations or other health guidelines concerning operations of stores,including due to public health emergencies
216、;not successfully scaling our supply chain infrastructure as our product offerings increase and as we continue to expand,including our emphasis on abroad range of high-quality food offerings;13Table of Contents not successfully adapting to customer or market factors affecting our supply chain as we
217、work to address sustainability and climate change;the deterioration in our credit ratings,which could limit the availability of additional financing and increase the cost of obtaining financing to fund ourinitiatives;and geopolitical instability and international conflicts.Effectively managing growt
218、h can be challenging,particularly as we continue to expand in international markets where we must balance the need for flexibilityand a degree of autonomy for local management against the need for consistency with our goals,policies and standards.If we are not successful inimplementing our strategic
219、 initiatives,or,in the event we undertake large acquisitions,integrations and divestitures,we may be required to evaluate whethercertain assets,including goodwill and other intangibles,have become impaired.In the event we record an impairment charge,it could have a material impacton our financial re
220、sults.Evolving consumer preferences and tastes may adversely affect our business.Our continued success depends on our ability to attract and retain customers.Our financial results could be adversely affected by a shift in consumer spendingaway from outside-the-home food and beverages(such as a reduc
221、tion in discretionary spending as a result of the resumption of student loan payments);lack ofcustomer acceptance of new products(including due to price increases necessary to cover the costs of new products or higher input costs),brands(such as theglobal expansion of the Starbucks brand)and platfor
222、ms(such as features of our mobile technology,changes in our loyalty rewards programs and our deliveryservices initiatives);or customers reducing their demand for our current offerings as new products are introduced.In addition,some of our products containcaffeine,dairy products,sugar and other compo
223、unds and allergens,the health effects of which are the subject of public and regulatory scrutiny,including thesuggestion 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
224、litigation based on alleged adverse health impacts of consumption of various food and beverage products.An unfavorable reporton the health effects of caffeine or other compounds present in our products,whether accurate or not,imposition of additional taxes on certain types of foodand beverage compon
225、ents,or negative publicity or litigation arising from certain health risks could significantly reduce the demand for our beverages and foodproducts and could materially harm our business and results of operations.Our financial results have been,and could continue to be,adversely affected bychanges i
226、n macroeconomic conditions,including increases in real estate costs in certain domestic and international markets,inflationary pressures and changesin prevailing interest rates,disruptions to our supply chain,changes in governmental rules and approaches to taxation,and fluctuations in foreign curren
227、cyexchange rates.Such changes could affect consumer behavior and their ability or willingness to spend discretionary income on our products.Furthermore,ourfinancial results have been and could continue to be adversely affected by the persisting impacts of the COVID-19 pandemic,including the disrupti
228、on ofcustomer routines,changes to employer“work-from-home”policies and changes in consumer behavior and the ability or willingness to spend discretionaryincome on our products.Risks Related to Operating a Global Business We are highly dependent on the financial performance of our North America opera
229、ting segment.Our financial performance is highly dependent on our North America operating segment,which comprised approximately 74%of consolidated total netrevenues in fiscal year 2023.If the North America operating segment revenue trends slow or decline,especially in our U.S.market,our other segmen
230、ts may beunable to make up any significant shortfall and our business and financial results could be adversely affected.And because the North America segment isrelatively mature and produces the large majority of our operating cash flows,such a slowdown or decline could result in reduced cash flows
231、for funding theexpansion of our international businesses and other initiatives and for returning cash to shareholders.We are increasingly dependent on the success of certain international markets in order to achieve our growth targets.Our future growth increasingly depends on the growth and sustaine
232、d profitability of certain international markets.Some or all of our international marketbusiness units(“MBUs”),which we generally define by the countries in which they operate,may not be successful in their operations or in achieving expectedgrowth,which ultimately requires achieving consistent,stab
233、le net revenues and earnings.The performance of these international operations may be adverselyaffected by economic downturns in one or more of the countries in which our large MBUs operate.A decline in performance of one or more of our significantinternational MBUs could have a material adverse imp
234、act on our consolidated results.The International segment is a significant profit center driving our global returns,along with our North America segment.In particular,our China MBUcontributes meaningfully to both consolidated and International net revenues and operating income.China is expected to b
235、e our fastest growing market in termsof percentage growth,our second largest market overall and 100%company-owned.Due to the significance of our China market for our profit and growth,weare exposed to risks in China,including the risks mentioned elsewhere and the following:14Table of Contents the ef
236、fects of current U.S.-China relations,including rounds of tariff increases and retaliations and increasing restrictive regulations,potential boycottsand increasing anti-Americanism;escalating U.S.-China tension and increasing political sensitivities in China;the lingering effects of the COVID-19 pan
237、demic and related governmental regulations and restrictions on our operations in China;entry of new competitors to the specialty coffee market in China;changes in economic conditions in China and potential negative effects to the growth of its middle class,wages,labor,inflation,discretionaryspending
238、 and real estate and supply chain costs;ongoing government regulatory reform,including relating to public health,food safety,tariffs and tax,sustainability and responses to climate change,which result in regulatory uncertainty as well as potential significant increases in compliance costs;data-priva
239、cy and cybersecurity risks unique to the conduct of business in China;and food-safety related matters,including compliance with food-safety regulations and ability to ensure product quality and safety.Additionally,some factors that will be critical to the success of our international operations over
240、all are different than those affecting our U.S.stores andlicensees.Tastes naturally vary by region,and consumers in some MBUs may not embrace our products to the same extent as consumers in the U.S.or otherinternational markets.Occupancy costs and store operating expenses can be higher international
241、ly than in the U.S.due to higher rents for prime store locationsor costs of compliance with country-specific regulatory requirements.Because many of our international operations are in an early phase of development,operating expenses as a percentage of related revenues are often higher compared to m
242、ore developed operations.We face risks as a global business that could adversely affect our financial performance.We operate in 86 markets globally.Our international operations are also subject to additional inherent risks of conducting business abroad,such as:foreign currency exchange rate fluctuat
243、ions,or requirements to transact in specific currencies;changes or uncertainties in economic,legal,regulatory,social and political conditions in our markets,as well as negative effects on U.S.businessesdue to increasing anti-American sentiment in certain markets;interpretation and application of law
244、s and regulations,including tax,tariffs,labor,merchandise,anti-bribery and privacy laws and regulations;restrictive actions of foreign or U.S.governmental authorities affecting trade and foreign investment,especially during periods of heightened tensionbetween the U.S.and such foreign governmental a
245、uthorities,including protective measures such as export and customs duties and tariffs,governmentintervention favoring local competitors and restrictions on the level of foreign ownership;import or other business licensing requirements;the enforceability of intellectual property and contract rights;
246、limitations on the repatriation of funds and foreign currency exchange restrictions due to current or new U.S.and international regulations;in developing economies,the growth rate in the portion of the population achieving sufficient levels of disposable income may not be as fast as weforecast;diffi
247、culty in staffing,developing and managing foreign operations and supply chain logistics,including ensuring the consistency of product qualityand service,due to governmental actions affecting supply chain logistics,distance,language and cultural differences,as well as challenges inrecruiting and reta
248、ining high-quality employees in local markets;local laws that make it more expensive and complex to negotiate with,retain or terminate employees;local regulations,health guidelines and safety protocols affecting our operations;and delays in store openings for reasons beyond our control,competition w
249、ith locally relevant competitors or a lack of desirable real estate locationsavailable for lease at reasonable rates,any of which could keep us from meeting annual store opening targets and,in turn,negatively impact netrevenues,operating income and earnings per share.15Table of ContentsMoreover,many
250、 of the foregoing risks are particularly acute in developing countries,which are important to our long-term growth prospects.An inability tomanage effectively the risks associated with our international operations could adversely affect our business and financial results.Our reliance on key business
251、 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 degree towhich we are able to enter into,maintain,develop and negotiate appropriate terms a
252、nd conditions of,and enforce,commercial and other agreements and theperformance of our business partners under such agreements.Our international licensees may face capital constraints or other factors that may limit the speedat which they are able to expand and develop in a certain market.Our Channe
253、l Development business is heavily reliant on Nestl,which has the right to selland distribute our packaged goods and foodservice products to retailers and operators,with few exceptions.If Nestl fails to perform its distribution andmarketing commitments under our agreements and/or fails to support,pro
254、tect and grow our brand in Channel Development,our Channel Developmentbusiness could be adversely impacted for a period of time,present long-term challenges to our brand,limit our ability to grow our Channel Developmentbusiness and have a material adverse impact on our business and financial results
255、.Additionally,the growth of our Channel Development business is in partdependent on the level of discretionary support provided by our retail and licensed store businesses.There are generally a relatively small number of licensee partners operating in specific markets.If they are not able to access
256、sufficient funds or financing,orare otherwise unable or unwilling to successfully operate and grow their businesses,it could have a material adverse effect on our results in the applicablemarkets.Risks Related to Supply Chain Increases in the cost of high-quality arabica coffee beans or other commod
257、ities or decreases in the availability of high-quality arabica coffee beans orother 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 significant volatility.We purchase,roast and sell high-q
258、uality whole beanarabica 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 abovethe“C”price.This premium depends upon the supply and demand at the time of purchase and the amount of the premium can vary s
259、ignificantly.Increases inthe“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,quantity,delivery period and other negotiated terms are agr
260、eed upon,but the date,and thereforeprice,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 countries,such as weather,water supply quality andavailability
261、 throughout the coffee production chain,natural disasters,crop disease and pests,general increase in farm inputs and costs of production,inventorylevels,political and economic conditions and the actions of certain organizations and associations that have historically attempted to influence prices of
262、 greencoffee 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,extreme weather conditions such as drought or frost in Brazi
263、l haveimpacted coffee prices in the past,and in the likely event that such weather conditions were to reoccur in the future,they would have similar consequences oncoffee price volatility.Because of the significance of coffee beans to our operations,combined with our ability to only partially mitigat
264、e future price riskthrough purchasing practices and hedging activities,increases in the cost of high-quality arabica coffee beans could have a material adverse impact on ourprofitability.In addition,if we are not able to purchase sufficient quantities of green coffee due to any of the above factors
265、or due to a worldwide or regionalshortage,we may not be able to fulfill the demand for our coffee,which could have a material adverse impact on our business operations and financialperformance.We also purchase significant amounts of dairy products,particularly fluid milk,and to a lesser degree,plant
266、-based dairy-free alternative products,such as oatmilk and almond milk,to support the needs of our company-operated retail stores.Additionally,other commodities,including tea and those related to food andbeverage inputs,such as cocoa,produce,baking ingredients,meats,eggs and energy,as well as the pr
267、ocessing of these inputs,are important to our operations.Increases in the cost of dairy products and other commodities,or lack of availability,whether due to supply shortages,delays or interruptions in processing,orotherwise,especially in international markets,could have a material adverse impact on
268、 our profitability.Similarly,increases in the cost of,or lack ofavailability,whether due to supply shortages,delays or interruptions in the processing of plant-based alternatives could have a material adverse impact on ourprofitability.Interruption of our supply chain could affect our ability to pro
269、duce or deliver our products and could negatively impact our business and profitability.16Table of ContentsAny 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
270、-party logistic service providers or common carriers that ship goods within our distribution channels,trade restrictions,suchas increased tariffs or quotas,embargoes or customs restrictions,pandemics,social or labor unrest,labor shortages,natural disasters or political disputes andmilitary conflicts
271、 that cause a material disruption in our supply chain could have a negative material impact on our business 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 incer
272、tain cases are produced or sourced by our licensees directly.We rely on these suppliers 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 a
273、s we increase ourfresh and prepared food offerings,especially with 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 r
274、ely on one or very few suppliers.A suppliers failure to meet our standards,provide products in a timely and efficient manner or comply with applicable laws is beyond our control.These issuescould have a material negative impact on our business and profitability.Risks Related to Macroeconomic Conditi
275、ons Our financial condition and results of operations are subject to,and may be adversely affected by,a number of macroeconomic and other factors,manyof 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
276、 and other factors,many of which are largely outsideour 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 ourbusiness,financial condition and/or results of operations:increases in real estate costs in certa
277、in domestic and international markets;inflationary pressures and changes in prevailing interest rates;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 natura
278、l or man-made disasters affecting a large market or several closely located markets that may temporarily butsignificantly affect our retail business in such markets;changes in climate,including changes to the frequency or severity of extreme weather events,that impact the price and availability or c
279、ost of goodsand services,energy and other materials throughout our supply chain;and especially in our largest markets,including the U.S.and China,labor discord or disruption,geopolitical events,war,terrorism(including incidentstargeting us),political instability,acts of public violence,boycotts,incr
280、easing anti-American sentiment in certain markets,hostilities and social unrestand health pandemics that lead to avoidance of public places or restrictions on public gatherings such as in our stores.Unfavorable economic conditions could also adversely affect our suppliers and licensees,who in turn c
281、ould experience cash flow problems,more costly orunavailable financing,credit defaults and other financial hardships.This couldlead to supplier or licensee insolvency,increase our bad debt expense,or causeus to increase the levels of unsecured credit that we provide to suppliers and licensees.Furthe
282、r,if any of our licensees becomes insolvent this could result in ourexit from a particular market,and negatively impact our reputation.For example,one of our licensees is experiencing financial solvency issues,whichmayrequire the Company to expend capital resources to help fundtheiroperating expense
283、s in the short term.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 discretionary spending,our results of operations are sensitive to changes in or uncertainty about macroeconomicconditio
284、ns.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 customers may have or in the future have less money for discretionary purchases and may stop or reduce theirpurch
285、ases of our products or switch to Starbucks or competitors lower-priced products as a result of various factors,including job losses,inflation,changes inprevailing interest rates,higher taxes,reduced access to credit,changes in federal economic policy,a global health pandemic,international trade dis
286、putes orgeopolitical instability.We may also experience a reduction and increased volatility in demand for our products in connection with a global health pandemic.For example,in China,reductions and continuing volatility in that market may be caused by,among other things:store closures or modified
287、operating hoursand business model,reduced customer traffic due to illness,quarantine or government or self-imposed restrictions placed on our stores operations,impacts17Table of Contentscaused by precautionary measures such as those related to face coverings and vaccinations and changes in consumer
288、spending behaviors,including thosecaused 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 without a corresponding decrease in costs would put
289、 downward pressure on margins andwould negatively impact our financial results.There is also a risk that if negative economic conditions or uncertainty persist for a long period of time orworsen,consumers may make long-lasting changes to their discretionary purchasing behavior,including less frequen
290、t discretionary purchases on a morepermanent basis or enduring changes in behavior that precipitate a more general downturn in the restaurant industry.These and other macroeconomic factorscould have an adverse effect on our sales,profitability or development plans,which could harm our results of ope
291、rations and financial condition.Failure to meet market expectations for our financial performance and fluctuations in the stock market as a whole will likely adversely affect the marketprice and volatility of our stock.Failure to meet market expectations going forward,particularly with respect to ou
292、r operational and financial results,and expectations regarding the success ofour Reinvention Plan and related guidance,environmental performance and shareholder returns,will likely result in a decline and/or increased volatility in themarket price of our stock.In addition,price and volume fluctuatio
293、ns in the stock market as a whole may affect the market price of our stock in ways that maybe unrelated to our financial performance.Risks Related to Human Capital Changes in the availability of and the cost of labor could adversely affect our business.Our business could be adversely impacted by inc
294、reases in labor costs,including wages and benefits,which,in a retail business such as ours,are two of ourmost significant costs,both domestically and internationally,including those increases triggered by state and federal legislation and regulatory actionsregarding wages,scheduling and benefits;inc
295、reased healthcare and workers compensation insurance costs;and increased wages and costs of other benefitsnecessary to attract and retain high-quality employees with the right skill sets.The growth of our business can make it increasingly difficult to locate and hiresufficient numbers of employees,t
296、o maintain an effective system of internal controls for a globally dispersed enterprise and to train employees worldwide todeliver a consistently high-quality product and customer experience,which could materially harm our business and results of operations.Furthermore,we haveexperienced,and could c
297、ontinue to experience,a shortage of labor for store positions,and the increased availability of alternative telecommuting employmentoptions by other employers could decrease the pool of available qualified talent for key functions.In addition,our wages and benefits programs may beinsufficient to att
298、ract and retain the best talent.Starting in September 2021,Starbucks partners at a number of company-operated stores sought union representation through elections conducted by theauthorities.Unions have secured representation rights at a number of these stores,with potentially more to follow.The law
299、 places limitations on unilateral actions taken with respect to employees who are represented by unions because in certain circumstances the lawrequires the employer to notify and to bargain with the union prior to making certain operational or other changes that may affect employee wages,hours orot
300、her terms and conditions of employment.These limitations could negatively affect our costs,change our employee culture,and decrease our flexibility.Theyalso present the potential to disrupt our current operational model by affecting our ability to fully implement operational changes to enhance our e
301、fficiency andadapt to changing business needs.Moreover,we have experienced job actions in some company-operated stores.Such job actions and work stoppages have the potential to negatively impact ouroperations,third-party providers upon whom we rely to deliver product,our sales,and our costs.Addition
302、ally,our position with respect to unions and the unionization of partners could negatively impact how our brand is perceived and have adverse effectson our business,including on our financial results.These positions could also expose us to legal risk,causing us to incur costs to defend legal and reg
303、ulatoryactions,potential penalties and restrictions,and reputational harm.The loss of key personnel or difficulties recruiting and retaining qualified personnel or effectively managing changes in our workforce could adverselyimpact our business and financial results.Much of our future success depend
304、s on the continued availability and service of key personnel and employees.The loss of any of our executive officers orother key senior management personnel could harm our business.Our success also depends substantially on the contributions and abilities of our retail storeemployees upon whom we rel
305、y to give customers a superior in-store experience and elevate our brand.Accordingly,our performance depends on our ability torecruit and retain high-quality management personnel and other employees to work in and manage our stores,both domestically and internationally.Our18Table of Contentsability
306、to do so has been and may continue to be impacted by challenges in the labor market,which has experienced and may continue to experience wageinflation,labor shortages,increased employee turnover,changes in availability of our workforce and a shift toward remote or hybrid work arrangements.Ourability
307、 to attract and retain corporate,retail and other personnel is also acutely impacted in certain international and domestic markets where the competition fora relatively small number of qualified employees is intense or in markets where large high-tech companies are able to offer more competitive sal
308、aries andbenefits.Additionally,there is intense competition for qualified technology systems developers necessary to develop and implement new technologies for ourgrowth initiatives,including increasing our digital relationships with customers.If we are unable to recruit,retain and motivate employee
309、s sufficiently tomaintain our current business and support our projected growth,our business and financial performance may be adversely affected.Risks Related to Competition We face intense competition in each of our channels and markets,which could lead to reduced profitability.The specialty coffee
310、 market is intensely competitive,including with respect to product quality,innovation,service,convenience,such as delivery service andmobile 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 nothave leade
311、rship 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 traffic to Starbucks stores and/or average value per transaction adversely affe
312、cting oursales and results of operations.Similarly,continued competition from well-established competitors,or competition from large new entrants or well-fundedsmaller companies,in our domestic and international markets could hinder growth and adversely affect our sales and results of operations in
313、those markets.Many small competitors also continue to open coffee specialty stores in many of our markets across the world,which in the aggregate may also lead tosignificant decreases of customer traffic to our stores in those markets.Increased competition globally in packaged coffee and tea and sin
314、gle-serve and ready-to-drink coffee beverage markets,including from new and large entrants to this market,could adversely affect the profitability of the Channel Developmentsegment.In addition,not all of our competitors may seek to establish environmental or sustainability goals at a comparable leve
315、l to ours,which could result inlower supply chain or operating costs for our competitors.We may incur increased costs associated with reducing carbon dioxide and other greenhouse gasemissions,reducing the use of plastic or imposing performance obligations on our suppliers that could increase financi
316、al obligations for us and our businesspartners and could affect our profitability.Additionally,if we are unable to respond to consumer demand for healthy beverages and foods,or our competitorsrespond more effectively,this could have a negative effect on our business.Furthermore,declines in general c
317、onsumer demand for specialty coffee products forany reason,including due to consumer preference for other products,flattening demand for our products,changed customer daily routines or traffic to stores,orchanged customer spending behaviors due to challenging economic conditions,could have a negativ
318、e effect on our business.Risks Related to Environmental,Social and Governance Matters Climate change may have an adverse impact on our business.We recognize that there are inherent climate-related risks wherever business is conducted.For example,as we noted above,the supply and price of coffee wepur
319、chase can also be affected by multiple factors in the producing countries,such as weather and water supply quality and availability,which factors may becaused by or exacerbated by climate change.Climate change may also result in decreased availability,less favorable pricing,or other adverse conseque
320、nces fornon-coffee inputs in our products.In particular,climate change may affect the availability of water in the markets in which we operate and expect to operateand elsewhere in our supply chain,which could have adverse impacts on our business.We operate in 86 markets globally.Our properties and
321、operations maybe vulnerable to the adverse effects of climate change,which are predicted to increase the frequency and severity of extreme weather events and other naturalcycles such as wildfires and droughts.Such events have the potential to disrupt our operations,cause store closures,disrupt the b
322、usiness of our third-partysuppliers and impact our customers,all of which may cause us to suffer losses and additional costs to maintain or resume operations.Our business is subject to evolving corporate governance and public disclosure regulations and expectations,including with respect to environm
323、ental,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 NasdaqStock Market and the Financial Accounting Standards Board.These rules and
324、regulations continue to evolve in scope and complexity and many newrequirements 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 environmen
325、tal,social and governance(“ESG”)matters and related disclosures.Thesechanging rules,regulations and stakeholder expectations have resulted in,and are likely to continue to result in,increased general and administrative expensesand increased management time and attention spent complying with or19Tabl
326、e of Contentsmeeting such regulations and expectations.For example,developing and acting on initiatives within the scope of ESG,and collecting,measuring and reportingESG-related information and metrics can be costly,difficult and time consuming and is subject to evolving reporting standards,includin
327、g the SECs proposedclimate-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 investments and other ESG-related matters,in our SE
328、C filings or in other publicdisclosures.These initiatives and goals within the scope of ESG could be difficult and expensive to implement,the technologies needed to implement themmay not be cost effective and may not advance at a sufficient pace,and we could be criticized for the accuracy,adequacy o
329、r completeness of the disclosure.Further,statements about our ESG-related initiatives and goals,and progress toward those goals,may be based on standards for measuring progress that arestill developing,internal controls and processes that continue to evolve,and assumptions that are subject to change
330、 in the future.If we are unable to meet ourESG-related goals or evolving stakeholder or industry expectations and standards,or if we are perceived to have not responded appropriately to the growingconcern for ESG issues,customers and consumers may choose to stop purchasing our products or purchase p
331、roducts from another company or a competitor,and our reputation,business or financial condition may be adversely affected.If our ESG-related data,processes and reporting are incomplete or inaccurate,orif we fail to achieve progress with respect to our goals within the scope of ESG on a timely basis,
332、or at all,our reputation,business,financial performance andgrowth could be adversely affected.In addition,we could be criticized by ESG detractors for the scope or nature of our ESG initiatives or goals or for any revisions to these goals.We could alsobe subjected to negative responses by government
333、al actors(such as anti-ESG legislation or retaliatory legislative treatment)or consumers(such as boycotts ornegative publicity campaigns)targeting Starbucks that could adversely affect our reputation,business,financial performance and growth.Risks Related to Intellectual Property We may not be able to adequately protect our intellectual property or adequately ensure that we are not infringing the