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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 September 29,2024or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE A

2、CT 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 execu

3、tive 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:No

4、neIndicate 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 regis

5、trant:(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

6、x No 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 such

7、files).Yes x No Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or anemerging growth company.See the definitions of“large accelerated filer,”“accelerated filer,”“smaller reporting company”and“emerging

8、 growth company”in Rule 12b-2 of the Exchange Act.Large accelerated filerxAccelerated filerNon-accelerated filerSmaller reporting companyEmerging growth companyIf an emerging growth company,indicate by check mark if the registrant has elected not to use the extended transition period for complying w

9、ith 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 Sect

10、ion 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 filingrefle

11、ct 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 p

12、eriod 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 common stock held by non-affiliates of the registrant as of the last business day of the registrants most recently completedsecon

13、d fiscal quarter,based upon the closing sale price of the registrants common stock on March 31,2024 as reported on the Nasdaq Global Select Marketwas$103.4 billion.As of November 13,2024,there were 1,133.8 million shares of the registrants Common Stock outstanding.Table of ContentsDOCUMENTS INCORPOR

14、ATED BY REFERENCEPortions of the registrants definitive Proxy Statement for the registrants Annual Meeting of Shareholders to be held on March 12,2025,have beenincorporated by reference into Part III of this Annual Report on Form 10-K where indicated.Except as expressly incorporated by reference,the

15、 registrantsProxy Statement shall not be deemed to be part of this report.Table of ContentsSTARBUCKS CORPORATIONForm 10-KFor the Fiscal Year Ended September 29,2024TABLE OF CONTENTSPART IItem 1Business3Item 1ARisk Factors11Item 1BUnresolved Staff Comments28Item 1CCybersecurity28Item 2Properties30Ite

16、m 3Legal Proceedings30Item 4Mine Safety Disclosures30PART IIItem 5Market for the Registrants Common Equity,Related Shareholder Matters,and Issuer Purchases of Equity Securities31Item 6Reserved33Item 7Managements Discussion and Analysis of Financial Condition and Results of Operations34Item 7AQuantit

17、ative and Qualitative Disclosures About Market Risk49Item 8Financial Statements and Supplementary Data50Index for Notes to Consolidated Financial Statements55Report of Independent Registered Public Accounting Firm89Item 9Changes in and Disagreements with Accountants on Accounting and Financial Discl

18、osure91Item 9AControls and Procedures91Item 9BOther Information93Item 9CDisclosure Regarding Foreign Jurisdictions that Prevent Inspections93PART IIIItem 10Directors,Executive Officers,and Corporate Governance94Item 11Executive Compensation94Item 12Security Ownership of Certain Beneficial Owners and

19、 Management and Related Shareholder Matters94Item 13Certain Relationships and Related Transactions and Director Independence94Item 14Principal Accountant Fees and Services94PART IVItem 15Exhibits and Financial Statement Schedules95Item 16Form 10-K Summary102SIGNATURES103 Table of ContentsCAUTIONARY

20、NOTE REGARDING FORWARD-LOOKING STATEMENTSThis Annual Report on Form 10-K includes“forward-looking”statements within the meaning of the Private Securities Litigation Reform Act of 1995 regardingfuture events and the future results of Starbucks Corporation(together with its subsidiaries)that are based

21、 on our current expectations,estimates,forecasts,and projections about our business,our results of operations,the industry in which we operate,our economic and market outlook,and the beliefs andassumptions of our management.Forward-looking statements can be identified by the fact that they do not re

22、late strictly to historical or current facts.Theyoften include words such as“believes,”“expects,”“anticipates,”“estimates,”“intends,”“plans,”“seeks,”or words of similar meaning,or future orconditional verbs,such as“will,”“should,”“could,”“may,”“aims,”“intends,”or“projects,”and similar expressions in

23、tended to identify forward-lookingstatements,although not all forward-looking statements contain these identifying words.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

24、historical 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 Opera

25、tions”sections and in otherreports we file with the U.S.Securities and Exchange Commission(“SEC”),as well as,among others:our ability to preserve,grow,and leverage our brands,including the risk of negative responses by consumers(such as boycotts or negative publicitycampaigns),governmental actors(su

26、ch as retaliatory legislative treatment),or other third parties who object to certain actions taken or not taken by theCompany,whose responses could adversely affect our brand value;the impact of our marketing strategies,promotional and advertising plans,pricing strategies,platforms,reformulations,i

27、nnovations,or customer experienceinitiatives or investments;the costs and risks associated with,and the successful execution and effects of,our existing and any future business opportunities,expansions,initiatives,strategies,investments,and plans,including our Back to Starbucks plan;changes in consu

28、mer preferences,demand,consumption,or spending behavior,including due to shifts in demographic or health and wellness trends,reduction in discretionary spending and price increases,and our ability to anticipate or react to these changes;the ability of our business partners,suppliers,and third-party

29、providers to fulfill their responsibilities and commitments;the potential negative effects of reported incidents involving food-or beverage-borne illnesses,tampering,adulteration,contamination,or mislabeling;our ability to open new stores and efficiently maintain the attractiveness of our existing s

30、tores;our dependence on the financial performance of our North America operating segment and our increasing dependence on certain international markets;our anticipated operating expenses,including our anticipated total capital expenditures;inherent risks of operating a global business,including chan

31、ging conditions in our markets,local factors affecting store openings,protectionist trade orforeign investment policies,economic or trade sanctions,compliance with local laws and other regulations,and local labor policies and conditions,includinglabor strikes and work stoppages;higher costs,lower qu

32、ality,or unavailability of coffee,dairy,cocoa,energy,water,raw materials,or product ingredients;the potential impact on our supply chain of adverse weather conditions,natural disasters,or significant increases in logistics costs;the ability of our supply chain to meet current or future business need

33、s and our ability to scale and improve our forecasting,planning,production,andlogistics management;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 relationshi

34、ps with such parties;the impact of unfavorable global or regional economic conditions and related economic slowdowns or recessions,low consumer confidence,highunemployment,weak credit or capital markets,budget deficits,burdensome government debt,austerity measures,higher interest rates,higher taxes,

35、international trade disputes,government restrictions,geopolitical instability,higher inflation,or deflation;failure to meet our announced guidance or market expectations and the impact thereof;failure to attract or retain key executive or partner talent or successfully transition executives;the impa

36、cts of partner investments and changes in the availability and cost of labor,including any union organizing efforts and our responses to such efforts;the impact of foreign currency translation,particularly a stronger U.S.dollar;the impact of,and our ability to respond to,substantial competition from

37、 new entrants,consolidations by competitors,and other competitive activities,suchas pricing actions(including price reductions,promotions,discounting,couponing,or free goods),marketing,category expansion,product introductions,orentry or expansion in our geographic markets;potential impacts of climat

38、e change;evolving corporate governance and public disclosure regulations and expectations;the potential impact of activist shareholder actions or tactics;1Table of Contents failure to comply with applicable laws and changing legal and regulatory requirements;the impact or likelihood of significant l

39、egal disputes and proceedings or government investigations;potential negative effects of,and our ability to respond to,a material failure,inadequacy,or interruption of our information technology systems or those ofour third-party business partners or service providers,or failure to comply with data

40、protection laws;and our ability to adequately protect our intellectual property or adequately ensure that we are not infringing the intellectual property of others.In addition,many of the foregoing risks and uncertainties are,or could be,exacerbated by any worsening of the global business and econom

41、ic environment.Aforward-looking statement is neither a prediction nor a guarantee of future events or circumstances,and those future events or circumstances may not occur.You should not place undue reliance on the forward-looking statements,which speak only as of the date of this report.We are under

42、 no obligation to update oralter any forward-looking statements,whether as a result of new information,future events,or otherwise.2Table of ContentsPART IItem 1.BusinessGeneralIn this Annual Report on Form 10-K(“10-K”or“Report”)for the fiscal year ended September 29,2024(“fiscal 2024”),Starbucks Cor

43、poration(together withits subsidiaries)is referred to as“Starbucks,”the“Company,”“we,”“us,”or“our.”Starbucks is the premier roaster,marketer,and retailer of specialty coffee in the world,operating in 87 markets.Formed in 1985,Starbucks Corporationscommon stock trades on the Nasdaq Global Select Mark

44、et(“Nasdaq”)under the symbol“SBUX.”We purchase and roast high-quality coffees that we sell,along with handcrafted coffee,tea,and other beverages and a variety of high-quality food items through company-operated stores.We also sell a variety ofcoffee and tea products and license our trademarks throug

45、h other channels,such as licensed stores as well as grocery and foodservice through our GlobalCoffee Alliance with Nestl S.A.(“Nestl”).In addition to our flagship Starbucks Coffee brand,we sell goods and services under the following brands:Teavana,Ethos,and Starbucks Reserve.Our primary objective is

46、 to maintain Starbucks standing as one of the most recognized and respected brands in the world.We believe the continuousinvestments 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,de

47、veloped markets such as the U.S.and in higher growth markets,as well as optimizing the mix of company-operated and licensedstores around the world.In addition,by leveraging experiences gained through our stores and elsewhere,we continue to drive beverage,equipment,process,and technology innovation,i

48、ncluding in our industry-leading digital platform.We strive to regularly offer consumers new,innovative coffee and other productsin 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,wher

49、e we work together to create a positive impact in the world.With coffeeat our core,we pursue ambitious goals for our partners(employees),our communities,and our planet,which we believe also contributes to the long-termsustainability of creating a thriving business powered by thriving people for a th

50、riving planet and communities.Our work to uplift one another extends wellbeyond our partners to the communities where we do business around the world.We are committed to responsible and ethical sourcing led by Coffee andFarmer Equity Practices(“C.A.F.E.Practices”),the Companys third-party verificati

51、on program and the cornerstone of our approach to ethical sourcing ofcoffee with over 98%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 throug

52、h our practices,policies,and benefits.This work is groundedin the belief that we are at 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

53、our stores that are welcoming and safe.We believe the strength ofour workforce is one of the significant contributors to our success as a global brand that leads with purpose.Therefore,one of our core strategies is to invest inand support our partners to differentiate our brand,products,and services

54、 in the competitive specialty coffee market,including the following areas of focus:Oversight and ManagementWe recognize the diversity of customers,partners,and communities and believe in creating an inclusive and equitable environment that represents a broadspectrum of backgrounds and cultures.Worki

55、ng under these principles,our Partner Resources Organization is tasked with managing employment-relatedmatters,including recruiting and hiring,onboarding and training,compensation planning,performance management,and professional development.Our Boardof Directors(the“Board”)and Board committees provi

56、de oversight on certain human capital matters,including our Inclusion and Diversity initiatives.Asnoted in its charter,our Compensation and Management Development Committee is responsible for periodically reviewing Starbucks partner resourceprograms and initiatives,including healthcare and other ben

57、efits,as well as our management development and succession planning practices and strategies.Our Audit and Compliance Committee works closely with the Risk Management Committee,led by Starbucks chief financial officer(“cfo”)and chief legalofficer,to monitor and mitigate current and emerging labor an

58、d human capital management risks.Our Environmental,Partner,and Community ImpactCommittee annually reviews and assesses the effectiveness of the Companys environmental and social3Table of Contentsstrategies,policies,practices,goals,programs,disclosure,and risks,including review of the Companys annual

59、 global climate and social impact report.These reports and recommendations to the Board and its committees are part of the broader framework that guides how Starbucks should attract,retain,anddevelop a skilled workforce that aligns with our values and strategies.We regularly conduct anonymous survey

60、s to seek feedback from our partners on a variety of topics,including confidence in company leadership,competitiveness of our compensation and benefits package,career growth opportunities,and recommendations on how we can remain an employer of choice.The results are shared with our partners and revi

61、ewed by senior leadership,who analyze areas of progress or deterioration and prioritize actions and activitiesin response to this feedback to drive meaningful improvements in partner engagement.Our management and cross-functional teams also work closely toevaluate human capital management issues suc

62、h as partner retention,workplace safety,harassment,and bullying,as well as to implement measures to mitigatethese issues.Diversity,Equity,Inclusion,and BelongingAs we create the future of Starbucks,we are continuing to work to improve the partner experience so our partners can thrive at work,individ

63、ually,and together.Core to this is taking steps to ensure that Starbucks is an inclusive,diverse,equitable,and accessible companya place where all are welcome and where ourpartners know they belong.Under the leadership of our senior vice president of Talent and Inclusion and our executive leadership

64、 team,we remain committed to accountability at everylevel of the Company.We prioritize transparency with our partners,Inclusion and Diversity Executive Council,Partner Networks,Inclusion and DiversityBusiness Council,community leaders,customers,and stakeholders.At Starbucks,we are committed to creat

65、ing environments where everyone is welcome and belongs.In 2024,we reaffirmed this commitment by cementing“Belonging”as one of our company values.These values have long been part of our culture,and we are working to build a more inclusive,equitable,accessible,and diverse company,to make substantialpr

66、ogress in the representation of our partners and to expand opportunities for our partners.To further this:we worked to reach a broader pool of candidates,prioritizing inclusivity in our recruitment,in partner engagement,and by continuing to fosterinclusive leadership;we established and expanded our

67、mentorship program to make valuable guidance and networking opportunities available to all partners;and we remained focused on addressing barriers impeding equal pay for equal work.At the end of fiscal 2024,our U.S.partner base is made up 70.9%female and 28.4%male.Additionally,in the U.S.diverse par

68、tners represent more than 51.9%of our retail team and more than 37.9%of our corporate roles.We are expanding workforce diversity to bring new perspectives and experiences that improve our business and workplace.To do this,we reach a broader poolof candidates and talent by prioritizing inclusivity in

69、 our recruitment practices,in partner engagement,and by continuing to foster inclusive leadership.Total RewardsWe have demonstrated a history of investing in our workforce by offering competitive salaries and wages by continuously assessing the current businessenvironment and labor market.We have co

70、nsistently 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 stock units are provided to eligiblenon-executive partners un

71、der our broad-based stock incentive programs.Furthermore,we offer comprehensive,locally relevant and innovative benefits to alleligible partners.The following list summarizes key benefits provided in the U.S.,which is our largest and most mature market:Comprehensive health insurance coverage is offe

72、red 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 each week.Ou

73、r 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.4Table of Contents 1

74、00%paid parental leave is available to new parents that welcome a child through birth,adoption,or foster placement and work an average of 20hours or 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

75、forthemselves or family members in need of care.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 mental health

76、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 extra 14th Mont

77、h 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 partners.Role-ba

78、sed 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 our Pour Over

79、 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 and communi

80、ties.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 employer of cho

81、ice 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.Starbucks is committed to pay equity.Weve achieved and maintained racial and gender pa

82、y equity for partners in the U.S.who are performing similar work,and were working toward achieving gender pay equity for Starbucks partners who are performing similar work in all of our company-operated marketsglobally.Further,we have formulated pay-equity principles,which provide equal footing,tran

83、sparency,and accountability as best practices that help addressknown,systemic barriers to global pay equity.As of September 29,2024,Starbucks employed approximately 361,000 people worldwide.In the U.S.,Starbucks employed approximately 211,000 people,with approximately 201,000 in company-operated sto

84、res and the remainder in corporate support,store development,roasting,manufacturing,warehousing,anddistribution operations.Approximately 150,000 employees were employed outside of the U.S.,with approximately 144,000 in company-operated stores and theremainder in regional support operations.Approxima

85、tely 5%of Starbucks partners in U.S.company-operated stores are represented by unions.We believe ourefforts in managing our workforce have been effective,evidenced by low turnover,a strong culture,and active employee participation.Information about our Executive OfficersNameAgePositionBrian Niccol50

86、chairman and chief executive officerRachel Ruggeri55executive vice president,chief financial officerBrady Brewer51chief executive officer,Starbucks InternationalSara Kelly45executive vice president,chief partner officerBrad Lerman68executive vice president,chief legal officerBrian Niccol joined Star

87、bucks as its chairman and chief executive officer in September 2024.Mr.Niccol spent more than 25 years in leadership,marketing,and operations roles for some of the worlds most respected brands.Mr.Niccol joined Starbucks after leading Chipotle Mexican Grill,Inc.through a period ofgrowth and transform

88、ation,having served as a director and as its chief executive officer from 2018 to 2024 and as its chairman,from 2020 to 2024.Beforejoining Chipotle,he served as chief executive officer of Taco Bell,a division of Yum!Brands,Inc.,from 2015 to 2018,after having served as its President(2013 to 2014)and

89、chief marketing and innovation officer(2011 to 2012).Mr.Niccol also served in leadership roles at Pizza Hut,another division of Yum!Brands from 2005 to 2011.Mr.Niccol currently serves on the Board of Directors of Walmart Inc.,a NYSE-listed omni-channel retailer.5Table of ContentsRachel Ruggeri joine

90、d Starbucks in 2001 as a member of the accounting team and was named executive vice president and chief financial officer in 2021.InAugust 2024,she served as interim chief executive officer during Starbucks recent chief executive officer transition.In her role as chief financial officer,Ms.Ruggeri i

91、s responsible for the global finance function for Starbucks,which includes developing and executing the financial strategies that enable the long-termgrowth of the Company.Prior to her promotion in 2021,she served as senior vice president of Americas with responsibility for the retail portfolio acro

92、ss thesegment,including company-operated and licensed stores from 2020 to 2021.From 2016 to 2020,she held various leadership roles in finance both internal andexternal to Starbucks,including Chief Financial Officer of Continental Mills from 2018 to 2020 and prior to that she was senior vice presiden

93、t of Finance atStarbucks in support of the Americas and Global Retail from 2016 to 2018.She also served as vice president of Finance from 2010 to 2016 supportingCorporate Financial Planning&Analysis and the U.S.Retail business.Ms.Ruggeri currently serves on the Board of Directors of Stryker Corporat

94、ion,aNYSE-listed medical technologies company.Brady Brewer joined Starbucks in 2001 and has served as chief executive officer,Starbucks International since April 2024,where he is responsible for theteams across Asia Pacific,Europe,Middle East,Africa,Japan,Latin America,and the Caribbean,as well as G

95、lobal Channel Development and the Companysinternational licensed partners.From February 2020 through March 2024,he served as Starbucks executive vice president and chief marketing officer,leadingthe Starbucks brand,marketing,food and beverage portfolio,digital customer experience innovation,R&D/Engi

96、neering,creative and brand management,consumer insights,data analytics,and sustainability.His prior roles at Starbucks include senior vice president of Digital Customer Experience for Starbucks(2019 through February 2020),where he focused on delivering new innovations that made the Starbucks Experie

97、nce continually more effortless and delightfulfor customers;chief operating officer for Starbucks Japan(2016 to 2019),where he led store operations as well as brand and marketing strategy;and seniorvice president,Marketing and Product for the Companys China and Asia Pacific region(2014 to 2016).Sara

98、 Kelly joined Starbucks in 2001 and has served as executive vice president and chief partner officer since 2022,where she is responsible for helpingpartners realize their career potential and building global partner capability to enable growth and deliver on the Companys strategic plan.Prior to her

99、currentrole,Ms.Kelly was senior vice president,Talent&Partner Experience from 2021 to 2022,where she was responsible for advancing Starbucks talent andorganizational leadership agenda and was focused on amplifying the strategic work being led by the talent acquisition,talent management,partner exper

100、ience,learning and development,and organization and leadership effectiveness teams.From 2014 to 2021,Ms.Kelly served as vice president,Partner Resources,supporting partners in our global markets.Brad Lerman joined Starbucks in April 2023 as executive vice president and general counsel and has served

101、 as executive vice president and chief legal officersince April 2024.In this role,he leads the Companys Legal and Corporate Affairs organization.Prior to Starbucks,Mr.Lerman served as senior vice president,general counsel and corporate secretary of Medtronic plc from 2014 to 2022;and executive vice

102、president,general counsel and corporate secretary for theFederal National Mortgage Association(Fannie Mae)from 2012 to 2014.Mr.Lerman has also served as chief litigation counsel for Pfizer and has worked inprivate practice as a partner at Winston&Strawn LLP in Chicago.He also served as an Assistant

103、United States Attorney in the Northern District of Illinois.Mr.Lerman currently serves on the Board of Directors of McKesson Corporation,a NYSE-listed health care,pharmaceutical,and medical supply company.Segment Financial InformationSegment information is prepared on the same basis that our ceo,who

104、 is our Chief Operating Decision Maker,manages the segments,evaluates financial results,and makes key operating decisions.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

105、East,Africa,Latin America,and the Caribbean;and 3)Channel Development.Unallocated corporate expenses are reportedwithin Corporate and Other.Revenues from our reportable operating segments as a percentage of total net revenues for fiscal 2024 were as follows:NorthAmerica(75%),International(20%),and C

106、hannel 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 various stages of development and m

107、ay 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-branded single-serve products,a variety of ready-to-drinkbeverages,such as Frap

108、puccino and Starbucks Doubleshot,foodservice products,and other branded products sold worldwide outside of our company-operated and licensed stores.A large portion of our Channel Development business operates under a licensed model of the Global Coffee Alliance with Nestl,while our global ready-to-d

109、rink businesses operate under collaborative relationships with PepsiCo,Inc.,Tingyi-Ashi Beverages Holding Co.,Ltd.,Arla Foodsamba,Nestl,and others.6Table of ContentsRevenue ComponentsWe generate the majority of our revenues through company-operated stores and licensed stores.Company-operated and Lic

110、ensed Store Summary as of September 29,2024:North AmericaAs a%of TotalNorth America StoresInternationalAs a%of TotalInternational StoresTotalAs a%ofTotal StoresCompany-operated stores11,161 61%9,857 45%21,018 52%Licensed stores7,263 39%11,918 55%19,181 48%Total18,424 100%21,775 100%40,199 100%The mi

111、x 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 ability to leverage the support infrastruct

112、ure within ageographic region.Company-operated StoresRevenue from company-operated stores accounted for 82%of total net revenues during fiscal 2024.Our retail objective is to be the leading retailer and brandof coffee and tea in each of our target markets by selling the finest quality coffee,tea,and

113、 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 well-maintained stores that reflect the p

114、ersonalities 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 newand existing markets,as well as incre

115、asing 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 expected financialreturns,the maturity of the ma

116、rket,economic conditions,consumer behavior,and the local business environment.Company-operated store data for the fiscal year-ended September 29,2024:Stores Openas ofStores Openas of Oct 1,2023OpenedClosedTransfersNetSep 29,2024North America:U.S.9,645 611(96)(2)513 10,158 Canada977 37(17)20 997 Sire

117、n Retail6 6 Total North America10,628 648(113)(2)533 11,161 International:China6,804 855(65)790 7,594 Japan1,733 90(14)76 1,809 U.K.355 32(9)23 378 All Other67 4 4 71 Siren Retail5 5 Total International8,964 981(88)893 9,857 Total company-operated19,592 1,629(201)(2)1,426 21,018 Starbucks company-op

118、erated 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,university campuses,and rural and off-highwaylo

119、cations.We are continuing the expansion of our stores,particularly drive-thru formats that provide a higher degree of access and convenience,as well asother store formats that cater to a variety of customer needs.7Table of ContentsRetail sales mix by product type for company-operated stores:Fiscal Y

120、ear EndedSep 29,2024Oct 1,2023Oct 2,2022Beverages74%74%74%Food23%22%22%Other3%4%4%Total100%100%100%“Other”primarily consists of serveware,packaged and single-serve coffees and teas,and ready-to-drink beverages,among other items.Stored Value Cards and Loyalty ProgramOur branded stored value card prog

121、ram(the“Starbucks Card”)is designed to provide customers with a convenient payment method,support gifting,andincrease the frequency of store visits by cardholders,in part through the related Starbucks Rewards loyalty program where available,as discussed below.Starbucks Cards are issued to customers

122、when they initially load them with an account balance.They can be obtained in our company-operated and mostlicensed stores in North America,China,Japan,and many of our other markets in our International segment.Starbucks Cards can also be obtained online,viathe Starbucks Mobile App,and through other

123、 U.S.and international retailers.Customers may access their card balances by utilizing their Starbucks Card orthe Starbucks Mobile App in participating stores.In nearly all markets,including the U.S.and Canada,customers who register their Starbucks Cards areautomatically enrolled in the Starbucks Re

124、wards program.Registered members can receive various benefits depending on factors such as the number of rewardpoints(“Stars”)earned.In addition to using their Starbucks Cards,Starbucks Rewards members can earn Stars by paying with cash,credit or debit cards,orselected mobile wallets at all company-

125、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 certain participating locations in several markets.Refer to Note 1,Summaryof Significant Accounting Pol

126、icies and Estimates,included in Item 8 of Part II of this 10-K,for further discussion of our Starbucks Cards and loyalty program.Licensed StoresRevenues from our licensed stores accounted for 12%of total net revenues in fiscal 2024.Licensed stores generally have a lower gross margin and a higheroper

127、ating 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.Licensees are responsible for operating costs and capital investments,which more than offset the low

128、errevenues 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.Licenseesprovide improved,and at times the only,access to desirable retail space.Most licensees are p

129、rominent 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 license fees from thelicensees.We also sell certain equipment,such as coffee brewers and espresso mach

130、ines,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 similar to those given toemployees in company-operated stores.In a limited number of international marke

131、ts,we also use traditional franchising and include these stores in the resultsof operations from our other licensed stores.(1)(1)8Table of ContentsLicensed store data for the fiscal year-ended September 29,2024:Stores Openas ofStores Openas of Oct 1,2023OpenedClosedTransfersNetSep 29,2024North Ameri

132、ca:U.S.6,701 232(158)2 76 6,777 Canada481 26(21)5 486 Total North America7,182 258(179)2 81 7,263 International:Korea1,870 144(34)110 1,980 Latin America1,649 139(83)56 1,705 U.K.911 87(22)65 976 Turkey676 46 46 722 Taiwan563 24(16)8 571 Indonesia581 30(8)22 603 Thailand474 40(1)39 513 Philippines44

133、7 33(1)32 479 All Other4,093 426(150)276 4,369 Total International11,264 969(315)654 11,918 Total licensed18,446 1,227(494)2 735 19,181 Other RevenuesOther revenues primarily are recorded in our Channel Development segment and include sales of packaged coffee,tea,and ready-to-drink beverages tocusto

134、mers 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 committed to selling the finest whole bean coffees and coffee beverages.To help ensure compliance with our

135、 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 Starbucks packaged coffee products outside of Starbucks stores through the Global Coffee Alliance,and i

136、n 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 many blends and single-origin coffees.The price of coffee is subject to significant volatility.Although mo

137、st 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 the premium and the commodity price dependupon the supply and demand at the time of purchase.Supply and pr

138、ice 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 pests,general increases in farm inputs and costs ofproduction,inventory levels,and political and economi

139、c 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 funds.In addition,green coffee prices have been affected inthe past,and may be affected in the future,by

140、 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 supplies.We buy coffee using fixed-price and price-to-be-fixed purchase commitments,depending on market co

141、nditions,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 contracts and ourlong-term forecasted coffee demand where underlying fixed-price and price-to-be-fixed contr

142、acts are not yet available.Total purchase commitments,togetherwith existing inventory,are expected to provide an adequate supply of green coffee through fiscal 2025.We depend upon our relationships with coffee producers,outside trading companies,and exporters for our supply of green coffee.We believ

143、e,based on theestablished relationship and historical performance of our suppliers,that the risk of non-delivery on such purchase commitments is remote.9Table of ContentsTo help ensure the future supply of high-quality green coffee and to reinforce our leadership role in the coffee industry,Starbuck

144、s 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 coffee farming communities to promote best practices in coffee producti

145、on designed to improve bothcoffee quality and yields as well as 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 degree,plant-based dairy-free alternative products,such as oat milk

146、 and almond milk,to support the needs of our company-operated stores.We believe,based on the established relationship and historicalperformance of our dairy and plant-based dairy-free suppliers,that the risk of non-delivery of sufficient fluid milk and plant-based dairy-free alternatives tosupport o

147、ur stores generally is remote.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 products,such as pastries,breakfast

148、 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 distribution operations.We are also

149、 expanding our use of reusablepackaging to reduce landfill waste.We believe,based on the established relationship and historical performance of our suppliers and manufacturers,that therisk of non-delivery of sufficient amounts of these items generally is remote.CompetitionOur primary competitors for

150、 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 large co

151、mpetitors 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 qualifiedpersonnel to

152、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 also compete indirectly ag

153、ainst 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,Starbucks

154、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 for

155、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 duration of approximately thirteen years.In addition,Starbucks has registered andmaintains numerous Internet doma

156、in 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 ho

157、liday 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 theStarbucks Cards,the impact of seasonal fluctuations on the consolidated statements

158、of earnings is much less pronounced.As a result of moderate seasonalfluctuations,results for 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

159、the United 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,repor

160、ting obligations,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

161、on Form 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

162、or furnished 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.Our corporate governance policies,codeof ethics,and Board committee charters and p

163、olicies are also posted on the Investor Relations section of our website.We also use the Investor Relations sectionof our website and our social media channels as tools to disclose important information about the Company and comply with our disclosure obligations underRegulation Fair Disclosure.We e

164、ncourage investors and others to review the information we make public on the Investor Relations section of our website andour social media channels,as such information could be deemed material information.The information on our website(or any webpages referenced in thisReport)or our social media ch

165、annels is not part of this or any other report Starbucks files with,or furnishes to,the SEC,and all website addresses in this reportare intended to be inactive textual references only.Item 1A.Risk FactorsYou should carefully consider the risks described below in addition to the other information set

166、 forth in this Annual Report on Form 10-K,including theManagements Discussion 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.The risks described b

167、elow are not the only risks facing the Company.Risks anduncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business,financial condition,andoperating results.Summary of Risks Associated with Our BusinessOur business is subject t

168、o various risks and uncertainties that you should consider before investing in the Company.These risks are described in more detail inthis Item 1A.These risks include,but are not limited to,the following:Risks Related to Brand Relevance and Brand ExecutionOur success depends substantially on the val

169、ue of our brands,and failure to preserve their value could have a negative impact on our financial results.We may not be successful in our marketing strategies,promotional and advertising plans,and pricing strategies.Risks Related to Our BusinessWe may not be successful in implementing important str

170、ategic initiatives or effectively managing growth,which may have an adverse impact on ourbusiness and financial results.Our investments to transform and enhance the customer experience,including through technology,may not generate the expected results.Evolving consumer preferences and tastes,as well

171、 as adverse public or medical opinions about the health effects of consuming our products,mayadversely affect our business.If our business partners and third-party providers do not satisfactorily fulfill their responsibilities and commitments,it could damage our brand,andour financial results could

172、suffer.Reported incidents involving food-or beverage-borne illnesses,tampering,adulteration,contamination,or mislabeling,whether or not accurate,couldharm our business.If we are unable to meet our projections for new store openings or efficiently maintain the attractiveness of our existing stores,ou

173、r operating resultscould suffer.Risks Related to Operating a Global BusinessWe are highly dependent on the financial performance of our North America operating segment.We are increasingly dependent on the success of certain international markets in order to achieve our growth targets.We face risks a

174、s a global business that could adversely affect our financial performance.Our reliance on key business partners may adversely affect our business and operations.11Table of ContentsRisks Related to Supply ChainIncreases in the cost of high-quality arabica coffee beans or other commodities or decrease

175、s in the availability of high-quality arabica coffee beans orother commodities could have an adverse impact on our business operations and financial results.Our supply chain may be unable to fully support current and future business needs.Interruption of our supply chain and our reliance on supplier

176、s could affect our ability to produce or deliver our products and could negatively impactour business and profitability.Risks Related to Macroeconomic ConditionsOur financial condition and results of operations are subject to,and may be adversely affected by,a number of macroeconomic and other facto

177、rs,many of which are largely outside our control.Economic conditions in the U.S.and international markets have adversely affected,and could continue to adversely affect,our business and financialresults.Failure to meet our announced guidance or market expectations for our financial performance will

178、likely adversely affect the market price and increasethe volatility of our stock,and fluctuations in the stock market as a whole may also impact the market price and volatility of our stock.Risks Related to Human CapitalThe loss of key personnel,difficulties with recruiting and retaining qualified p

179、ersonnel,or ineffectively managing changes in our workforce couldadversely impact our business and financial results.Changes in the availability and cost of labor could adversely affect our business.Risks Related to CompetitionWe face intense competition in each of our channels and markets,which cou

180、ld lead to reduced profitability.Risks Related to Environmental,Social,and Governance MattersClimate change may have an adverse impact on our business.Our business is subject to evolving corporate governance and public disclosure regulations and expectations,including with respect to environmental,s

181、ocial,and governance matters,that could expose us to numerous risks.Certain activist shareholder actions have caused,and could continue to cause,us to incur expense,hinder execution of our business strategy,andadversely impact our stock price.Risks Related to Regulation and LitigationFailure to comp

182、ly with applicable laws and changing legal and regulatory requirements could harm our business and financial results.We have been,and could continue to be,party to litigation or other legal proceedings that could adversely affect our business,results,operations,andreputation.Risks Related to Cyberse

183、curity and Data PrivacyFailure to maintain satisfactory compliance with certain privacy and data protection laws and regulations may result in substantial negative financialconsequences,reputational harm,and civil or criminal penalties.The unauthorized access,use,theft,or destruction of customer or

184、employee data(personal,financial,or other),or of Starbucks proprietary orconfidential information that is stored in our information systems or by third parties on our behalf,could impact our reputation and brand and exposeus to potential liability and loss of revenues.We rely heavily on information

185、technology in our operations and growth initiatives,and any material failure,inadequacy,interruption,or securityfailure of that technology could harm our ability to effectively operate and grow our business and could adversely affect our financial results.Risks Related to Intellectual PropertyFailur

186、e to adequately protect our intellectual property or ensure that we are not infringing on the intellectual property of others could harm the value ofour brand and our business.12Table of ContentsRisks Related to Brand Relevance and Brand ExecutionOur success depends substantially on the value of our

187、 brands,and failure to preserve their value could have a negative 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 environmental and social impact pr

188、ograms.The Starbucks brand is recognized throughout most of 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

189、leverage the value of our brands across all sales channels.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

190、events.Such incidents can potentially trigger boycotts of our stores or result in civil or criminal liability,which 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 inter

191、national privacy laws,contaminated food,product recalls,store 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

192、publicity,including rapidlythrough social or digital media(including for malicious reasons),or if they result in litigation.Negative postings or comments on social media or networkingwebsites about Starbucks,even if inaccurate or malicious,have in the past,and could in the future,generate negative p

193、ublicity about Starbucks across mediachannels that could damage the value of our brand.It may be difficult to address such negative publicity,including as a result of fictitious media content(suchas content produced by generative artificial intelligence or bad actors)across media channels.Additional

194、ly,consumer demand for our products and our brandvalue could diminish significantly if we,our employees,licensees,or other business partners fail to preserve the quality of our products,act or are perceived toact in an unethical,illegal,racially-biased,unequal,inequitable,or socially irresponsible m

195、anner,including with respect to the sourcing,content,or sale of ourproducts,service and treatment of customers at Starbucks stores,treatment of employees,including our responses to unionization efforts,or the use ofcustomer data for general or direct marketing or other purposes.Allegations,even if u

196、ntrue,that we are not respecting internationally recognized human rights,are failing to comply with applicable workplace and labor laws,or are aligned with positions on social or geopolitical issues could also negatively impact ourbrand value.Additionally,if we fail to comply with laws and regulatio

197、ns,take controversial positions or actions,fail to deliver a consistently positive consumerexperience in each of our markets,including by failing to invest in the right balance of wages and benefits to attract and retain employees who represent thebrand well,or fail to foster an inclusive and divers

198、e environment,our brand value may be diminished.In addition,we cannot ensure that our store partners,licensees,or other business partners will not take actions that adversely affect the value and relevance of our brand.Furthermore,if we are not effective in making sufficient progress toward our envi

199、ronmental and social program goals,consumer trust in our brand may suffer,and this perception could result in negative publicity or litigation.The ongoing relevance of our brand may depend on making sufficient progress toward ourenvironmental and social program goals,each of which requires company-w

200、ide coordination and alignment.Increased public focus,including by governmentaland nongovernmental organizations,on environmental sustainability matters,including climate change,diminishing energy and water resources,packaging andwaste,deforestation,biodiversity loss,greenhouse gas emissions,and lan

201、d use,may result in increased pressure to set goals and take actions to meet them,which could expose us to market,operational,and execution costs or risks.Statements regarding our environmental and social program goals reflect ourcurrent plans and aspirations;our environmental and social program-rel

202、ated policies,practices,and goals are voluntary,challenging,and subject to change atour discretion.Some third parties may object to the scope or nature of our environmental and social program initiatives or goals,or any revisions to theseinitiatives or goals,which could give rise to negative respons

203、es by governmental actors(such as retaliatory legislative treatment),consumers(such as boycottsor negative publicity campaigns),or other third parties that could adversely affect our brand value.We may not be successful in our marketing strategies,promotional and advertising plans,and pricing strate

204、gies.Our continued success depends in part on our ability to adjust our marketing strategies,promotional and advertising plans,and pricing strategies to respondquickly and effectively to shifting economic and competitive conditions as well as evolving customer preferences.We operate in a complex and

205、 costlymarketing,promotional,and advertising environment.Competition to attract and retain high-quality marketing partners and endorsers has increased.Ourdecisions to collaborate or to cease collaborating with certain endorsers or marketing partners in light of actions taken or statements made by th

206、em couldseriously harm our brand image with consumers and,as a result,could have an adverse effect on our sales and financial condition.Our marketing,promotional,and advertising programs may not be successful in reaching consumers in the way we intend.Our success depends in part on whether the alloc

207、ation of ouradvertising,promotional,and marketing resources across different channels,including digital,allows us to effectively and efficiently reach consumers in waysthat are meaningful to them.Additionally,many factors,including operating costs,constraints,or changes,and our current and future co

208、mpetitors pricing13Table of Contentsand marketing strategies,could significantly affect our pricing strategies(including price reductions,promotions,discounts,coupons,or free goods),whichmay prevent us from competing effectively in certain geographies.For example,historically,in order to partially o

209、ffset inflation and other increases in the costsof core operating resources,we have gradually increased menu prices.There can be no assurance that future cost increases,including as a result of inflation,can be offset by increased menu prices or that our current or future menu prices will be fully a

210、bsorbed by our customers without any resulting change to theirdemand for our products.If the advertising,promotional,and marketing programs or our pricing strategies are not successful or are not as successful as thoseof our competitors,our sales and market share could decrease.Finally,consumers are

211、 focusing more on sustainability and the environmental impacts of Starbucks operations,as well as the alignment of Starbucks actionswith its stated mission,values,and promises.An inability to meet consumer expectations with respect to these issues could adversely affect our financialresults.Risks Re

212、lated to Our BusinessWe may not be successful in implementing important strategic initiatives or effectively managing growth,which may have an adverse impact on ourbusiness and financial results.We may not be able to implement important strategic initiatives in accordance with our expectations or th

213、at generate expected returns,which may result in anadverse impact on our business and financial results.These strategic initiatives,which include our Back to Starbucks plan,are designed to create growth,improve our results of operations,and drive long-term shareholder value,and include:being an empl

214、oyer of choice and investing in partners 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;simplifyi

215、ng store administrative tasks to allow store partners to better engage with customers;increasing the scale of the Starbucks store footprint with disciplined global expansion and continuing to introduce flexible and unique store formats incertain markets;adjusting rapidly to changing customer prefere

216、nces and behaviors as a result of changing economic conditions and increased global interest rates andinflation;moving to a more licensed store model in certain markets and a more company-operated model in other markets;creating new occasions in stores across all dayparts with new product offerings,

217、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 Nestl and otherChannel Development business partners;delivering continued growth in our cold beverage business;w

218、orking to address the potential effects of climate change and the sustainability of our business;andreducing our operating costs,particularly general and administrative expenses.In addition to other factors listed in this risk factors section,factors that may adversely affect the successful implemen

219、tation of these initiatives,which couldhave a material adverse impact on our business and financial results,include the following:delays or cancellations of store openings for reasons beyond our control,such as potential shortages of materials and labor,delays in permits,or a lackof desirable real e

220、state locations available for lease at reasonable rates,any of which could keep us from meeting annual store opening targets in theU.S.and internationally;not successfully scaling our supply chain infrastructure as we continue to expand;not successfully adapting to customer or market factors affecti

221、ng our supply chain as we work to address sustainability goals and mitigate the impactsof climate change;14Table of Contentsinability to timely innovate with new product offerings,or the potential that such offerings may not be well-received by consumers;delays or cancellations of remodels based on

222、changes in macroeconomic conditions,changes in expected project benefits,or other factors;construction cost increases associated with new store openings and remodeling of existing stores;the challenges of company-wide coordination and alignment;inability to identify or act on opportunities to delive

223、r anticipated cost savings;imposition of additional taxes by jurisdictions,such as on certain types of beverages or based on number of employees;governmental regulations or other health guidelines concerning operations of stores,including due to public health emergencies;deterioration in our credit

224、ratings,which could limit the availability of additional financing and increase the cost of obtaining financing to fund ourinitiatives;andgeopolitical instability and international conflicts.Effectively managing growth can be challenging,particularly as we continue to expand in international markets

225、 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 initiatives,or,in the event we undertake large acquisitions,integrations,and dives

226、titures,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 results.Our investments to transform and enhance the customer experience,including th

227、rough technology,may not generate the expected results.Our long-term business objectives depend on the successful execution of our strategies.We continue to build upon our investments in development,technology,digital engagement,and delivery in order to transform and enhance the customer experience.

228、As part of these investments,we continue to focus on improvingour service model and strengthening relationships with customers,in part through digital channels and loyalty initiatives,mobile order and payment systems,and enhancement of our technologies.We also continue to expand and refine our mobil

229、e ordering process.If these customer experience initiatives are notsuccessfully executed or do not generate expected results,or if we do not fully realize the intended benefits of these significant investments,our financialresults may suffer.It is also possible that the greater allocation of time an

230、d resources to these customer experience initiatives versus other organizationalpriorities could negatively impact other areas of our business,or that we will fail to achieve optimal allocation of resources,which could materially harm ourbusiness and results of operations.Evolving consumer preferenc

231、es and tastes,as well as adverse public or medical opinions about the health effects of consuming our products,may adverselyaffect 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 spendi

232、ngaway from outside-the-home food and beverages(such as a reduction in discretionary spending);lack of customer acceptance of new products(including dueto price increases necessary to cover the costs of new products or higher input costs),brands(such as the global expansion of the Starbucks brand),a

233、ndplatforms(such as features of our mobile technology,changes in our loyalty rewards programs,and our delivery services initiatives);or customers reducingtheir demand for our current offerings as new products are introduced.In addition,some of our products contain caffeine,dairy products,sugar,and o

234、thercompounds and allergens,the health effects of which are the subject of public and regulatory scrutiny,including the suggestion of linkages to a variety ofadverse health effects.Particularly in the U.S.,there is increasing consumer awareness of health risks,including obesity,as well as increased

235、consumerlitigation based on alleged adverse health impacts of consumption of various food and beverage products.An unfavorable report on the health effects ofcaffeine or other compounds present in our products,whether or not accurate,imposition of additional taxes on certain types of food and bevera

236、ge components,or negative publicity or litigation arising from certain health risks could significantly reduce the demand for our beverages and food products and materiallyharm our business and results of operations.Changes in diet(whether due to changes in consumer behavior and eating habits,use of

237、 weight-loss drugs,or otherfactors)could also influence the demand for our offerings and materially harm our business and results of operations.Our financial results have been,andcould continue to15Table of Contentsbe,adversely affected by changes in macroeconomic conditions,including those discusse

238、d in more detail elsewhere in this risk factors section.Such changeshave impacted,and could continue to impact,customer routines,employer“work-from-home”policies,and consumer behavior,including consumers ability orwillingness to spend discretionary income on our products.If our business partners and

239、 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 products,and other initiatives,relies significantly on a variety of busi

240、ness partners,including licensees,joint venture partners,third-party manufacturers,distributors,and retailers,particularly for our entire global Channel Developmentbusiness.Licensees,retailers,and foodservice operators are often authorized to use our logos and provide branded food,beverage,and other

241、 products directlyto customers.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 operations of,certain of these licensees and other business partners.However,the produ

242、ct quality and service theydeliver may still be diminished by any number of factors beyond our control,including financial constraints or solvency issues,adherence to sanitationprotocols and guidance,labor shortages,and other factors.We do not have direct control over our business partners and may n

243、ot have visibility into theirpractices.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 licensees directly.We do not monitor the quality of non-Starbucks products s

244、erved by foodservice operators who are authorizedto use our logos and provide branded products as part of their foodservice businesses.Failures by our licensees or business providers to comply with the lawsor regulations of their markets,or to otherwise meet the standards consumers associate with ou

245、r brand,may negatively impact our business.Additionally,inconsistent use of our brand and other intellectual property assets,as well as the failure to protect our intellectual property,could erode consumer trust anddiminish our brand value,which could result in a material negative impact on our fina

246、ncial results.Reported incidents involving food-or beverage-borne illnesses,tampering,adulteration,contamination,or mislabeling,whether or not accurate,couldharm our business.Instances or reports,whether true or not,of unclean water supply or food-safety issues,such as food-or beverage-borne illness

247、es,tampering,adulteration,contamination,and/or mislabeling,either during growing,manufacturing,packaging,transporting,storing,or preparation,have in the past severely injured thereputations of companies in the food and beverage processing,grocery,and quick-service restaurant sectors.Any report linki

248、ng us to such instances,even whenfalse,unfounded,or inaccurate,could materially harm our sales and could lead to product liability claims,litigation(including class actions),temporary storeclosures,or other adverse consequences.Validated food-safety issues can also result in regulatory action and ma

249、y lead to a recall of impacted products.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 stores can be limited,particularly in some international locations.We con

250、tinue to incorporate more products in our food and beveragelineup that require time and temperature control,including freezing or refrigeration,which increases the risk of food-safety related incidents if correcttemperatures are not maintained during manufacturing,storage,distribution to stores,and

251、at stores,due to mechanical malfunction or human error.We also face risk by relying on third-party food suppliers to manufacture finished products,and to provide and transport ingredients and finished products toour stores.The product quality and service they deliver may be diminished by any number

252、of factors beyond our control.Potential food safety incidents,whether at our stores,with our products,or involving our business partners,could lead to wide public exposure,regulatory action,and potential litigation,which could materially harm our business.A widespread Starbucks product recall could

253、result in significant losses due to the costs of a recall,the destruction of product inventory,and lost sales due tothe unavailability of product for a period of time,and could also subject us to product liability claims and negative publicity,all of which could materially harmour business.A decreas

254、e in customer traffic because of food-safety concerns or negative publicity,product recalls,viral-contaminated food or beverage claims,or other food or beverage-safety claims or litigation,or as a result of a temporary closure of any of our stores,could materially harm our business and results ofope

255、rations.Additionally,instances of food or beverage-safety issues,even those solely involving the restaurants or stores of competitors or of suppliers ordistributors(regardless of whether we use or have used those suppliers or distributors),could adversely affect our sales on a regional or global bas

256、is byresulting in negative publicity about us,even if no Starbucks suppliers or products are impacted,or the foodservice industry in general.16Table of ContentsIf we are unable to meet our projections for new store openings or efficiently maintain the attractiveness of our existing stores,our operat

257、ing results couldsuffer.Our growth depends in part on our ability to open new stores and operate them profitably on the forecasted timeline.In recent years,the costs of opening newstores increased due in part to construction labor inflation and increased costs of materials and equipment.In addition,

258、we incur substantial startup expenseseach time we open a new store,and it takes time to ramp up the sales and profitability of a new store,during which ramp-up period costs may be higher as wetrain new partners and build up a customer base.If we are unable to build the customer base that we expect o

259、r fail to overcome the higher startup expensesassociated with new stores,our new stores may not be as profitable as our existing stores.Our ability to open and profitably operate new stores is also subjectto various risks,such as the identification and availability of desirable locations;the negotia

260、tion of acceptable lease terms;the need to obtain all requiredgovernmental permits(including zoning approvals)and comply with other regulatory requirements,including health and safety;the availability of capablecontractors and subcontractors;increases in the cost and decreases in the availability of

261、 labor and building material;changes in weather,natural disasters,pandemics,or other acts of God that could delay construction and adversely affect guest traffic;our ability to hire and train qualified management and storepartners;and general economic and business conditions.At each potential locati

262、on,we compete with other foodservice and retail businesses for desirabledevelopment sites,construction contractors,management personnel,partners,and other resources.It is also possible that our new stores may negatively impactthe profitability of existing stores nearby.If we are unable to successful

263、ly manage these risks,we could face increased costs and lower-than-anticipated salesand earnings in future periods,which could have a material negative effect on our operating results.In addition,we continue to improve our existing stores through remodels,upgrades,and regular upkeep.If the costs ass

264、ociated with remodels,upgrades,orregular upkeep are higher than anticipated,stores are closed for remodeling for longer periods than planned,or remodeled stores do not perform as expected,we may not realize our projected return on investment,which could have a material negative effect on our operati

265、ng results.Risks Related to Operating a Global BusinessWe are highly dependent on the financial performance of our North America operating segment.Our financial performance is highly dependent on our North America operating segment,which comprised approximately 75%of consolidated total netrevenues i

266、n fiscal year 2024.If the North America operating segment revenue trends slow or decline,especially in our U.S.market,our other segments may beunable to make up any significant shortfall,and our business and financial results could be adversely affected.Since the North America segment is relativelym

267、ature and produces the large majority of our operating cash flows,such a slowdown or decline could result in reduced cash flows for funding the expansion ofour international businesses and other initiatives and for returning cash to our shareholders.We are increasingly dependent on the success of ce

268、rtain international markets in order to achieve our growth targets.Our future growth increasingly depends on the growth and sustained profitability of certain international markets.Some or all of our international marketbusiness units(“MBUs”),which we generally define by the markets in which they op

269、erate,may not be successful in their operations or in achieving expectedgrowth,which ultimately requires achieving consistent,stable net revenues and earnings.The performance of these international operations may be adverselyaffected by economic downturns in one or more of the markets in which our l

270、arge MBUs operate.A decline in performance of one or more of our significantinternational MBUs could have a material adverse impact on our consolidated results.The International segment is an important profit center driving our global returns,along with our North America segment.In particular,our Ch

271、ina MBU,as oursecond-largest market overall and 100%company-operated,contributes meaningfully to both consolidated and International net revenues and operatingincome.Due to the significance of our China MBU for our profit and growth,we are exposed to risks in China,including the risks mentioned else

272、where andthe following:a highly competitive retail environment and the 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,and real estate

273、 and supply chain costs;the effects of U.S.-China relations,including escalating U.S.-China tension and increased anti-Americanism,potential tariff increases,retaliations,restrictive regulations,or boycotts,and increasing political sensitivities in China;ongoing government regulatory reform,includin

274、g relating to public health,food safety,tariffs and taxes,sustainability,and responses to climatechange,which result in regulatory uncertainty as well as potential significant increases in compliance costs;data privacy and cybersecurity risks unique to the conduct of business in China;and17Table of

275、Contentsfood 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 overall are different than those affecting our U.S.stores andlicensees

276、.Tastes naturally vary by region,and consumers in some international MBUs may not embrace our products to the same extent as consumers in theU.S.or other international markets.Occupancy costs and store operating expenses can be higher internationally than in the U.S.due to higher rents for primestor

277、e locations or costs of compliance with market-specific regulatory requirements.Because many of our international operations are in an early phase ofdevelopment,operating expenses as a percentage of related revenues are often higher compared to more developed operations.We face risks as a global bus

278、iness that could adversely affect our financial performance.We operate in 87 markets globally.We encounter differing cultural,regulatory,geopolitical,and economic environments within and among the markets inwhich we operate,and our ability to achieve our business objectives depends on our ability to

279、 successfully navigate these differing environments.Our ability tomeet customer expectations is complicated by the risks inherent in our global operating environment,and our global success is partially dependent on ourability to leverage operating successes across multiple markets.Planned initiative

280、s may not have appeal across multiple markets with our customers and coulddrive unanticipated changes in customer perceptions and market share.Our international operations are also subject to additional inherent risks of conducting business abroad,such as:changes or uncertainties in economic,legal,r

281、egulatory,social,and political conditions in our markets,as well as negative effects on U.S.businessesdue to increasing anti-American sentiment in certain markets;restrictive actions of foreign or U.S.governmental authorities affecting trade and foreign investment,especially during periods of height

282、ened tensionbetween the U.S.and such foreign governmental authorities,including protective measures such as export and customs duties and tariffs,governmentintervention favoring local competitors,and restrictions on the level of foreign ownership;delays in store openings for reasons beyond our contr

283、ol,competition with 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.difficulty in st

284、affing,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 retaining high-

285、quality employees in local markets;economic or trade sanctions affecting our ability to source products or conduct business in one or more of the markets in which we operate;in developing economies,the growth rate in the portion of the population achieving sufficient levels of disposable income may

286、not meet ourprojections;interpretation and application of laws and regulations,including those relating to taxes,tariffs,labor,merchandise,anti-bribery,privacy,andenvironmental,social,and governance issues;local laws,policies,and conditions that make it more expensive and complex to negotiate with,r

287、etain,or terminate employees;labor strikes or work stoppages resulting from geopolitical instability or social unrest affecting one or more of the markets in which we operate;local regulations,health guidelines,and safety protocols affecting our operations;the enforceability of intellectual property

288、 and contract rights;foreign currency exchange rate fluctuations or requirements to transact in specific currencies;limitations on the repatriation of funds and foreign currency exchange restrictions due to current or new U.S.and international regulations;and18Table of Contentsimport or other busine

289、ss licensing requirements.Moreover,many of the foregoing risks are particularly acute in developing markets,which are important to our long-term growth prospects.An inability toeffectively manage the risks associated with our international operations could adversely affect our business and financial

290、 results.Our reliance on key business partners may adversely affect our business and operations.The growth of our business relies on the ability of our licensee partners to implement our growth platforms and product innovations.Further,the degree towhich we are able to enter into,maintain,develop,ne

291、gotiate,and enforce appropriate terms and conditions of commercial and other agreements,as well as theperformance of our business partners under such agreements,are critical to our business.Our international licensees may face capital constraints or otherfactors,including legal constraints,that may

292、limit the speed at which they are able to expand and develop in a certain market.Our Channel Developmentbusiness is heavily reliant on Nestl,which has the global right to sell and distribute our packaged goods and foodservice products to retailers and operators,with few exceptions.If Nestl fails to

293、perform its distribution and marketing commitments under our agreements and/or fails to support,protect,and grow ourbrand in Channel Development,our Channel Development business could be adversely impacted for a period of time,present long-term challenges to ourbrand,limit our ability to grow our Ch

294、annel Development business,and have a material adverse impact on our business and financial results.Our retaillicensed operations are concentrated in a relatively small number of large licensees.If they are not able to access sufficient capital or are otherwise unable orunwilling to successfully ope

295、rate and grow their businesses,it could have a material adverse effect on our results in the applicable markets.Risks Related to Supply Chain Increases in the cost of high-quality arabica coffee beans or other commodities or decreases in the availability of high-quality arabica coffee beans or other

296、commodities could have an adverse impact on our business operations and financial results.The availability and prices of coffee beans and other commodities are subject to significant volatility.We purchase,roast,and sell high-quality whole beanarabica coffee beans and related coffee products.The hig

297、h-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,among other factors,the supply and demand at the time of purchase,and the amount of the premium can varysignificantly.Increases in the“C”coffee commodity price

298、 increase the price of high-quality arabica coffee and impact our ability to enter into fixed-pricepurchase commitments.We frequently enter supply contracts whereby the quality,quantity,delivery period,and other negotiated terms are agreed upon,but thedate,and therefore price,at which the base“C”cof

299、fee 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 throughout the coffee production chain,natural disasters,crop d

300、isease and pests,general increases in farm input costs and costs of production,inventory levels,political and economic conditions,and the actions of certain organizations and associations that have historically attempted to influence pricesof green coffee through agreements establishing export quota

301、s or by restricting coffee supplies.Climate change may further exacerbate many of these factors.For example,extreme weather conditions such as drought or frost in Brazil have impacted coffee prices in the past,and in the likely event that such weatherconditions were to reoccur,become more frequent,a

302、nd/or increase in severity in the future,they may have similar or worse consequences on coffee pricevolatility.Speculative trading in coffee commodities can also influence coffee prices.Because of the significance of coffee beans to our operations,combinedwith our ability to only partially mitigate

303、future price risk through purchasing practices and hedging activities,increases in the cost of high-quality arabicacoffee beans could have a material adverse impact on our profitability.In addition,if we are not able to purchase sufficient quantities of green coffee due to anyof the above factors or

304、 due to a worldwide or regional shortage,we may not be able to fulfill the demand for our coffee,which could have a material adverseimpact on our business operations and financial performance.We also purchase significant amounts of dairy products,particularly fluid milk,and to a lesser degree,plant-

305、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 non-foo

306、d and beverage inputs,such as the components thatcomprise our packaging materials,are important to our operations,as is the processing of these inputs.Increases in the cost of dairy products and othercommodities,or lack of availability,whether due to supply shortages,delays or interruptions in proce

307、ssing,or otherwise,especially in international markets,could have a material adverse impact on our profitability.Similarly,increases in the cost of,or lack of availability of,whether due to supply shortages,ordelays or interruptions in the processing of,plant-based alternatives could have a material

308、 adverse impact on our profitability.19Table of ContentsOur supply chain may be unable to fully support current and future business needs.Even in the absence of acute disruptions or interruptions,our supply chain may be unable to fully meet current or future business needs.There can be noassurance t

309、hat our suppliers will be able to accommodate our anticipated growth or continue to supply current quantities at preferential prices or at all.Aninability of our suppliers to provide products in a timely or cost-effective manner could impair our growth and have an adverse effect on our business,fina

310、ncialcondition,results of operations,and prospects.If we are unable to accurately forecast sales levels in each market or store and obtain sufficient ingredients orproduce a sufficient supply to meet demand,we may incur higher expedited shipping costs and may temporarily run out of stock of certain

311、products,whichcould negatively impact the enthusiasm of our customers and store partners.We have been,and may in the future be,unable to fully address consumersdemand for our products,particularly in the case of new offerings for which demand is higher than projected.Conversely,if demand does not me

312、et ourexpectations,we have incurred,and could continue to incur,increased inventory write-offs.Finally,if we are unable to scale and improve our forecasting,planning,production,and logistics management,we could frustrate our customers,lose sales,or diminish our brand reputation.Interruption of our s

313、upply chain and our reliance on suppliers could affect our ability to produce or deliver our products and could negatively impact ourbusiness and profitability.Any material interruption in our supply chain(such as material disruption of roasted coffee supply),whether due to the casualty loss of any

314、of our roastingplants,interruptions in service by our third-party logistic service providers or common carriers that ship goods within our distribution channels,traderestrictions(such as increased tariffs or quotas,embargoes,or customs restrictions),pandemics,social or labor unrest,labor shortages,n

315、atural disasters,orpolitical disputes and military conflicts that cause a material disruption in our supply chain could have a negative material impact on our business and ourprofitability.Additionally,our food,beverage,and other products are sourced from a wide variety of domestic and international

316、 business partners in our supplychain operations and,in certain cases,are produced or sourced by our licensees directly.We rely on these suppliers to provide high-quality products and tocomply with applicable laws.Our ability to find qualified suppliers who meet our standards and supply products in

317、a timely and efficient manner is asignificant challenge as we increase our fresh and prepared food offerings,especially with respect to goods sourced from outside the U.S.and from countries orregions with diminished infrastructure,developing or failing economies,or which are experiencing political i

318、nstability,labor discord,disruption or shortages,or social unrest.For certain products,we may rely on one or very few suppliers.A suppliers failure to meet our standards,provide products in a timely andefficient manner,or comply with applicable laws is beyond our control.These issues could have a ma

319、terial negative impact on our business and profitability.Risks Related to Macroeconomic Conditions Our financial condition and results of operations are subject to,and may be adversely affected by,a number of macroeconomic and other factors,many ofwhich are largely outside our control.Our operating

320、results have been,and will continue to be,subject to a number of macroeconomic and other factors,many of which are largely outside ourcontrol.Any one or more of the factors listed below or described elsewhere in this risk factors section could have a material adverse impact on our business,financial

321、 condition,or results of operations:increases in real estate costs in certain domestic and international markets;disruptions to our supply chain;changes in climate,including changes to the frequency or severity of extreme weather events,that impact the price and availability or cost of goodsand serv

322、ices,energy,and other materials throughout our supply chain;changes in governmental rules and approaches to taxation;adverse outcomes of litigation;inflationary pressures and changes in prevailing interest rates;severe weather or other natural or man-made disasters affecting a large market or severa

323、l closely located markets that may temporarily or for extendedperiods of time affect our retail business in such markets;government shutdowns or the risk of government shutdowns,as well as the impact or expected impact of elections,both in the U.S.and in othermarkets around the world;especially in o

324、ur 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,increasing anti-20Table of ContentsAmerican sentiment in certain markets,or hostilities,social unrest,o

325、r health pandemics that lead to avoidance of public places or restrictions onpublic gatherings such as in our stores;andfluctuations in foreign currency exchange rates.Unfavorable economic conditions could also adversely affect our suppliers and licensees,who in turn could experience cash flow probl

326、ems,more costly orunavailable financing,credit defaults,and other financial hardships.This could lead 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.Further,the insolvency of any of our

327、 licensees could result in disruptedoperations or our exit from a particular market,and negatively impact our reputation.Economic conditions in the U.S.and international markets have adversely affected,and could continue to adversely affect,our business and financialresults.As a retailer that is dep

328、endent upon consumer discretionary spending,our results of operations are sensitive to changes in or uncertainty about macroeconomicconditions.A continued economic downturn or recession,or slowing or stalled recovery therefrom,may have a material adverse effect on our business,financial condition,or

329、 results of operations.Our customers may have less money for discretionary purchases and may stop or reduce their purchases of ourproducts or switch to our or our competitors lower-priced products as a result of various factors,including job loss,inflation,changes in prevailing interestrates,higher

330、taxes,reduced access to credit,changes in federal economic policy,a global health pandemic,international trade disputes,or geopoliticalinstability.For example,reductions and continuing volatility in China may be caused by,among other things:changes in consumer spending behaviors,including those caus

331、ed by a decrease in consumer confidence in general macroeconomic conditions,a decrease in consumer discretionary spending,increasingcompetition in the market,lower-priced competitor product offerings,negative economic impacts related to the rising geopolitical tensions between China andTaiwan,econom

332、ic policies or sanctions,heightened data and cybersecurity risks associated with conduct of business in China,and food-safety related matters.We may also experience a reduction or increased volatility in demand for our products in connection with a global health pandemic.Decreases in customertraffic

333、 and/or average value per transaction without a corresponding decrease in costs would put downward pressure on margins and could have a materialnegative impact on our financial results.There is also a risk that if negative economic conditions or uncertainty persist for a long period of time or worsen,consumers may make long-lasting changes to their discretionary purchasing behavior,including less