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1、Starbucks Fiscal 2024 Annual Report 2025 STARBUCKS CORPORATIONUNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington,DC 20549_Form10-K_?ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the Fiscal Year EndedSeptember29,2024or?TRANSITION REPORT PURSUANT TO SE

2、CTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934For the transition period from to .Commission File Number:000-20322_Starbucks Corporation(Exact Name of Registrant as Specified in its Charter)_Washington91-1325671(State of Incorporation)(IRS Employer ID)_2401 Utah Avenue South,Seattle,Washingt

3、on98134(206)447-1575(Address of principal executive office,zip code,telephone number)Securities Registered Pursuant to Section12(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 Reg

4、istered Pursuant to Section12(g)of the Act:None_Indicate by check mark if the registrant is a well-known seasoned issuer,as defined in Rule405 of the Securities Act.Yes?No?Indicate by check mark if the registrant is not required to file reports pursuant to Section13 or Section15(d)of the Act.Yes?No?

5、Indicate by check mark whether the registrant:(1)has filed all reports required to be filed by Section13 or 15(d)of the Securities ExchangeActof1934 during the preceding 12months(or for such shorter period that the registrant was required to file such reports),and(2)has been subject to such filing r

6、equirements for the past 90days.Yes?No?Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule405 of RegulationS-T(232.405 of this chapter)during the preceding 12months(or for such shorter period that the regist

7、rant was required to submit such files).Yes?No?Indicate by check mark whether the registrant is a large accelerated filer,an accelerated filer,a non-accelerated filer,a smaller reporting company,or an emerging growth company.See the definitions of“large accelerated filer,”“accelerated filer,”“smalle

8、r reporting company”and“emerging growth company”in Rule12b-2 of the ExchangeAct.Large accelerated filer?Accelerated filer?Non-accelerated filer?Smaller reporting company?Emerging growth company?If an emerging growth company,indicate by check mark if the registrant has elected not to use the extended

9、 transition period for complying with any new or revised financial accounting standards provided pursuant to Section13(a)of the ExchangeAct.?Indicate by check mark whether the registrant has filed a report on and attestation to its managements assessment of the effectiveness of its internal control

10、over financial reporting under Section404(b)of the Sarbanes-Oxley Act(15 U.S.C.7262(b)by the registered public accounting firm that prepared or issued its audit report.?If securities are registered pursuant to Section12(b)of the Act,indicate by check mark whether the financial statements of the regi

11、strant included in the filing reflect 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 by any of the registrants executive of

12、ficers during the relevant recovery period pursuant to 240.10D-1(b).?Indicate by check mark whether the registrant is a shell company(as defined in Rule12b-2 of the Act).Yes?No?The aggregate market value of common stock held by non-affiliates of the registrant as of the last businessday of the regis

13、trants most recently completed second fiscal quarter,based upon the closing sale price of the registrants common stock on March31,2024 as reported on the Nasdaq Global Select Market was$103.4billion.As of November13,2024,there were1,133.8million shares of the registrants Common Stock outstanding.DOC

14、UMENTS INCORPORATED BY REFERENCEPortions of the registrants definitive Proxy Statement for the registrants Annual Meeting of Shareholders to be held on March12,2025,have been incorporated by reference into PartIII of this Annual Report on Form10-K where indicated.Except as expressly incorporated by

15、reference,the registrants Proxy Statement shall not be deemed to be part of this report.STARBUCKS CORPORATIONForm10-K For the Fiscal Year Ended September29,2024TABLE OF CONTENTSPART IItem 1Business3Item 1ARisk Factors11Item 1BUnresolved Staff Comments31Item 1CCybersecurity31Item 2Properties32Item 3L

16、egal Proceedings32Item 4Mine Safety Disclosures32PART IIItem 5Market for the Registrants Common Equity,Related Shareholder Matters,and Issuer Purchases of Equity Securities33Item 6Reserved35Item 7Managements Discussion and Analysis of Financial Condition and Results of Operations35Item 7AQuantitativ

17、e and Qualitative Disclosures About Market Risk48Item 8Financial Statements and Supplementary Data49Index for Notes to Consolidated Financial Statements54Report of Independent Registered Public Accounting Firm90Item 9Changes in and Disagreements with Accountants on Accounting and Financial Disclosur

18、e92Item 9AControls and Procedures92Item 9BOther Information94Item 9CDisclosure Regarding Foreign Jurisdictions that Prevent Inspections94PART IIIItem 10Directors,Executive Officers,and Corporate Governance95Item 11Executive Compensation95Item 12Security Ownership of Certain Beneficial Owners and Man

19、agement and Related Shareholder Matters95Item 13Certain Relationships and Related Transactions and Director Independence95Item 14Principal Accountant Fees and Services95PART IVItem 15Exhibits and Financial Statement Schedules96Item 16Form 10-K Summary102SIGNATURES1031CAUTIONARY NOTEREGARDING FORWARD

20、-LOOKING STATEMENTSThis Annual Report on Form10-K includes“forward-looking”statements within the meaning of the Private Securities Litigation Reform Actof1995 regarding future events and the future results of Starbucks Corporation(together with its subsidiaries)that are based on our current expectat

21、ions,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 and assumptions of our management.Forward-looking statements can be identified by the fact that they do not relate strictly to histor

22、ical or current facts.They often include words such as“believes,”“expects,”“anticipates,”“estimates,”“intends,”“plans,”“seeks,”or words of similar meaning,or future or conditional verbs,such as“will,”“should,”“could,”“may,”“aims,”“intends,”or“projects,”and similar expressions intended to identify fo

23、rward-looking statements,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 historical experienc

24、e or from our current expectations or projections.Our forward-looking statements,and the risks and uncertainties related thereto,include,but are not limited to,those described under the“Risk Factors”and“Managements Discussion and Analysis of Financial Condition and Results of Operations”sections and

25、 in other reports 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 publicity campaigns),governmental actors(such as retaliator

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

27、ustomer experience initiatives 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 consumer preference

28、s,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 providers to f

29、ulfill 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 stores;our depe

30、ndence 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 changing condition

31、s in our markets,local factors affecting store openings,protectionist trade or foreign investment policies,economic or trade sanctions,compliance with local laws and other regulations,and local labor policies and conditions,including labor strikes and work stoppages;higher costs,lower quality,or una

32、vailability 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 needs and our ab

33、ility to scale and improve our forecasting,planning,production,and logistics management;2 a worsening in the terms and conditions upon which we engage with our manufacturers and source suppliers,whether resulting from broader local or global conditions or dynamics specific to our relationships with

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

35、tional 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 impacts of

36、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 new en

37、trants,consolidations by competitors,and other competitive activities,such as pricing actions(including price reductions,promotions,discounting,couponing,or free goods),marketing,category expansion,product introductions,or entry or expansion in our geographic markets;potential impacts of climate cha

38、nge;evolving corporate governance and public disclosure regulations and expectations;the potential impact of activist shareholder actions or tactics;failure to comply with applicable laws and changing legal and regulatory requirements;the impact or likelihood of significant legal disputes and procee

39、dings 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 of our third-party business partners or service providers,or failure to comply with data protection laws;and our

40、 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 economic environment.A forwar

41、d-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 no obligation to upda

42、te or alter any forward-looking statements,whether as a result of new information,future events,or otherwise.3PARTIItem1.BusinessGeneralIn this Annual Report on Form10-K(“10-K”or“Report”)for the fiscal year ended September29,2024(“fiscal 2024”),Starbucks Corporation(together with its subsidiaries)is

43、 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 Corporations common stock trades on the Nasdaq Global Select Market(“Nasdaq”)under the symbol“SBUX.”We pu

44、rchase and roast high-quality coffees that we sell,along with handcrafted coffee,tea,and other beverages and a variety of high-quality food items through company-operated stores.We also sell a variety of coffee and tea products and license our trademarks through other channels,such as licensed store

45、s as well as grocery and foodservice through our Global Coffee Alliance with Nestl S.A.(“Nestl”).In addition to our flagship Starbucks Coffeebrand,we sell goods and services under the following brands:Teavana,Ethos,and Starbucks Reserve.Our primary objective is to maintain Starbucks standing as one

46、of the most recognized and respected brands in the world.We believe the continuous investments in our brand and operations will deliver long-term targeted revenue and income growth.This includes expansion of our global store base,adding stores in both existing,developed markets such as the U.S.and i

47、n higher growth markets,as well as optimizing the mix of company-operated and licensed stores around the world.In addition,by leveraging experiences gained through our stores and elsewhere,we continue to drive beverage,equipment,process,and technology innovation,including in our industry-leading dig

48、ital platform.We strive to regularly offer consumers new,innovative coffee and other products in a variety of forms,across new categories,diverse channels,and alternative store formats.Starbucks has always been a different kind of companyone deep with purpose,where we work together to create a posit

49、ive impact in the world.With coffee at our core,we pursue ambitious goals for our partners(employees),our communities,and our planet,which we believe also contributes to the long-term sustainability of creating a thriving business powered by thriving people for a thriving planet and communities.Our

50、work to uplift one another extends well beyond our partners to the communities where we do business around the world.We are committed to responsible and ethical sourcing led by Coffee and Farmer Equity Practices(“C.A.F.E.Practices”),the Companys third-party verification program and the cornerstone o

51、f our approach to ethical sourcing of coffee 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-beingthe mental,physical,and financial healthof every partner through our practices,policies,and bene

52、fits.This work is grounded in the belief that we are at our best when we create inclusive,supportive,and welcoming environments,where we uplift one another with dignity,respect,and kindness.And we are hard at work uplifting our communities and building environments in our stores that are welcoming a

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

54、 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 broad spectrum of backgrounds and cultures.Working under these principles,ou

55、r Partner Resources Organization is tasked with managing employment-related matters,including recruiting and hiring,onboarding and training,compensation planning,performance management,and professional development.Our Board of Directors(the“Board”)and Board committees provide oversight on certain hu

56、man capital matters,including our Inclusion and Diversity initiatives.As noted in its charter,our Compensation and Management Development Committee is responsible for periodically reviewing Starbucks partner resource programs and initiatives,including healthcare and other benefits,as well as our man

57、agement 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 legal officer,to monitor and mitigate current and emerging labor and human capital managem

58、ent risks.Our Environmental,Partner,and 4Community Impact Committee annually reviews and assesses the effectiveness of the Companys environmental and social strategies,policies,practices,goals,programs,disclosure,and risks,including review of the Companys annual global climate and social impact repo

59、rt.These reports and recommendations to the Board and its committees are part of the broader framework that guides how Starbucks should attract,retain,and develop a skilled workforce that aligns with our values and strategies.We regularly conduct anonymous surveys to seek feedback from our partners

60、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 reviewed by senior leadership,who analyze

61、 areas of progress or deterioration and prioritize actions and activities in response to this feedback to drive meaningful improvements in partner engagement.Our management and cross-functional teams also work closely to evaluate human capital management issues such as partner retention,workplace sa

62、fety,harassment,and bullying,as well as to implement measures to mitigate these 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,individually,and together.Core to this is

63、 taking steps to ensure that Starbucks is an inclusive,diverse,equitable,and accessible companya place where all are welcome and where our partners know they belong.Under the leadership of our senior vice president of Talent and Inclusion and our executive leadership team,we remain committed to acco

64、untability at every level of the Company.We prioritize transparency with our partners,Inclusion and Diversity Executive Council,Partner Networks,Inclusion and Diversity Business Council,community leaders,customers,and stakeholders.At Starbucks,we are committed to creating environments where everyone

65、 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 substantial progress in the representation o

66、f 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 foster inclusive leadership;we established and expanded our mentorship program to make va

67、luable 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 partners represent more than 51.

68、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 pool of candidates and talent by prioritizing inclusivity in our recruitment practices,i

69、n 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 business environment and labor market.We have consistently made enhancement

70、s in wages in order to attract talent to support our growth strategy and to elevate the customer experience.To foster a stronger sense of ownership and align the interests of partners with shareholders,restricted stock units are provided to eligible non-executive partners under our broad-based stock

71、 incentive programs.Furthermore,we offer comprehensive,locally relevant and innovative benefits to all eligible 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 offered to partners working

72、an average of 20hours or more each week.5 100%upfront tuition coverage through the Starbucks College Achievement Plan for partners to earn a first-time bachelors degree online at Arizona State University is offered to partners working an average of 20hours or more each week.Our Future Roast 401(k)sa

73、vings plan helps partners save for their financial goal through convenient payroll deductions.Partners can contribute pre-tax or Roth after-tax dollars,and Starbucks matches 5%of eligible contributions with immediate vesting in those matching contributions.100%paid parental leave is available to new

74、 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 onhours worked and use that time for themselves or family members in need of

75、 care.We view mental health as a fundamental part of our humanity and provide a comprehensive suite of related programs and benefits.These include a free subscription to Headspace,an online application that enables guided meditation,and 20 free mental health therapy or coaching sessions annually wit

76、h 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 14thMonth Pay initiative,giving retail partners a

77、n additional months 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 and shift supervisors,and comprehensive health insurance coverage for parents of partners.Role-based SupportTo help our partners succeed

78、 in their roles,we emphasize continuous training and development opportunities.These include,but are not limited to,safety and security protocols,updates on new products and service offerings,and deployment of technologies.Training provided through our Pour Over sessions,which are a series of inspir

79、ing talks with thought leaders to help partners understand how to bring theStarbucks Experienceto life,include a wide variety of topics such as achievable goal setting,giving and receiving constructive feedback,and effective engagement with customers and communities.To help further promote an inclus

80、ive culture and to better serve our customers,we encourage U.S.-based partners to enroll in theTo Be Welcomingcourses we created in partnership with Arizona State University to address different forms of bias and discrimination.Pay EquityTo be an employer of choice and maintain the strength of our w

81、orkforce,we consistently assess the current business environment and labor market to refine our compensation and benefits programs and other resources available to our partners.Starbucks is committed to pay equity.Weve achieved and maintained racial and gender pay equity for partners in the U.S.who

82、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 markets globally.Further,we have formulated pay-equity principles,which provide equal footing,transparency,and accountability as best

83、practices that help address known,systemic barriers to global pay equity.As of September29,2024,Starbucks employed approximately 361,000people worldwide.In the U.S.,Starbucks employed approximately 211,000people,with approximately 201,000 in company-operated stores and the remainder in corporate sup

84、port,store development,roasting,manufacturing,warehousing,and distribution operations.Approximately 150,000employees were employed outside of the U.S.,with approximately 144,000 in company-operated stores and the remainder in regional support operations.Approximately 5%of Starbucks partners in U.S.c

85、ompany-operated stores are represented by unions.We believe our efforts in managing our workforce have been effective,evidenced by low turnover,a strong culture,and active employee participation.6Information about our Executive OfficersNameAgePositionBrian Niccol50chairman and chief executive office

86、rRachel Ruggeri55executive vice president,chief financial officerBrady Brewer51chief executive officer,Starbucks InternationalSara Kelly45executive vice president,chief partner officerBrad Lerman68executive vice president,chief legal officerBrian Niccoljoined Starbucks as its chairman and chief exec

87、utive officer in September2024.Mr.Niccol spent more than 25years 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 of growth and transformation,having served as a director and

88、 as its chief executive officer from 2018 to 2024 and as its chairman,from 2020 to 2024.Before joining 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 chief marketing and innovation offic

89、er(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.Rachel Ruggerijoined Starbucks in 2001 as a member of the accounting team

90、and was named executive vice president and chief financial officer in 2021.In August2024,she served as interim chief executive officer during Starbucks recent chief executive officer transition.In her role as chief financial officer,Ms.Ruggeri is responsible for the global finance function for Starb

91、ucks,which includes developing and executing the financial strategies that enable the long-term growth of the Company.Prior to her promotion in 2021,she served as senior vice president of Americas with responsibility for the retail portfolio across the segment,including company-operated and licensed

92、 stores from 2020 to 2021.From 2016 to 2020,she held various leadership roles in finance both internal and external to Starbucks,including Chief Financial Officer of Continental Mills from 2018 to 2020 and prior to that she was senior vice president of Finance at Starbucks in support of the Americas

93、 and Global Retail from 2016 to 2018.She also served as vice president of Finance from 2010 to 2016 supporting Corporate Financial Planning&Analysis and the U.S.Retail business.Ms.Ruggeri currently serves on the Board of Directors of Stryker Corporation,a NYSE-listed medical technologies company.Bra

94、dy Brewer joined Starbucks in 2001 and has served as chief executive officer,Starbucks International since April2024,where he is responsible for the teams across Asia Pacific,Europe,Middle East,Africa,Japan,Latin America,and the Caribbean,as well as Global Channel Development and the Companys intern

95、ational licensed partners.From February2020 through March2024,he served as Starbucks executive vice president and chief marketing officer,leading the Starbucks brand,marketing,food and beverage portfolio,digital customer experience innovation,R&D/Engineering,creative and brand management,consumer in

96、sights,data analytics,and sustainability.His prior roles at Starbucks include senior vice president of Digital Customer Experience for Starbucks(2019 through February2020),where he focused on delivering new innovations that made the Starbucks Experience continually more effortless and delightful for

97、 customers;chief operating officer for Starbucks Japan(2016 to 2019),where he led store operations as well as brand and marketing strategy;and senior vice president,Marketing and Product for the Companys China and Asia Pacific region(2014 to 2016).Sara Kellyjoined Starbucks in 2001 and has served as

98、 executive vice president and chief partner officer since 2022,where she is responsible for helping partners realize their career potential and building global partner capability to enable growth and deliver on the Companys strategic plan.Prior to her current role,Ms.Kelly was senior vice president,

99、Talent&Partner Experience from 2021 to 2022,where she was responsible for advancing Starbucks talent and organizational leadership agenda and was focused on amplifying the strategic work being led by the talent acquisition,talent management,partner experience,learning and development,and organizatio

100、n and leadership effectiveness teams.From 2014 to 2021,Ms.Kelly served as vice president,Partner Resources,supporting partners in our global markets.Brad Lermanjoined Starbucks in April2023 as executive vice president and general counsel and has served as executive vice president and chief legal off

101、icer since April2024.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 president,general counsel and corporate secretar

102、y for the Federal National Mortgage Association(Fannie Mae)from 2012 to 2014.Mr.Lerman has also served as chief litigation counsel for Pfizer and has worked in private practice as a partner at Winston&Strawn LLP in Chicago.He also served as an Assistant UnitedStates Attorney in the Northern District

103、 of Illinois.Mr.Lerman currently serves on the Board of Directors of McKesson Corporation,a NYSE-listed health care,pharmaceutical,and medical supply company.7Segment Financial InformationSegment information is prepared on the same basis that our ceo,who is our Chief Operating Decision Maker,manages

104、 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 East,Africa,Latin America,and the Caribbean;an

105、d 3)Channel Development.Unallocated corporate expenses are reported within Corporate and Other.Revenues from our reportable operating segments as a percentage of total net revenues for fiscal 2024 were as follows:North America(75%),International(20%),and Channel Development(5%).Our North America and

106、 International segments include both company-operated and licensed stores.Our North America segment is our most mature business and has achieved significant scale.Certain markets within our International operations are in various stages of development and may require more extensive support,relative

107、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-drink beverages,such as Frappuccinoand Starbucks Doubleshot,foodservi

108、ce 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-drink businesses operate under collaborativ

109、e relationships with PepsiCo,Inc.,Tingyi-Ashi Beverages Holding Co.,Ltd.,Arla Foods amba,Nestl,and others.Revenue ComponentsWe generate the majority of our revenues through company-operated stores and licensed stores.Company-operated and Licensed Store Summary as of September29,2024:North AmericaAs

110、a%of Total North America StoresInternationalAs a%of Total International StoresTotalAs a%of Total StoresCompany-operated stores11,16161%9,85745%21,01852%Licensed stores7,26339%11,91855%19,18148%Total18,424100%21,775100%40,199100%The mix of company-operated versus licensed stores in a given market gen

111、erally varies based on several factors,including our ability to access desirable local retail space,the complexity,profitability,and expected ultimate size of the market for Starbucks,and our ability to leverage the support infrastructure within a geographic region.Company-operated StoresRevenue fro

112、m company-operated stores accounted for 82%of total net revenues during fiscal 2024.Our retail objective is to be the leading retailer and brand of coffee and tea in each of our target markets by selling the finest quality coffee,tea,and related products,as well as complementary food offerings,and b

113、y providing each customer with a uniqueStarbucks Experience.TheStarbucks Experienceis built upon superior customer service,convenience,and a seamless digital experience as well as safe,clean,and well-maintained stores that reflect the personalities of the communities in which they operate,thereby bu

114、ilding a high degree of customer loyalty.Our strategy for expanding our global retail business is to increase our category share in a disciplined manner,by selectively opening additional stores in new and existing markets,as well as increasing sales in existing stores,to support our long-term strate

115、gic objective to maintain Starbucks standing as one of the most recognized and respected brands in the world.Store growth in specific existing markets will vary due to many factors,including expected financial returns,the maturity of the market,economic conditions,consumer behavior,and the local bus

116、iness environment.8Company-operated store data for the fiscal year-ended September29,2024:Stores Open as of Oct 1,2023OpenedClosedTransfersNetStores Open as of Sep 29,2024North America:U.S.9,645611(96)(2)51310,158Canada97737(17)20997Siren Retail66Total North America10,628648(113)(2)53311,161Internat

117、ional:China6,804855(65)7907,594Japan1,73390(14)761,809U.K.35532(9)23378All Other674471Siren Retail55Total International8,964981(88)8939,857Total company-operated19,5921,629(201)(2)1,42621,018Starbucks company-operated stores are typically located in high-traffic,high-visibility locations.Our ability

118、 to vary the size and format of our stores allows us to locate them in or near a variety of settings,including downtown and suburban retail centers,office buildings,university campuses,and rural and off-highway locations.We are continuing the expansion of our stores,particularly drive-thru formats t

119、hat provide a higher degree of access and convenience,as well as other store formats that cater to a variety of customer needs.Retail sales mix by product type for company-operated stores:Fiscal Year EndedSep 29,2024Oct 1,2023Oct 2,2022Beverages74%74%74%Food23%22%22%Other(1)3%4%4%Total100%100%100%(1

120、)“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 program(the“Starbucks Card”)is designed to provide customers with a convenient payment method,support

121、gifting,and increase the frequency of store visits by cardholders,in part through the related StarbucksRewards loyalty program where available,as discussed below.Starbucks Cards are issued to customers when they initially load them with an account balance.They can be obtained in our company-operated

122、 and most licensed stores in North America,China,Japan,and many of our other markets in our International segment.Starbucks Cards can also be obtained online,via the StarbucksMobile App,and through other U.S.and international retailers.Customers may access their card balances by utilizing their Star

123、bucks Card or the Starbucks Mobile App in participating stores.In nearly all markets,including the U.S.and Canada,customers who register their Starbucks Cards are automatically enrolled in the Starbucks Rewards program.Registered members can receive various benefits depending on factors such as the

124、number of reward points(“Stars”)earned.In addition to using their Starbucks Cards,Starbucks Rewards members can earn Stars by paying with cash,credit or debit cards,or selected mobile wallets at all company-operated stores and a majority of licensed stores in North America.Using the Mobile Order and

125、 Pay functionality of the Starbucks Mobile App,customers can also place orders in advance for pick-up at certain participating locations in several markets.Refer toNote1,Summary of Significant Accounting Policies and Estimates,included in Item8 of PartII of this 10-K,for further discussion of our St

126、arbucks Cards and loyalty program.9Licensed 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 higher operating margin than company-operated stores.Under the licensed model,Starbucks receives a margi

127、n on branded products and supplies sold to the licensed store operator along with a royalty on retail sales.Licensees are responsible for operating costs and capital investments,which more than offset the lower revenues we receive under the licensed store model.In our licensed store operations,we se

128、ek to leverage the expertise of our local partners and share our operating and store development experience.Licensees provide improved,and at times the only,access to desirable retail space.Most licensees are prominent retailers with in-depth market knowledge and access.As part of these arrangements

129、,we sell coffee,tea,food,and related products to licensees for resale to customers and receive royalties and license fees from the licensees.We also sell certain equipment,such as coffee brewers and espresso machines,to our licensees for use in their operations.Licensee employees working in licensed

130、 retail locations are required to follow our detailed store operating procedures and attend training classes similar to those given to employees in company-operated stores.In a limited number of international markets,we also use traditional franchising and include these stores in the results of oper

131、ations from our other licensed stores.Licensed store data for the fiscal year-ended September29,2024:Stores Open as of Oct 1,2023OpenedClosedTransfersNetStores Open as of Sep 29,2024North America:U.S.6,701232(158)2766,777Canada48126(21)5486Total North America7,182258(179)2817,263International:Korea1

132、,870144(34)1101,980Latin America1,649139(83)561,705U.K.91187(22)65976Turkey6764646722Taiwan56324(16)8571Indonesia58130(8)22603Thailand47440(1)39513Philippines44733(1)32479All Other4,093426(150)2764,369Total International11,264969(315)65411,918Total licensed18,4461,227(494)273519,181Other RevenuesOth

133、er revenues primarily are recorded in our Channel Development segment and include sales of packaged coffee,tea,and ready-to-drink beverages to customers outside of our company-operated and licensed stores,as well as royalties received from Nestl under the Global Coffee Alliance and other collaborati

134、ve partnerships.Product SupplyStarbucks is committed to selling the finest whole bean coffees and coffee beverages.To help ensure compliance with our rigorous coffee standards,we generally control substantially all coffee purchasing,roasting,and packaging,and the global distribution of coffee used i

135、n our operations.Nestl controls distribution of Starbucks packaged coffee products outside of Starbucks stores through the Global Coffee Alliance,and in some cases,also roasts and packages these products.We purchase green coffee beans from multiple coffee-producing regions around the world and custo

136、m roast them to our exacting standards for our many blends and single-origin coffees.The price of coffee is subject to significant volatility.Although most coffee trades in the commodity market,high-altitude arabicacoffee of the quality sought by Starbucks tends to trade on a negotiated basis at a p

137、remium above the“C”coffee commodity price.Both the premium and the commodity price depend upon the supply and demand at the time of purchase.10Supply and price can be affected by multiple factors in the producing countries,including weather,water supply quality and availability throughout the coffee

138、 production chain,natural disasters,crop disease and pests,general increases in farm inputs and costs of production,inventory levels,and political and economic conditions.Climate change may further exacerbate many of these factors.Price is also impacted by trading activities in thearabicacoffee futu

139、res market,including hedge funds and commodity index funds.In addition,green coffee prices have been affected in the past,and may be affected in the future,by the actions of certain organizations and associations that have historically attempted to influence prices of green coffee through agreements

140、 establishing export quotas or by restricting coffee supplies.We buy coffee using fixed-price and price-to-be-fixed purchase commitments,depending on market conditions,to secure an adequate supply of quality green coffee.We also utilize forward contracts,futures contracts,and collars to hedge“C”pric

141、e exposure under our price-to-be-fixed green coffee contracts and our long-term forecasted coffee demand where underlying fixed-price and price-to-be-fixed contracts are not yet available.Total purchase commitments,together with existing inventory,are expected to provide an adequate supply of green

142、coffee through fiscal 2025.We depend upon our relationships with coffee producers,outside trading companies,and exporters for our supply of green coffee.We believe,based on the established relationship and historical performance of our suppliers,that the risk of non-delivery on such purchase commitm

143、ents is remote.To help ensure the future supply of high-quality green coffee and to reinforce our leadership role in the coffee industry,Starbucks operates ten farmer support centers,including our China Farmer Support Center located in the Yunnan Province of this high-growth market.Farmer support ce

144、nters are staffed with agronomists and sustainability experts who work with coffee farming communities to promote best practices in coffee production designed to improve both coffee quality and yields as well as agronomy support to address climate change and other impacts.In addition to coffee,we al

145、so purchase significant amounts of dairy,particularly fluid milk,and to a lesser degree,plant-based dairy-free alternative products,such as oat milk and almond milk,to support the needs of our company-operated stores.We believe,based on the established relationship and historical performance of our

146、dairy and plant-based dairy-free suppliers,that the risk of non-delivery of sufficient fluid milk and plant-based dairy-free alternatives to support our stores generally is remote.Products other than whole bean coffees and coffee beverages sold in Starbucks stores include tea and a number of ready-t

147、o-drink beverages that are purchased from several specialty suppliers,usually under long-term supply contracts.Food products,such as pastries,breakfast sandwiches,and lunch items,are purchased from national,regional,and local sources.We also purchase a broad range of paper and plastic products,such

148、as cups and cutlery,from several companies to support the needs of our retail stores as well as our manufacturing and distribution operations.We are also expanding our use of reusable packaging to reduce landfill waste.We believe,based on the established relationship and historical performance of ou

149、r suppliers and manufacturers,that the risk of non-delivery of sufficient amounts of these items generally is remote.CompetitionOur primary competitors for coffee beverage sales are specialty coffee retailers and shops.We believe that our customers choose among specialty coffee retailers and shops p

150、rimarily on the basis of product quality,brand reputation,service,and convenience,as well as price.We continue to experience direct competition from large competitors in the quick-service restaurant sector and the ready-to-drink coffee beverage market,in addition to both well-established and start-u

151、p companies in many international markets.We also compete with restaurants and other specialty retailers for prime retail locations and qualified personnel to operate both new and existing stores.Our coffee and tea products sold through our Channel Development segment compete directly against specia

152、lty coffees and teas sold through grocery stores,warehouse clubs,specialty retailers,convenience stores,and foodservice accounts and also compete indirectly against all other coffees and teas on the market.Trademarks,Copyrights,Patents,and Domain NamesStarbucks owns and has applied to register numer

153、ous trademarks and service marks in the U.S.and in other countries throughout the world.Some of our trademarks,including Starbucks,the Starbucks logo,Starbucks Reserve,and Frappuccino,are of material importance.The duration of trademark registrations varies from country to country.However,trademarks

154、 are generally valid and may be renewed indefinitely as long as they are in use and/or their registrations are properly maintained.11We own numerous copyrights for items such as product packaging,promotional materials,in-store graphics,and training materials.We also hold patents on certain products,

155、systems,and designs,which have an average remaining duration of approximately thirteenyears.In addition,Starbucks has registered and maintains numerous Internet domain names,including“S,”“S,”and“S.”Seasonality and Quarterly ResultsOur business is subject to moderate seasonal fluctuations,of which ou

156、r second fiscal quarter typically experiences lower revenues and operating income.Additionally,as Starbucks Cards are issued to,and loaded by,customers during the holiday season,we tend to have higher cash flows from operations during the first quarter of the fiscal year.However,since revenues from

157、Starbucks Cards are recognized upon redemption and not when cash is loaded onto the Starbucks Cards,the impact of seasonal fluctuations on the consolidated statements of earnings is much less pronounced.As a result of moderate seasonal fluctuations,results for any quarter are not necessarily indicat

158、ive of the results that may be achieved for the full fiscal year.Government RegulationAs a company with global operations,we are subject to the laws and regulations of the UnitedStates and the multiple foreign jurisdictions in which we operate as well as the rules,reporting obligations,and interpret

159、ations of all such requirements and obligations by various governing bodies,which may differ among jurisdictions.In addition,changes to such laws,regulations,rules,reporting obligations,and related compliance obligations could result in significant costs but are not expected to have a material effec

160、t on our capital expenditures,results of operations,and competitive position as compared to prior periods.Available InformationStarbucks Annual Report on Form10-K reports,along with all other reports and amendments filed with or furnished to the Securities and Exchange Commission(the“SEC”),are publi

161、cly available free of charge on the Investor Relations section of our website at as soon as reasonably practicable after these materials are filed with or furnished to the SEC.In addition,the SEC maintains an internet site that contains reports,proxy and information statements,and other information

162、regarding issuers that file electronically with the SEC at www.sec.gov.Our corporate governance policies,code of ethics,and Board committee charters and policies are also posted on the Investor Relations section of our website.We also use the Investor Relations section of our website and our social

163、media channels as tools to disclose important information about the Company and comply with our disclosure obligations under RegulationFair Disclosure.We encourage investors and others to review the information we make public on the Investor Relations section of our website and our social media chan

164、nels,as such information could be deemed material information.The information on our website(or any webpages referenced in this Report)or our social media channels is not part of this or any other report Starbucks files with,or furnishes to,the SEC,and all website addresses in this report are intend

165、ed to be inactive textual references only.Item1A.Risk FactorsYou should carefully consider the risks described below in addition to the other information set forth in this Annual Report on Form10-K,including the Managements Discussion and Analysis of Financial Conditions and Results of Operations se

166、ction,the Quantitative and Qualitative Disclosures About Market Risk section,and the consolidated financial statements and related notes.The risks described below are not the only risks facing the Company.Risks and uncertainties not currently known to us or that we currently deem to be immaterial al

167、so may materially adversely affect our business,financial condition,and operating results.Summary of Risks Associated with Our BusinessOur business is subject to various risks and uncertainties that you should consider before investing in the Company.These risks are described in more detail in this

168、Item1A.These risks include,but are not limited to,the following:Risks Related to Brand Relevance and Brand Execution Our success depends substantially on the value of our brands,and failure to preserve their value could have a negative impact on our financial results.We may not be successful in our

169、marketing strategies,promotional and advertising plans,and pricing strategies.12Risks Related to Our Business We may not be successful in implementing important strategic initiatives or effectively managing growth,which may have an adverse impact on our business and financial results.Our investments

170、 to transform and enhance the customer experience,including through technology,may not generate the expected results.Evolving consumer preferences and tastes,as well as adverse public or medical opinions about the health effects of consuming our products,may adversely affect our business.If our busi

171、ness partners and third-party providers do not satisfactorily fulfill their responsibilities and commitments,it could damage our brand,and our financial results could suffer.Reported incidents involving food-or beverage-borne illnesses,tampering,adulteration,contamination,or mislabeling,whether or n

172、ot accurate,could harm our business.If we are unable to meet our projections for new store openings or efficiently maintain the attractiveness of our existing stores,our operating results could suffer.Risks Related to Operating a Global Business We are highly dependent on the financial performance o

173、f 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 as a global business that could adversely affect our financial performance.Our reliance on key business partners may adversely affe

174、ct our business and operations.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 commodities could have an adverse impact on our business operations and financia

175、l results.Our supply chain may be unable to fully support current and future business needs.Interruption of our supply chain and our reliance on suppliers could affect our ability to produce or deliver our products and could negatively impact our business and profitability.Risks Related to Macroecon

176、omic 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 of which are largely outside our control.Economic conditions in the U.S.and international markets have adversely affected,and could conti

177、nue to adversely affect,our business and financial results.Failure to meet our announced guidance or market expectations for our financial performance will likely adversely affect the market price and increase the volatility of our stock,and fluctuations in the stock market as a whole may also impac

178、t the market price and volatility of our stock.Risks Related to Human Capital The loss of key personnel,difficulties with recruiting and retaining qualified personnel,or ineffectively managing changes in our workforce could adversely impact our business and financial results.Changes in the availabil

179、ity and cost of labor could adversely affect our business.13Risks Related to Competition We face intense competition in each of our channels and markets,which could lead to reduced profitability.Risks Related to Environmental,Social,and Governance Matters Climate change may have an adverse impact on

180、 our business.Our business is subject to evolving corporate governance and public disclosure regulations and expectations,including with respect to environmental,social,and governance matters,that could expose us to numerous risks.Certain activist shareholder actions have caused,and could continue t

181、o cause,us to incur expense,hinder execution of our business strategy,and adversely impact our stock price.Risks Related to Regulation and Litigation Failure to comply with applicable laws and changing legal and regulatory requirements could harm our business and financial results.We have been,and c

182、ould continue to be,party to litigation or other legal proceedings that could adversely affect our business,results,operations,and reputation.Risks Related to Cybersecurity and Data Privacy Failure to maintain satisfactory compliance with certain privacy and data protection laws and regulations may

183、result in substantial negative financial consequences,reputational harm,and civil or criminal penalties.The unauthorized access,use,theft,or destruction of customer or employee data(personal,financial,or other),or of Starbucks proprietary or confidential information that is stored in our information

184、 systems or by third parties on our behalf,could impact our reputation and brand and expose us to potential liability and loss of revenues.We rely heavily on information technology in our operations and growth initiatives,and any material failure,inadequacy,interruption,or security failure of that t

185、echnology could harm our ability to effectively operate and grow our business and could adversely affect our financial results.Risks Related to Intellectual Property Failure to adequately protect our intellectual property or ensure that we are not infringing on the intellectual property of others co

186、uld harm the value of our brand and our business.Risks Related to Brand Relevance and Brand ExecutionOur success depends substantially on the value of our brands,and failure to preserve their value could have a negative impact on our financial results.We believe we have built an excellent reputation

187、 globally for the quality of our products,for delivery of a consistently positive consumer experience,and for our global environmental and social impact programs.The Starbucks brand is recognized throughout most of the world,and we have received high ratings in global brand value studies.To be succe

188、ssful in the future,particularly outside of the U.S.where the Starbucks brand and our other brands are less well-known,we believe we must preserve,grow,and leverage the value of our brands across all sales channels.Brand value is based in part on consumer perceptions on a variety of subjective quali

189、ties.Erosion of trust in our brand value can be caused by isolated or recurring incidents originating both from us or our business partners,or from external events.Such incidents can potentially trigger boycotts of our stores or result in civil or criminal liability,which can have a negative impact

190、on our financial results.Incidents that can erode trust in our brand value include actual or perceived breaches of privacy or violations of domestic or international privacy laws,contaminated food,product recalls,store employees or other food handlers infected with communicable diseases,safety-relat

191、ed incidents,or other potential incidents discussed in this risk factors section.The impact of such incidents may be exacerbated if they receive considerable publicity,including rapidly through social or digital media(including for malicious reasons),or if they result 14in litigation.Negative postin

192、gs or comments on social media or networking websites about Starbucks,even if inaccurate or malicious,have in the past,and could in the future,generate negative publicity about Starbucks across media channels that could damage the value of our brand.It may be difficult to address such negative publi

193、city,including as a result of fictitious media content(such as content produced by generative artificial intelligence or bad actors)across media channels.Additionally,consumer demand for our products and our brand value could diminish significantly if we,our employees,licensees,or other business par

194、tners fail to preserve the quality of our products,act or are perceived to act in an unethical,illegal,racially-biased,unequal,inequitable,or socially irresponsible manner,including with respect to the sourcing,content,or sale of our products,service and treatment of customers at Starbucks stores,tr

195、eatment of employees,including our responses to unionization efforts,or the use of customer data for general or direct marketing or other purposes.Allegations,even if untrue,that we are not respecting internationally recognized human rights,are failing to comply with applicable workplace and labor l

196、aws,or are aligned with positions on social or geopolitical issues could also negatively impact our brand value.Additionally,if we fail to comply with laws and regulations,take controversial positions or actions,fail to deliver a consistently positive consumer experience in each of our markets,inclu

197、ding by failing to invest in the right balance of wages and benefits to attract and retain employees who represent the brand well,or fail to foster an inclusive and diverse environment,our brand value may be diminished.In addition,we cannot ensure that our store partners,licensees,or other business

198、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 environmental and social program goals,consumer trust in our brand may suffer,and this perception could result in negative publicity

199、or litigation.The ongoing relevance of our brand may depend on making sufficient progress toward our environmental and social program goals,each of which requires company-wide coordination and alignment.Increased public focus,including by governmental and nongovernmental organizations,on environment

200、al sustainability matters,including climate change,diminishing energy and water resources,packaging and waste,deforestation,biodiversity loss,greenhouse gas emissions,and land use,may result in increased pressure to set goals and take actions to meet them,which could expose us to market,operational,

201、and execution costs or risks.Statements regarding our environmental and social program goals reflect our current plans and aspirations;our environmental and social program-related policies,practices,and goals are voluntary,challenging,and subject to change at our discretion.Some third parties may ob

202、ject to the scope or nature of our environmental and social program initiatives or goals,or any revisions to these initiatives or goals,which could give rise to negative responses by governmental actors(such as retaliatory legislative treatment),consumers(such as boycotts or negative publicity campa

203、igns),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 strategies.Our continued success depends in part on our ability to adjust our marketing strategies,promotional and advertising p

204、lans,and pricing strategies to respond quickly and effectively to shifting economic and competitive conditions as well as evolving customer preferences.We operate in a complex and costly marketing,promotional,and advertising environment.Competition to attract and retain high-quality marketing partne

205、rs and endorsers has increased.Our decisions to collaborate or to cease collaborating with certain endorsers or marketing partners in light of actions taken or statements made by them could seriously harm our brand image with consumers and,as a result,could have an adverse effect on our sales and fi

206、nancial 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 allocation of our advertising,promotional,and marketing resources across different channels,including digital,allows us to

207、effectively and efficiently reach consumers in ways that are meaningful to them.Additionally,many factors,including operating costs,constraints,or changes,and our current and future competitors pricing and marketing strategies,could significantly affect our pricing strategies(including price reducti

208、ons,promotions,discounts,coupons,or free goods),which may prevent us from competing effectively in certain geographies.For example,historically,in order to partially offset inflation and other increases in the costs of core operating resources,we have gradually increased menu prices.There can be no

209、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 absorbed by our customers without any resulting change to their demand for our products.If the advertising,promotional,and marketing

210、programs or our pricing strategies are not successful or are not as successful as those of our competitors,our sales and market share could decrease.Finally,consumers are focusing more on sustainability and the environmental impacts of Starbucks operations,as well as the alignment of Starbucks actio

211、ns with its stated mission,values,and promises.An inability to meet consumer expectations with respect to these issues could adversely affect our financial results.15Risks Related to Our BusinessWe may not be successful in implementing important strategic initiatives or effectively managing growth,w

212、hich may have an adverse impact on our business and financial results.We may not be able to implement important strategic initiatives in accordance with our expectations or that generate expected returns,which may result in an adverse impact on our business and financial results.These strategic init

213、iatives,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 employer of choice and investing in partners to deliver a superior customer experience;building our leadership position around c

214、offee;driving convenience,brand engagement,and digital relationships through our mobile,loyalty,delivery,and digital capabilities both domestically and internationally;simplifying store administrative tasks to allow store partners to better engage with customers;increasing the scale of the Starbucks

215、 store footprint with disciplined global expansion and continuing to introduce flexible and unique store formats in certain markets;adjusting rapidly to changing customer preferences and behaviors as a result of changing economic conditions and increased global interest rates and inflation;moving to

216、 a more licensed store model in certain markets and a more company-operated model in other markets;creating new occasions in stores across alldayparts with new product offerings,including our growing lunch food and beverage product lineup;continuing the global growth of our Channel Development busin

217、ess through our supply,distribution,and licensing agreements with Nestl and other Channel Development business partners;delivering continued growth in our cold beverage business;working to address the potential effects of climate change and the sustainability of our business;and reducing our operati

218、ng costs,particularly general and administrative expenses.In addition to other factors listed in this risk factors section,factors that may adversely affect the successful implementation of these initiatives,which could have a material adverse impact on our business and financial results,include the

219、 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 lack of desirable real estate locations available for lease at reasonable rates,any of which could keep us from meeting annual store opening t

220、argets in the U.S.and internationally;not successfully scaling our supply chain infrastructure as we continue to expand;not successfully adapting to customer or market factors affecting our supply chain as we work to address sustainability goals and mitigate the impacts of climate change;inability t

221、o 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 changes in macroeconomic conditions,changes in expected project benefits,or other factors;construction cost increases associated with n

222、ew store openings and remodeling of existing stores;the challenges of company-wide coordination and alignment;inability to identify or act on opportunities to deliver anticipated cost savings;16 imposition of additional taxes by jurisdictions,such as on certain types of beverages or based on number

223、of employees;governmental regulations or other health guidelines concerning operations of stores,including due to public health emergencies;deterioration in our credit ratings,which could limit the availability of additional financing and increase the cost of obtaining financing to fund our initiati

224、ves;and geopolitical instability and international conflicts.Effectively managing growth can be challenging,particularly as we continue to expand in international markets where we must balance the need for flexibility and a degree of autonomy for local management against the need for consistency wit

225、h our goals,policies,and standards.If we are not successful in implementing our strategic initiatives,or,in the event we undertake large acquisitions,integrations,and divestitures,we may be required to evaluate whether certain assets,including goodwill and other intangibles,have become impaired.In t

226、he event we record an impairment charge,it could have a material impact on our financial results.Our investments to transform and enhance the customer experience,including through technology,may not generate the expected results.Our long-term business objectives depend on the successful execution of

227、 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.As part of these investments,we continue to focus on improving our service model and strengthening relationships with customer

228、s,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 mobile ordering process.If these customer experience initiatives are not successfully executed or do not generate expected results

229、,or if we do not fully realize the intended benefits of these significant investments,our financial results may suffer.It is also possible that the greater allocation of time and resources to these customer experience initiatives versus other organizational priorities could negatively impact other a

230、reas of our business,or that we will fail to achieve optimal allocation of resources,which could materially harm our business and results of operations.Evolving consumer preferences and tastes,as well as adverse public or medical opinions about the health effects of consuming our products,may advers

231、ely affect our business.Our continued success depends on our ability to attract and retain customers.Our financial results could be adversely affected by a shift in consumer spending away from outside-the-home food and beverages(such as a reduction in discretionary spending);lack of customer accepta

232、nce of new products(including due to price increases necessary to cover the costs of new products or higher input costs),brands(such as the global expansion of the Starbucks brand),and platforms(such as features of our mobile technology,changes in our loyalty rewards programs,and our delivery servic

233、es initiatives);or customers reducing their demand for our current offerings as new products are introduced.In addition,some of our products contain caffeine,dairy products,sugar,and other compounds and allergens,the health effects of which are the subject of public and regulatory scrutiny,including

234、 the suggestion of linkages to a variety of adverse health effects.Particularly in the U.S.,there is increasing consumer awareness of health risks,including obesity,as well as increased consumer litigation based on alleged adverse health impacts of consumption of various food and beverage products.A

235、n unfavorable report on the health effects of caffeine or other compounds present in our products,whether or not accurate,imposition of additional taxes on certain types of food and beverage components,or negative publicity or litigation arising from certain health risks could significantly reduce t

236、he demand for our beverages and food products and materially harm our business and results of operations.Changes in diet(whether due to changes in consumer behavior and eating habits,use of weight-loss drugs,or other factors)could also influence the demand for our offerings and materially harm our b

237、usiness and results of operations.Our financial results have been,and could continue to be,adversely affected by changes in macroeconomic conditions,including those discussed in more detail elsewhere in this risk factors section.Such changes have impacted,and could continue to impact,customer routin

238、es,employer“work-from-home”policies,and consumer behavior,including consumers ability or willingness to spend discretionary income on our products.17If our business partners and third-party providers do not satisfactorily fulfill their responsibilities and commitments,it could damage our brand,and o

239、ur financial results could suffer.Our global business strategy,including our plans for new stores,branded products,and other initiatives,relies significantly on a variety of business partners,including licensees,joint venture partners,third-party manufacturers,distributors,and retailers,particularly

240、 for our entire global Channel Development business.Licensees,retailers,and foodservice operators are often authorized to use our logos and provide branded food,beverage,and other products directly to customers.We believe our customers expect the same quality of service regardless of whether they vi

241、sit a licensed or company-operated store,so we provide training and support to,and monitor the operations of,certain of these licensees and other business partners.However,the product quality and service they deliver may still be diminished by any number of factors beyond our control,including finan

242、cial constraints or solvency issues,adherence to sanitation protocols and guidance,labor shortages,and other factors.We do not have direct control over our business partners and may not have visibility into their practices.We also source our food,beverage,and other products from a wide variety of do

243、mestic and international business partners,and in certain cases,such products are produced or sourced by our licensees directly.We do not monitor the quality of non-Starbucks products served by foodservice operators who are authorized to use our logos and provide branded products as part of their fo

244、odservice businesses.Failures by our licensees or business providers to comply with the laws or regulations of their markets,or to otherwise meet the standards consumers associate with our brand,may negatively impact our business.Additionally,inconsistent use of our brand and other intellectual prop

245、erty assets,as well as the failure to protect our intellectual property,could erode consumer trust and diminish our brand value,which could result in a material negative impact on our financial results.Reported incidents involving food-or beverage-borne illnesses,tampering,adulteration,contamination

246、,or mislabeling,whether or not accurate,could harm our business.Instances or reports,whether true or not,of unclean water supply or food-safety issues,such as food-or beverage-borne illnesses,tampering,adulteration,contamination,and/or mislabeling,either during growing,manufacturing,packaging,transp

247、orting,storing,or preparation,have in the past severely injured the reputations of companies in the food and beverage processing,grocery,and quick-service restaurant sectors.Any report linking us to such instances,even when false,unfounded,or inaccurate,could materially harm our sales and could lead

248、 to product liability claims,litigation(including class actions),temporary store closures,or other adverse consequences.Validated food-safety issues can also result in regulatory action and may lead to a recall of impacted products.Clean water is critical to the preparation of coffee,tea,and other b

249、everages,as well as ice for our cold beverages,and our ability to ensure adequate supplies of clean water and ice to our stores can be limited,particularly in some international locations.We continue to incorporate more products in our food and beverage lineup that require time and temperature contr

250、ol,including freezing or refrigeration,which increases the risk of food-safety related incidents if correct temperatures are not maintained during manufacturing,storage,distribution to stores,and at stores,due to mechanical malfunction or human error.We also face risk by relying on third-party food

251、suppliers to manufacture finished products,and to provide and transport ingredients and finished products to our stores.The product quality and service they deliver may be diminished by any number of factors beyond our control.Potential food safety incidents,whether at our stores,with our products,o

252、r 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 result in significant losses due to the costs of a recall,the destruction of product inventory,and lost

253、 sales due to the 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 harm our business.A decrease in customer traffic because of food-safety concerns or negative publicity,product recalls,viral-con

254、taminated 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 of operations.Additionally,instances of food or beverage-safety issues,even those solely involving the res

255、taurants or stores of competitors or of suppliers or distributors(regardless of whether we use or have used those suppliers or distributors),could adversely affect our sales on a regional or global basis by resulting in negative publicity about us,even if no Starbucks suppliers or products are impac

256、ted,or the foodservice industry in general.18If we are unable to meet our projections for new store openings or efficiently maintain the attractiveness of our existing stores,our operating results could suffer.Our growth depends in part on our ability to open new stores and operate them profitably o

257、n the forecasted timeline.In recentyears,the costs of opening new stores increased due in part to construction labor inflation and increased costs of materials and equipment.In addition,we incur substantial startup expenses each time we open a new store,and it takes time to ramp up the sales and pro

258、fitability of a new store,during which ramp-up period costs may be higher as we train new partners and build up a customer base.If we are unable to build the customer base that we expect or fail to overcome the higher startup expenses associated with new stores,our new stores may not be as profitabl

259、e as our existing stores.Our ability to open and profitably operate new stores is also subject to various risks,such as the identification and availability of desirable locations;the negotiation of acceptable lease terms;the need to obtain all required governmental permits(including zoning approvals

260、)and comply with other regulatory requirements,including health and safety;the availability of capable contractors and subcontractors;increases in the cost and decreases in the availability of labor and building material;changes in weather,natural disasters,pandemics,or other acts of God that could

261、delay construction and adversely affect guest traffic;our ability to hire and train qualified management and store partners;and general economic and business conditions.At each potential location,we compete with other foodservice and retail businesses for desirable development sites,construction con

262、tractors,management personnel,partners,and other resources.It is also possible that our new stores may negatively impact the profitability of existing stores nearby.If we are unable to successfully manage these risks,we could face increased costs and lower-than-anticipated sales and earnings in futu

263、re 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 associated with remodels,upgrades,or regular upkeep are higher than anticipated,stores are closed for remod

264、eling 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 operating results.Risks Related to Operating a Global BusinessWe are highly dependent on the financial perform

265、ance 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 net revenues in fiscal year 2024.If the North America operating segment revenue trends slow or decline,especially in

266、 our U.S.market,our other segments may be unable to make up any significant shortfall,and our business and financial results could be adversely affected.Since the North America segment is relatively mature and produces the large majority of our operating cash flows,such a slowdown or decline could r

267、esult in reduced cash flows for funding the expansion of our international businesses and other initiatives and for returning cash to our shareholders.We are increasingly dependent on the success of certain international markets in order to achieve our growth targets.Our future growth increasingly d

268、epends on the growth and sustained profitability of certain international markets.Some or all of our international market business units(“MBUs”),which we generally define by the markets in which they operate,may not be successful in their operations or in achieving expected growth,which ultimately r

269、equires achieving consistent,stable net revenues and earnings.The performance of these international operations may be adversely affected by economic downturns in one or more of the markets in which our large MBUs operate.A decline in performance of one or more of our significant international MBUs

270、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 China MBU,as our second-largest market overall and 100%company-operated,contributes meaningfully

271、to both consolidated and International net revenues and operating income.Due to the significance of our China MBU for our profit and growth,we are exposed to risks in China,including the risks mentioned elsewhere and the following:a highly competitive retail environment and the entry of new competit

272、ors 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,discretionary spending,and real estate and supply chain costs;19 the effects of U.S.-China relations,including escalating U.S.-Ch

273、ina tension and increased anti-Americanism,potential tariff increases,retaliations,restrictive regulations,or boycotts,and increasing political sensitivities in China;ongoing government regulatory reform,including relating to public health,food safety,tariffs and taxes,sustainability,and responses t

274、o climate change,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;and food safety related matters,including compliance with food safety regulations and ability to ensu

275、re 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 and licensees.Tastes naturally vary by region,and consumers in some international MBUs may not embrace our products t

276、o the same extent as consumers in the U.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 prime store locations or costs of compliance with market-specific regulatory requirements.Because many of our in

277、ternational operations are in an early phase of development,operating expenses as a percentage of related revenues are often higher compared to more developed operations.We face risks as a global business that could adversely affect our financial performance.We operate in 87 markets globally.We enco

278、unter differing cultural,regulatory,geopolitical,and economic environments within and among the markets in which we operate,and our ability to achieve our business objectives depends on our ability to successfully navigate these differing environments.Our ability to meet customer expectations is com

279、plicated by the risks inherent in our global operating environment,and our global success is partially dependent on our ability to leverage operating successes across multiple markets.Planned initiatives may not have appeal across multiple markets with our customers and could drive unanticipated cha

280、nges 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,regulatory,social,and political conditions in our markets,as well as negative effects on U.S.busin

281、esses due 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 heightened tension between the U.S.and such foreign governmental authorities,including protective meas

282、ures such as export and customs duties and tariffs,government intervention favoring local competitors,and restrictions on the level of foreign ownership;delays in store openings for reasons beyond our control,competition with locally relevant competitors,or a lack of desirable real estate locations

283、available for lease at reasonable rates,any of which could keep us from meeting annual store opening targets and,in turn,negatively impact net revenues,operating income,and earnings per share.difficulty in staffing,developing,and managing foreign operations and supply chain logistics,including ensur

284、ing the consistency of product quality and service,due to governmental actions affecting supply chain logistics,distance,language,and cultural differences,as well as challenges in recruiting and retaining high-quality employees in local markets;economic or trade sanctions affecting our ability to so

285、urce 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 not meet our projections;interpretation and application of laws and regulations,including

286、those relating to taxes,tariffs,labor,merchandise,anti-bribery,privacy,and environmental,social,and governance issues;20 local laws,policies,and conditions that make it more expensive and complex to negotiate with,retain,or terminate employees;labor strikes or work stoppages resulting from geopoliti

287、cal 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 and contract rights;foreign currency exchange rate fluctuations or requirements to t

288、ransact in specific currencies;limitations on the repatriation of funds and foreign currency exchange restrictions due to current or new U.S.and international regulations;and import or other business licensing requirements.Moreover,many of the foregoing risks are particularly acute in developing mar

289、kets,which are important to our long-term growth prospects.An inability to effectively manage the risks associated with our international operations could adversely affect our business and financial results.Our reliance on key business partners may adversely affect our business and operations.The gr

290、owth of our business relies on the ability of our licensee partners to implement our growth platforms and product innovations.Further,the degree to which we are able to enter into,maintain,develop,negotiate,and enforce appropriate terms and conditions of commercial and other agreements,as well as th

291、e performance of our business partners under such agreements,are critical to our business.Our international licensees may face capital constraints or other factors,including legal constraints,that may limit the speed at which they are able to expand and develop in a certain market.Our Channel Develo

292、pment business 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 perform its distribution and marketing commitments under our agreements and/or fails to support,pr

293、otect,and grow our brand in Channel Development,our Channel Development business could be adversely impacted for a period of time,present long-term challenges to our brand,limit our ability to grow our Channel Development business,and have a material adverse impact on our business and financial resu

294、lts.Our retail licensed operations are concentrated in a relatively small number of large licensees.If they are not able to access sufficient capital or are otherwise unable or unwilling to successfully operate and grow their businesses,it could have a material adverse effect on our results in the a

295、pplicable markets.Risks Related to Supply ChainIncreases in the cost of high-quality arabica coffee beans or other commodities or decreases in the availability of high-quality arabica coffee beans or other commodities could have an adverse impact on our business operations and financial results.The

296、availability and prices of coffee beans and other commodities are subject to significant volatility.We purchase,roast,and sell high-quality whole bean arabica coffee beans and related coffee products.The high-quality arabica coffee of the quality we seek tends to trade on a negotiated basis at a pre

297、mium above the“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 vary significantly.Increases in the“C”coffee commodity price increase the price of high-quality arabica coffee and impact our ability to enter into fix

298、ed-price purchase commitments.We frequently enter supply contracts whereby the quality,quantity,delivery period,and other negotiated terms are agreed upon,but the date,and therefore price,at which the base“C”coffee commodity price component will be fixed has not yet been established.The supply and p

299、rice of coffee we purchase can also be affected by multiple factors in the producing countries,such as weather,water supply quality and availability throughout the coffee production chain,natural disasters,crop disease and pests,general increases in farm input costs and costs of production,inventory

300、 levels,political and economic conditions,and the actions of certain organizations and associations that have historically attempted to influence prices of green coffee through agreements establishing export quotas or by restricting coffee supplies.Climate change may further exacerbate many of these

301、 factors.For example,extreme weather conditions such as drought or frost in Brazil have impacted coffee prices in the past,21and in the likely event that such weather conditions were to reoccur,become more frequent,and/or increase in severity in the future,they may have similar or worse consequences

302、 on coffee price volatility.Speculative trading in coffee commodities can also influence coffee prices.Because of the significance of coffee beans to our operations,combined with our ability to only partially mitigate future price risk through purchasing practices and hedging activities,increases in

303、 the cost of high-quality arabica coffee beans could have a material adverse impact on our profitability.In addition,if we are not able to purchase sufficient quantities of green coffee due to any of the above factors or due to a worldwide or regional shortage,we may not be able to fulfill the deman

304、d for our coffee,which could have a material adverse impact on our business operations and financial performance.We also purchase significant amounts of dairy products,particularly fluid milk,and to a lesser degree,plant-based dairy-free alternative products,such as oat milk and almond milk,to suppo

305、rt the needs of our company-operated retail stores.Additionally,other commodities,including tea and those related to food and beverage inputs,such as cocoa,produce,baking ingredients,meats,eggs,and energy,as well as non-food and beverage inputs,such as the components that comprise our packaging mate

306、rials,are important to our operations,as is the processing of these inputs.Increases in the cost of dairy products and other commodities,or lack of availability,whether due to supply shortages,delays or interruptions in processing,or otherwise,especially in international markets,could have a materia

307、l adverse impact on our profitability.Similarly,increases in the cost of,or lack of availability of,whether due to supply shortages,or delays or interruptions in the processing of,plant-based alternatives could have a material adverse impact on our profitability.Our supply chain may be unable to ful

308、ly 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 no assurance that our suppliers will be able to accommodate our anticipated growth or continue to supply c

309、urrent quantities at preferential prices or at all.An inability 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,financial condition,results of operations,and prospects.If we are unable to accurately forecast

310、 sales levels in each market or store and obtain sufficient ingredients or produce a sufficient supply to meet demand,we may incur higher expedited shipping costs and may temporarily run out of stock of certain products,which could negatively impact the enthusiasm of our customers and store partners

311、.We have been,and may in the future be,unable to fully address consumers demand for our products,particularly in the case of new offerings for which demand is higher than projected.Conversely,if demand does not meet our expectations,we have incurred,and could continue to incur,increased inventory wr

312、ite-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 supply chain and our reliance on suppliers could affect our ability to produce or deliv

313、er our products and could negatively impact our business 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 of our roasting plants,interruptions in service by our third-party logistic service p

314、roviders or common carriers that ship goods within our distribution channels,trade restrictions(such as increased tariffs or quotas,embargoes,or customs restrictions),pandemics,social or labor unrest,labor shortages,natural disasters,or political disputes and military conflicts that cause a material

315、 disruption in our supply chain could have a negative material impact on our business and our profitability.Additionally,our food,beverage,and other products are sourced from a wide variety of domestic and international business partners in our supply chain operations and,in certain cases,are produc

316、ed or sourced by our licensees directly.We rely on these suppliers to provide high-quality products and to comply with applicable laws.Our ability to find qualified suppliers who meet our standards and supply products in a timely and efficient manner is a significant challenge as we increase our fre

317、sh and prepared food offerings,especially with respect to goods sourced from outside the U.S.and from countries or regions with diminished infrastructure,developing or failing economies,or which are experiencing political instability,labor discord,disruption or shortages,or social unrest.For certain

318、 products,we may rely on one or very few suppliers.A suppliers failure to meet our standards,provide products in a timely and efficient manner,or comply with applicable laws is beyond our control.These issues could have a material negative impact on our business and profitability.22Risks Related to

319、Macroeconomic ConditionsOur financial condition and results of operations are subject to,and may be adversely affected by,a number of macroeconomic and other factors,many of which are largely outside our control.Our operating results have been,and will continue to be,subject to a number of macroecon

320、omic and other factors,many of which are largely outside our control.Any one or more of the factors listed below or described elsewhere in this risk factors section could have a material adverse impact on our business,financial condition,or results of operations:increases in real estate costs in cer

321、tain 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 goods and services,energy,and other materials throughout our supply chain;changes in g

322、overnmental 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 several closely located markets that may temporarily or for extended periods o

323、f 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 other markets around the world;especially in our largest markets,including the U.S.and China,labor discord or disrup

324、tion,geopolitical events,war,terrorism(including incidents targeting us),political instability,acts of public violence,boycotts,increasing anti-American sentiment in certain markets,or hostilities,social unrest,or health pandemics that lead to avoidance of public places or restrictions on public gat

325、herings such as in our stores;and fluctuations in foreign currency exchange rates.Unfavorable economic conditions could also adversely affect our suppliers and licensees,who in turn could experience cash flow problems,more costly or unavailable financing,credit defaults,and other financial hardships

326、.This could lead to supplier or licensee insolvency,increase our bad debt expense,or cause us to increase the levels of unsecured credit that we provide to suppliers and licensees.Further,the insolvency of any of our licensees could result in disrupted operations or our exit from a particular market

327、,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 financial results.As a retailer that is dependent upon consumer discretionary spending,our results of operations are sensitiv

328、e to changes in or uncertainty about macroeconomic conditions.A continued economic downturn or recession,or slowing or stalled recovery therefrom,may have a material adverse effect on our business,financial condition,or results of operations.Our customers may have less money for discretionary purcha

329、ses and may stop or reduce their purchases of our products or switch to our or our competitors lower-priced products as a result of various factors,including job loss,inflation,changes in prevailing interest rates,higher taxes,reduced access to credit,changes in federal economic policy,a global heal

330、th pandemic,international trade disputes,or geopolitical instability.For example,reductions and continuing volatility in China may be caused by,among other things:changes in consumer spending behaviors,including those caused by a decrease in consumer confidence in general macroeconomic conditions,a

331、decrease in consumer discretionary spending,increasing competition in the market,lower-priced competitor product offerings,negative economic impacts related to the rising geopolitical tensions between China and Taiwan,economic policies or sanctions,heightened data and cybersecurity risks associated

332、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 customer traffic and/or average value per transaction without a corresponding decrease in c

333、osts would put downward pressure on margins and could have a material negative impact on our financial results.There is also a risk that if negative economic conditions or uncertainty persist for a long period of time 23or worsen,consumers may make long-lasting changes to their discretionary purchasing behavior,including less frequent discretionary purchases on a more permanent basis or enduring c