Starbucks Corporation Common Stock

Item 1A. Risk Factors

You should carefully consider the risks described below in addition to the other information set forth in this Annual Report on Form 10-K, including the Managements Discussion and Analysis of Financial Conditions and Results of Operations section, the Quantitative and Qualitative Disclosures About Market Risk section, and the consolidated financial statements and related notes. If any ofThe risks described below are not the only risks facing the rCompany. Risks and uncertainties described in the cautionary factors not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition, and operating results.

Summary of Risks Associated with Our Business

Our business is subject to various risks and uncertainties that you should consider before investing in the Company. These risks are described below actua in more detail in this Item 1A. These risks include, but are not limited to, the following:

Risks Related to Brand Relevance and Brand Execution

Our success depends substantially occn the value of our or continue to occur, obrands, and failure to preserve their value could have a negative impact on our financial results.

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

Risks Related to Our bBusiness, financial condition

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 of operations.

Our investments to transform and enhance the trading price of our common stockcustomer experience, including through technology, may not generate the expected results.

Evolving could be materially andnsumer preferences and tastes, as well as adversely affected. The considerations and risks that follow ar public or medical opinions about the health effects of consuming our products, may adversely affect our business.

If our business partners and third-party providers do not satisfactorily fulfill their responsibilities and commitments, it could damage organized within relevant headur brand, and our financial results could suffer.

Reported incidents involving food- or beverage-borne illnesses, tamperings but may be relevant to other head, adulteration, contamination, or mislabeling, whether or not accurate, could harm our business. 

If we are unable to meet our projections for new store openings as well. M or efficiently maintain the attractiveness of our existing storeover, the rs, our operating results could suffer.

Risks below aRelated to Operating a Global Business

We are nothighly dependent on the only risks we face and addifinancial performance of our North America operating segment.

We are increasingly dependent on the success of certain international risks not currently known to us or thatmarkets 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 affect our business and operations.

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Risks we presently deem immaterial may emergeRelated 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 beother come material at any time and may nmodities could have an adverse impact on our business operations and financial results.

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

Interruption of our supply chain and our reliance on suppliers could affect our ability to produce or deliver our products and could negatively impact our business, reputa and profitability.

Risks Related to Macroeconomic Condition,s 

Our financial condition, and results of operations or the trading price of ouare subject to, and may be adversely affected by, a number of macroeconomic and other factors, many of which are largely outside our common stock. It is not possible ontrol.

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

Failure to meet our announced guidance or market expectations for our financial perfor managemence will likely adversely affect to predict all such risks, nor can it assess he market price and increase the volatility of our stock, and fluctuations in the stock market as a whole may also impact the market price and volatility of our stock.

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 impacavailability and cost of all such rilabor could adversely affect our business.

Risks Related to Competition 

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

Risks on Starbucks Related to Environmental, Social, and Governance Matters 

Climate change may have an adverse impact on our business.

Our business or the extent to whichis 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, any risk, or combination of rid could continue to cause, us to incur expense, hinder execution of our business strategy, and adversely impact our stock price.

Risks, may cause actu Related to Regulation and Litigation 

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

We have been, and could continue to be, party to litigation or other legal proceedings those contained in any forward-looking statements. Given these risks and uncertainties,at 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 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 investors shformation systems or by third parties on our behalf, could not place undu impact our reputation and brand and expose us to potential liability and loss of revenues.

We reliance on forward-looking statements as a prediction of ay heavily on information technology in our operations and growth initiatives, and any material failure, inadequacy, interruption, or security failure of that technology could harm our ability to effectively operate and grow our business and could adversely affect our financial results.

Risks Related to Intellectual Property 

Failure to adequately protect our intellectual property or ensure that we are not infringing on the intellectual resultsproperty of others could harm the value of our brand and our business.

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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 believe we have built an excellent reputation globally for the quality of our products, for delivery of a consistently positive consumer experience, and for our global social and environmental iand 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 successful in the future, particularly outside of the U.S. where the Starbucks brand and our other brands are less well-known, we believe we must preserve, grow, and leverage the value of our brands across all sales channels. Brand value is based in part on consumer perceptions on a variety of subjective qualities.

Erosion of trust in our brand value can be caused by isolated or recurring incidents originating both from us or our business partners, or from external events. Such incidents can potentially trigger boycotts of our stores or result in civil or criminal liability and, which can have a negative impact on our financial results. Incidents that can erode trust in our brand value include actual or perceived breaches of privacy or violations of domestic or international privacy laws, contaminated food, product recalls, store employees or other food handlers infected with communicable diseases, safety-related 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 in litigation. ConsNegative postings 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 publicity, 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 partners 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, treatment of employees, including our responses to unionization efforts, or the use of customer data for general or direct marketing or other purposes. FurthermorAllegations, even if untrue, ifthat we are not effrespectiveng in making sufficient progress toward our socialternationally recognized human rights, are failing to comply with applicable workplace and environmental program goalslabor laws, or in executing on our Reinven are aligned with position Plan, consumer trust in our brand may suffer, and this perception cos on social or geopolitical issues could result inalso negative publicity or litigationly impact our brand value. Additionally, if we fail to comply with laws and regulations, take controversial positions or actions or , fail to deliver a consistently positive consumer experience in each of our markets, including by failing to invest in the right balance of wages and benefits to attract and retain employees thatwho represent the brand well, or fail to foster an inclusive and diverse environment, our brand value may be diminished.

The ongoingIn addition, we cannot ensure that our store partners, licensees, or other business partners will not take actions that adversely affect the value and relevance of our brand may depend o.

Furthermore, if we are not effective in making sufficient progress toward our social and environmental and social program goals as well as the, consumer trust in our brand may successful execuffer, and this perception of the Reinvention Plan, each of whichcould result in negative publicity or litigation. The ongoing requires company-wide coordination levance of our brand alignment. We are working to manage risks and costmay depend on making sufficient progress to us, ward our licenseesenvironmental and our supply chain of any effectssocial program goals, each of climate change as well as diminishing energy which requires company-wide coordination and water resources. These risks include any ialignment. Increased public focus, including by governmental

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and nongovernmental organizations, on these and other enenvironmental sustainability matters, including packagingclimate change, diminishing energy and waste, animal health ater resources, packaging and welfaraste, deforestation and land , biodiversity loss, greenhouse. These risks may also include any gas emissions, and land use, may result in increased pressure to make commitments or sset goals and take actions to meet them, which could expose us to market, operational, and execution costs or risks. Some third tatements 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 object to the scope or nature of our social and 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) or , consumers (such as boycotts or negative publicity campaigns) that , 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 plans, and pricing strategyies 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 partners 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 financial condition. Our marketing, promotional, and advertising programs may not be successful in reaching consumers in the way we intend. Our success depends in part on whether the allocation of our advertising, promotional, and marketing resources across different channels, including digital, allows us to reach consumers eeffectively and efficiently, and reach consumers in ways that are meaningful to them. If the advertising, promo Additional and marketing programs or our pricly, many factors, including stoperategies are not successful, or are not as successful as those of our competitoring costs, constraints, our salesr changes, and market share could decrease.

Finally, consumers are focusing more on sustainabilityour current and the environmental impacts of operations, as well as the alignment of Starbucks actions with its stfuture competitors pricing

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ated mission, values and promises. An inability to meet consumer expectations with respect to these issuesnd marketing strategies, could adversely affect our financial results.

Risks Related to Our Business

If our business partners and third-party providers do not satisfactorisignificantly fulfill their responsibilities and commitments, it could damage our brand and our financial results could suffer.

Our global businessaffect our pricing strategy, ies (including our plans for new stores, brandedprice reductions, products and other initiativemotions, relies significantly on a variety of business partnerdiscounts, including licensee and joint venture relaticouponships, third-party manufacturers, distributors and retailers, particularly for our entire global Channel Developme, or free goods), which may prevent 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 visit a licensedus from competing effectively in certain geographies. For example, historically, in or company-operated store, so we provide training and support to, and monitor the operations of, certain of these licenseesder to partially offset inflation and other business partners. However, the product quality and service increases in they deliver may still be diminished by any number  costs of factors beyond our control, including financial constraints or solvency, adherence to sanitation protocols and guidance, labor shortages and other factorcore operating resources, we have gradually increased menu prices. 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 varietyThere can be no assurance that future cost increases, including as a result of domestic and interninflational business partners, and in certain cases such products are produced or sourced, can be offset by our licensees directly. We do not monitor the quality of non-Starbucksincreased menu products served by foodservice operators we have authorized to use our logos and provide branded products as part of their foodservices or that our current or future menu price business. Additionally, inconsistent uses of our brand and other of our intellectual properts will be fully assets, as well as failure to protect our intellectual property, can erode consumer trbsorbed by our cust and our brand value and have a material negative impact on our financialomers without any results.

Incidents involving food or beverage-borne illnesses, tampering, adulteration, contamination or mislabeling, wheing change to ther or not accurate, as well as adverse public or medical opinions about the health effects of consuming ouir demand for our products, could harm our business.

Instances or reports, whether true or not, of unclean water supply or food-safety issues, such as food or beIf the adverage-borne illnesses, tampertising, adulteration, contaminapromotion or mislabeling, either during growing, manufacturing, packaging, storal, and marketing 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 instanograms or our pricing strategies are not succes could severely hurt our sales and could possibly lead to product liability claims, litigation (including class actions), temporary store closures, or other adverse consequences. Clean water is critical to the preparation of coffee, tea and other beveragesful or are not as successful as those of our competitors, as well as ice for oour cold beverages,sales and our ability to ensure adequate supplies of clean water and ice to our stores can be limited, particularly in some international locatimarket share could decrease.

Finally, cons. Weumers are also continufocusing to incorporate more products in our food and beverage lineup that require freezing or refrigeration, which increases the risk of food safety related incidents if correct temperatures are not maintained due to mechanicon sustainability and the environmental malfunction or human error.

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We also fimpace risk by relying on third-party food suppliers to provide and transport ingredients and finished products to our stores. The product quality and servicets of Starbucks operations, as well as they deliver may be diminished by any number alignment of factors beyond our control and it may be difficult to detect contaminatStarbucks action or other defects in these products. There is gres with its stater risk from those we do not monitor, or do not monitor as closely. Furthermore, stemming fd mission, values, and prom the COVID-19 pandemic, there are stricter health regulations and guidelines and increased public concern over food safeises. An inability standards and controls. Potential food safety incidents, whether at our stores or involving our business partners, could lead to wide public exposure, which could materially harm our business.

In addito meet consumer expectation, instances of food or beverage-safety issues, even those involving solely the s with restaurants or stores of competitors or of suppliers or distributors (regardless of whepect to ther we use or have used those suppliers or distributors),issues could adversely affect our sales on a regional or global basis by resulting in negative publicity about us or the foodservice industry in general. A decrease in customer traffic as a result of food-safety concerns or negative publicity, or as a result of a temporary closure of any of our stores, product recalls, viral-contaminated food or beverage claims or other food or beverage-safety claims or litigation, could materially harm our bfinancial results.

Risks Related to Our Business and results of operations.

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.

There isWe may no assurance that we will t be able to implement important strategic initiatives in accordance with our expectations or that they will generate expected returns, which may result in an adverse impact on our business and financial results. These strategic initiatives, which include our Reinvention PBack 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 employeepartners to deliver a superior customer experience;

building our leadership position around coffee;

driving convenience, brand engagement, and digital relationships through our mobile, loyalty, delivery, and digital capabilities both domestically and internationally;

simplifying store administrative tasks to allow store partners to better engage with customers;

increasing the scale of the Starbucks store footprint with disciplined global expansion and intcontinuing to introducinge flexible and unique store formats, including the accelerated development of alternative store formats (such as Starbucks Pickup stores, Starbucks Now stores and curbside pickup) certain markets;

adjusting rapidly to changing customer preferences and behaviors as a result of the COVID-19 pandemic, cchanging economic conditions, and increased global interest rates and inflation;

moving to a more licensed store model in certain markets and a more company-operated model in other markets;

creating new occasions in stores across all dayparts with new product offerings, including our growing lunch food and beverage product lineup;

continuing the global growth of our Channel Development business through our supply, distribution, and licensing agreements with Nestl and 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 operating costs, particularly general and administrative expenses.

In addition to other factors listed in this risk factors section, factors that may adversely affect the successful implementation of these initiatives, which could have a material adverse impact on our business and financial results, include the following:

imposition of additional taxes by jurisdictions, such as on certain types of beverages or based on number of employees;

construction cost increases associated with new store openings and remodeling of existing stdelays or cancellations of stores; delays in store o openings for reasons beyond our control, such as potential shortages of materials and labor and, delays in permits, or a lack of desirable real estate locations available for lease at reasonable rates, eitherany of which could keep us from meeting annual store opening targets in the U.S. and internationally;

governmental regulations or other health guidelines concerning operations of stonot 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 addres, including due to public hes sustainability goals and mitigate the impacts of climate change;

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inalth emergencies;

bility to timely innovate with new product offerings, or the potential that such offerings may not successfully scaling our supply be well-received by consumers;

delays or cancellations of remodels based on chainnges infrastructure as our produ macroeconomic conditions, changes in expected project offeringsbenefits, or other factors;

construction cost increase and as we continue tos associated with new store openings and remodeling of expand, includisting our emphasistores;

the challenges on a broad range of high-quaf company-wide coordination and alignment;

inability food offeri to identify or act on opportunities to deliver anticipated cost savings;

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impositionot successfully adapting to custom of additional taxes by jurisdictions, such as on certain types of beverages or based on number or market factors affecting our supply chain as we work to addf employees;

governmental regulations or other health guidelines concerning operations of storess sustainability and climate change;

the , 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 initiatives; 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 with our goals, policies, and standards. If we are not successful in implementing our strategic initiatives, or, in the event we undertake large acquisitions, integrations, and divestitures, we may be required to evaluate whether certain assets, including goodwill and other intangibles, have become impaired. In the event we record an impairment charge, it could have a material impact on our financial results.

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 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 customers, in part through digital channels and loyalty initiatives, mobile order and payment systems, and enhancement of our technologies. We also continue to expand and refine our mobile ordering process. If these customer experience initiatives are not successfully executed or do not generate expected results, 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 areas 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 ma, as well as adverse public or medical opinions about the health effects of consuming our products, may adversely affect our business.

Our continued success depends on our ability to attract and retain customers. Our financial results could be adversely affected by a shift in consumer spending away from outside-the-home food and beverages (such as a reduction in discretionary spending as a result of the resumption of student loan payments); lack of customer acceptance of new products (including due to price increases necessary to cover the costs of new products or higher input costs), brands (such as the global expansion of the Starbucks brand), and platforms (such as features of our mobile technology, changes in our loyalty rewards programs, and our delivery services initiatives); or customers reducing their demand for our current offerings as new products are introduced. In addition, some of our products contain caffeine, dairy products, sugar, and other compounds and allergens, the health effects of which are the subject of public and regulatory scrutiny, including the suggestion of linkages to a variety of adverse health effects. Particularly in the U.S., there is increasing consumer awareness of health risks, including obesity, as well as increased consumer litigation based on alleged adverse health impacts of consumption of various food and beverage products. An unfavorable report on the health effects of caffeine or other compounds present in our products, whether or not accurate or not, 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 the demand for our beverages and food products and could mamaterially 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 business and results of operations. Our financial results have been, and could continue to

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be, adversely affected by changes in macroeconomic conditions, including increases in real estate costs in certain domestic and international marketthose discussed in more detail elsewhere in this risk factors section. Such changes have impacted, and could continue to impact, customer routines, employer work-from-home policies, and consumer behavior, including consumers ability or willingness to spend discretionary income on our products.

If our business partners and third-party providers do not satisfactorily fulfill their responsibilities and commitments, it could damage our brand, and our financial results could suffer.

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, inflationary pressures aparticularly 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 visit 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 changes iservice they deliver may still be diminished by any number of factors beyond our control, including financial constraints or solvency issues, adherence to sanitation prevailing interest rates, disruptions to our supply chain, changes in governmental rules and approaches to taxotocols 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 domestic 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 foodservice 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 property 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, 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 flu/or mislabeling, either during growing, manufactuations in foreign currency exchange rates. Such changes could affect consumer behavior aring, packaging, transporting, 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 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 otheir ar beverages, as well as ice for our cold beverages, and our ability or willingnesto 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 control, including freezing or refrigeration, which increases to spenhe risk of food-safety related incidents if correct temperatures are not maintained discretionary income on our uring 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 suppliers to manufacture finished products. Fur, and to provide and transport ingredients and finished products to our stores. The product quality and service thermore,y deliver may be diminished by any number of factors beyond our financial results have beencontrol. Potential food safety incidents, whether at our stores, with our products, or involving our business partners, could lead to wide public exposure, regulatory action, and potential litigation, which could materially harm our business.

A widespread Starbucks product recall could result in significant losses due to the costs of a recall, the destruction of product inventory, and lost sales due to the unavailability of product for a period of time, and could continue to be adalso 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-contaminated food or beversely affected by the persisting iage 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 restaurants 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 impacts ed, or the foodservice industry in general.

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If we are unable tof t meet our projections for new store openings or efficiently maintain the COVID-19attractiveness of our existing stores, our operating results could suffer.

Our growth depends in pandemic, including the disruption of rt on our ability to open new stores and operate them profitably on the forecasted timeline. In recent years, 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 profitability 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 routines, changes to employer work-from-home policies and changebase that we expect or fail to overcome the higher startup expenses associated with new stores, our new stores may not be as profitable as our existing stores. Our ability to open and profitably operate new stores is also 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) 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 consumer behaviweather, natural disasters, pandemics, or other acts of God that could delay construction and adversely affect guest traffic; our ability to hire and train qualified management and store partners; and general economic and business conditions. At each potential location, we compete with other foodservice and retail businesses for and desirable development sites, construction contractors, management personnel, partners, and othe ability or willingness to sper 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 discretionary income on oearnings in future periods, which could have a material negative effect on our operating results.

In addition, we continue to improve our existing stores through remodels, upgrades, and regular upkeep. If the costs associated with remodels, upgrades, or regular upkeep are higher than anticipated, stores are closed for remodeling for longer periods than planned, or remodeled stores do not perform as expected, we may not realize our products.

jected return on investment, which could have a material negative effect on our operating results.

Risks Related to Operating a Global Business

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

Our financial performance is highly dependent on our North America operating segment, which comprised approximately 745% of consolidated total net revenues in fiscal year 20234. If the North America operating segment revenue trends slow or decline, especially in 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. And becausSince the North America segment is relatively mature and produces the large majority of our operating cash flows, such a slowdown or decline could result in reduced cash flows for funding the expansion 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 depends 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 countriemarkets in which they operate, may not be successful in their operations or in achieving expected growth, which ultimately requires 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 countriemarkets in which our large MBUs operate. A decline in performance of one or more of our significant international MBUs could have a material adverse impact on our consolidated results.

The International segment is a significn important profit center driving our global returns, along with our North America segment. In particular, our China MBU , as our secontrd-largest market overall and 100% company-operated, contributes meaningfully to both consolidated and International net revenues and operating income. China is expected to be our fastest growing market in terms of percentage growth, our second largest market overall and 100% company-owned. Due to the significance of our China marketMBU for our profit and growth, we are exposed to risks in China, including the risks mentioned elsewhere and the following:

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the effectsa of current U.S.-China relations, including rounds of tariff increases and retaliations and increasing restrictive regulations, potential boycotts and increasing anti-Americanism;

escalating U.S.-China tension and increasing political sensitivities in China;

the lingering effects of the COVID-19 pandemic and related governmental regulations and restrictions on our operations in China;

highly competitive retail environment and the entry of new competitors to the specialty coffee market in China;

changes in economic conditions in China and potential negative effects to the growth of its middle class, wages, labor, inflation, discretionary spending, and real estate and supply chain costs;

ongoing govethe effects of U.S.-China relations, including escalating U.S.-China tension and increased anti-Americanism, potential tariff increases, retaliations, restrictive regulations, or boycotts, and increasing political sensitivities in China;

ongoing government regulatory reform, including relating to public health, food safety, tariffs and taxes, sustainability, and responses to 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 

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food- safety related matters, including compliance with food- safety regulations and ability to ensure product quality and safety.

Additionally, some factors that will be critical to the success of our international operations 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 to 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 countrymarket-specific regulatory requirements. Because many of our international operations are in an early phase of development, operating expenses as a percentage of related revenues are often higher compared to more developed operations.

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

We operate in 867 markets globally. Our internationalWe encounter differing cultural, regulatory, geopolitical, and economic environments within and among the markets in which we operations are also sube, and our ability to achieve our business object to additional inherent ives depends on our ability to successfully navigate these differing environments. Our ability to meet customer expectations is complicated by the risks of conducting businesinherent in our global operating environment, and our global success is partially dependent on our ability to leverage operating successes abroad, such as:

foreign currency excross multiple markets. Planned initiatives may not have appeal across multiple markets with our customers and could drive unanticipated change rate fluctuats in customer perceptions, or requirements to transa and market share.

Our international operations are also subject in specific currencies; 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. businesses due to increasing anti-American sentiment in certain markets;

interpretation and application of laws and regulations, including tax, tariffs, labor, merchandise, anti-bribery and privacy laws and regulations;

resrestrictive 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 measures such as export and customs duties and tariffs, government intervention favoring local competitors, and restrictions on the level of foreign ownership;

import or other business licensing requirements;

the enforceability of intellectual property anddelays in store openings for reasons beyond our control, competition with locally relevant contract rights;

limitations on the repatriationmpetitors, or a lack of funds and foreign currency exchange restricdesirable real estate locations due to current available for new U.S. and internatilease at reasonal regulations;

in developing economies, the growth rate in the portion of the population achieving sufficient lble rates, any of which could keep us from meeting annual store opening targets and, in turn, negatively impact net revels of disposablenues, operating income may not be as fast as we forecast;, and earnings per share.

difficulty in staffing, developing, and managing foreign operations and supply chain logistics, including ensuring 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;

local laws that make it more expensive and complex to negotiate with, retain or termineconomic or trade sanctions affecting our ability to source products or conduct business in one or more of the markets in which we operate employees;

local reg;

in developing economies, the growth rate in the portion of the populations, health guidelines and safety  achieving sufficient levels of disposable income may not meet our protocols affecting our operjections;

interpretation and applications; of laws and

delays regulations, in store opencluding those relatings for reasons beyo to taxes, tariffs, labor, merchandise, anti-bribery, privacy, and our controenvironmental, social, competand governance issues;

local laws, policies, and condition with locally relevants that make it more expensive and competitorslex to negotiate with, retain, or a lack of desirable real estate locations available fterminate employees;

labor strikes or work stoppages resulting from geopolitical instability or lease at reasonable rates, any of social unrest affecting one or more of the markets in which could keep us from meewe operate;

local regulations, health guidelines, and safety protocols affecting annual store opening targetsour operations;

the enforceability of intellectual property and, in turn, negatively imp contract rights;

foreign currency exchange rate fluctuations or requirements to transact net revenues, operin specific currencies;

limitations on the repatriating income on of funds and foreign currency exchange restrictions due to current or new U.S. and earnings international regulations; and

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import or other share.

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business licensing requirements.

Moreover, many of the foregoing risks are particularly acute in developing countriemarkets, which are important to our long-term growth prospects. An inability to manage eeffectively 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 growth of our business relies on the ability of our licensee partners to implement our growth platforms and product innovations as well as on . Further, the degree to which we are able to enter into, maintain, develop and , negotiate a, and enforce appropriate terms and conditions of, and enforce, c commercial and other agreements and, as well as the performance of our business partners under such agreements, are critical to our business. Our international licensees may face capital constraints or other factors t, including legal constraints, that may limit the speed at which they are able to expand and develop in a certain market. Our Channel Development business is heavily reliant on Nestl, which has the 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, protect, and grow our brand in Channel Development, our Channel Development business could be adversely impacted for a period of time, present long-term challenges to our brand, limit our ability to grow our Channel Development business, and have a material adverse impact on our business and financial results. Additionally, the growth of our Channel Development business is in part dependent on the level of discreOur retail licensed operationary support provided by our retail and lis are concensed store businesses.

There are generally a rtrated in a relatively small number of licensee partners operating in specific marketarge licensees. If they are not able to access sufficient funds or financing,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 applicable markets.

Risks Related to Supply Chain

Increases in the cost of high-quality arabica coffee beans or other commodities or decreases in the availability of high-quality arabica coffee beans or other commodities could have an adverse impact on our business anoperations and financial results.

The availability and prices of coffee beans and other commodities are subject to significant volatility. We purchase, roast, and sell high-quality whole bean arabica coffee beans and related coffee products. The high-quality arabica coffee of the quality we seek tends to trade on a negotiated basis at a premium above the C price. This premium depends upon , among othe sr 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 also impact our ability to enter into fixed-price purchase commitments. We frequently enter into supply contracts whereby the quality, quantity, delivery period, and other negotiated terms are agreed upon, but the date, and therefore price, at which the base C coffee commodity price component will be fixed has not yet been established.

The supply and price of coffee we purchase can also be affected by multiple factors in the producing countries, such as weather, water supply quality and availability throughout the coffee production chain, natural disasters, crop disease and pests, general increases in farm inputs costs and costs of production, inventory levels, political and economic conditions, and the actions of certain organizations and associations that have historically attempted to influence prices of green coffee through agreements establishing export quotas or by restricting coffee supplies. Climate change may further exacerbate many of these factors. Speculative trading in coffee commodities can also influence coffee prices. For example, extreme weather conditions such as drought or frost in Brazil have impacted coffee prices in the past, and in the likely event that such weather conditions were to reoccur, become more frequent, and/or increase in tseverity in the future, they wouldmay have similar or worse consequences 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 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 demand for our coffee, which could have a material adverse impact on our business operations and financial performance. 

We also purchase significant amounts of dairy products, particularly fluid milk, 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 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 processing ofcomponents theat comprise inputour packaging materials, are important to our operationss, 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 material 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.

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

Even in the absence of acute disruptions or interruptions, our supply chain may be unable to fully meet current or future business needs. There can be no assurance that our suppliers will be able to accommodate our anticipated growth or continue to supply current 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. Interruption of our supply chain could affect our abilitf we are unable to accurately forecast 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. 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 write-offs. Finally, if we are unable to scale and improve our forecasting, planning, production, and logistics management, we could frustrate our customers, lose sales, or diminish our brand reputation.

Interruption of our 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.

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Any material interruption in our supply chain,  (such as material interdisruption 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 providers 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 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 produced or sourced by our licensees directly. We rely on these suppliers to provide high-quality products and to comply with applicable laws. Our ability to find qualified suppliers who meet our standards and supply products in a timely and efficient manner is a significant challenge as we increase our fresh 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 sodiscord, disruption or shortages, or social unrest. For certain products, we may rely on one or very few suppliers. A supplier's 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.

Risks Related to Macroeconomic Conditions

Our financial condition and results of operations are subject to, and may be adversely affected by, a number of macroeconomic and other factors, many of which are also llargely outside our control.

Our operating results have been in the past, and will continue to be, subject to a number of macroeconomic and other factors, many of which are largely outside our control. Any one or more of the factors listed below or described elsewhere in this risk factors section could have a material adverse impact on our business, financial condition and/, or results of operations:

increases in real estate costs in certain domestic and international markets;

infladisruptionary pressures and s to our supply chain;

changes in prevailclimate, including interest rates;

disruptions tochanges 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 governmental rules and approaches to taxation;

fluctuadverse outcomes of litigations in foreign currency ex;

inflationary pressures and change rates;

adverse outcomes of litigations 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 but significantlyor for extended periods of time affect our retail business in such markets; 

changes in climate, including changes to

government shutdowns or the frequency or severityrisk of extreme weather events,government shutdowns, as well as thate impact the price and availability or cost of goods and services, energyor expected impact of elections, both in the U.S. and in other materials thrkets aroughout our supply chain; andnd the world;

especially in our largest markets, including the U.S. and China, labor discord or disruption, geopolitical events, war, terrorism (including incidents targeting us), political instability, acts of public violence, boycotts, increasing anti-

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American sentiment in certain markets, or hostilities and, social unrest and, or health pandemics that lead to avoidance of public places or restrictions on public gatherings 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. 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, ithe insolvency of any of our licensees becomes insolvent this could result incould result in disrupted operations or our exit from a particular market, and negatively impact our reputation.For example, one of our licensees is experiencing financial solvency issues,whichmay require the Company to expend capital resources to help fundtheiroperating expenses in the short term.

Economic conditions in the U.S. and international markets c 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 sensitive to changes in or uncertainty about macroeconomic conditions. A continued economic downturn or recession, or slowing or stalled recovery therefrom, may have a material adverse effect on our business, financial condition, or results of operations. Our customers may have or in the future have less money for discretionary purchases and may stop or reduce their purchases of our products or switch to Starbucksour or our competitors lower-priced products as a result of various factors, including job losses, inflation, changes in prevailing interest rates, higher taxes, reduced access to credit, changes in federal economic policy, a global health pandemic, international trade disputes, or geopolitical instability. We may also experience a reduction and increased volatility in demand for our products in connection with a global health pandemic. For example, in China,  reductions and continuing volatility in that marketChina may be caused by, among other things: store closures or modified operatchanges in consumer spending behaviors, including hours anthose caused business model, reduced custoy a decrease in consumer traffic due to illness, quarantine or government or self-imposed restricconfidence in general macroeconomic conditions placed on our stores operations, impacts

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, a decrease in consumer discretionary spending, increasing competition in the market, lower-pricaused bycompetitor precautionary measures such as thoseoduct offerings, negative economic impacts related to face coverings and vaccinatthe rising geopolitical tensions and changes in between China and Taiwan, econsumeomic policies or spending behavioranctions, including those caused by sheightened data and cybersecurity risks associal distancingted with conduct of business in China, a decrease in consumer confidnd food-safety related matters. We may also experience in general macroeconomic conditions a reduction or increased volatility in demand a decreasefor our products in consumer discrenectionary spending with a global health pandemic. Decreases in customer traffic and/or average value per transaction without a corresponding decrease in costs would put downward pressure on margins and wcould have a material negatively impact on our financial results. There is also a risk that if negative economic conditions or uncertainty persist for a long period of time or worsen, consumers may make long-lasting changes to their discretionary purchasing behavior, including less frequent discretionary purchases on a more permanent basis or enduring changes in behavior that precipitate a more general downturn in the restaurant industry. These and other macroeconomic factors could have an adverse effect on our sales, profitability, or development plans, which could harm our results of operations and financial condition.

Failure to meet our announced guidance or market expectations for our financial performance a will likely adversely affect the market price and fincrease the volatility of our stock, and fluctuations in the stock market as a whole will like may also impact the market price and volatility of our stock.

We have in the past failed, and may in the future fail, to meet our announced guidance or market expectations, which has adversely adffected, and could in the future adversely affect, the market price and volatilit of our stock. Our guidance is based on certain assumptions, which may of our stock.

r may not prove to be correct. Failure to meet our announced guidance or market expectations going forward, particularly with respect to our operational and financial results, anshareholder returns, and expectations regarding the success of our Reinvention PBack to Starbucks plan and related guidance, environmental performance and shareholder returnwhether due to our assumptions not being met or the impact of various risks and uncertainties, will likely result in a decline and/or increased volatility in the market price of our stock. In addition, price and volume fluctuations in the stock market as a whole may affect the market price of our stock in ways that may be unrelated to our financial performance.

Risks Related to Human Capital

CThe 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.

Much of our future success depends on the continued availability and service of key personnel and employees. The loss of any of our executive officers, including our chief executive officer or other key senior management personnel, could harm our business. Our success also depends substantially on the contributions and abilities of our retail store employees upon whom we rely to give customers a superior in-store experience and elevate our brand. Accordingly, our performance depends on our ability to recruit and retain high-quality management personnel and other employees to work in and manage our stores, both domestically and internationally. Our ability to do so has been and may continue to be impacted by challenges in the labor market (which has experienced, and may continue to experience, wage inflation and labor shortages), our position with respect to unions and the unionization of partners, increased employee turnover, changes in availability of our workforce and a shift toward remote or hybrid work arrangements. Our ability to attract and retain corporate, retail, and other personnel is also acutely impacted in certain international and domestic markets where the competition for a relatively small number of qualified

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employees is intense or in markets whangeere large high-tech companies are able to offer more competitive salaries and benefits. These factors and others have also made, and may continue to make, it more difficult to maintain an effective system of operational internal controls for a dispersed workforce, and to train partners to deliver a consistently high-quality product and customer experience. Additionally, there is in the availability of and the tense competition for qualified technology systems developers, who are necessary to develop and implement new technologies for our growth initiatives, including increasing our digital relationships with customers. If we are unable to recruit, retain, and motivate employees sufficiently to maintain our current business and support our projected growth, our business and financial performance may be adversely affected.

Changes in the availability and cost of labor could adversely affect our business.

Our business could be adversely impacted by increases in labor costs, including wages and benefits, which, in a retail business such as ours, are two of our most significant costs, both domestically and internationally, including those. Such increases could be triggered by state and federal legislation and regulatory actions regarding wages, scheduling, and benefits; increaseds in healthcare and workers compensation insurance costs; and increaseds in wages and costs of other benefits necessary to attract and retain high-quality employees with the right skill sets.  For example, at the federal level, effective July 1, 2024, the United States Department of Labor increased the minimum salary threshold requirements for employees who are exempt from the Fair Labor Standards Act overtime requirements, and at the state level, Assembly Bill 1228 increased minimum wage and established working hour and working condition standards for certain partners in California. The grose changes, along with others that may occur in the future, could have a significant impact on the classification of employees as being exempt from overtime and add to our labor costs. The growth of our business can make it increasingly difficult to locate and hire sufficient numbers of employees, to maintain an effective system of operational internal controls for a globally dispersed enterprise, and to train employees worldwide to deliver a consistently high-quality product and customer experience, which; the failure to do so could materially harm our business and results of operations. Furthermore, we have experienced, and could continue to experience, a shortage of labor for store positions, and the increased availability of alternative telecommuting employment options by other employers could decrease the pool of available qualified talent for other key functions. In addition, our wages and benefits programs may be insufficient to attract and retain the best talent.

Starting in September 2021, Starbucks partners at a number of company-operated stores sought union representation through elections conducted by the authoritiesNational Labor Relations Board. Unions have secured representation rights at a number hundreds of theseour more than 10,000 U.S. company-operated stores, with potentially more to follow.

The law places limitations on unilateral actions taken with respect to employees who are repres, and Starbucks is engaged in collective bargaining for initial collective bargaining agreemented by unions becaus for these in certain circumstances the law requires the employstores. If we encounter to ndifficulties negotify and toating collective bargain with the union prior to making certain operational or other changes that may affect employee wages, hoursing agreements, are unsuccessful in those efforts, or other terms andbtain conditions of employment. These limitations tracts with unfavorable terms, then we could negatively affect our coincur additional costs, change our employee culture, and decrease our flexibility, and increase our operational complexity. Theyese risks could also present the potential to disrupt our current operational model by affecting our ability to fully implement operational changes to enhance our efficiency and adapt to changing business needs.

Moreover, we have experienced job acThe law places limitations in some company-operon unilated stores. Such job ral actions and work stoppages have the potentialtaken with respect to negatively impact our operations, third-party providers upon whom we rely to deliver product, our sales, and our costs.

Additionally, our position with respectemployees who are represented by unions because, in certain circumstances, the law requires the employer to unions andnotify and to bargain with the unionization of partners could negatively impact how our brand is perceived and have adverse e prior to making certain operational or other changes that may affects on our business, including on our financial results. These positions could also expose us to legal risk, causing us to incur costs to defend legal and regulatory actions, potential penalties and restric employee wages, hours, or other terms and conditions of employment. Moreover, where a petitions, and for repuresentational harm.

The loss of key personnel or difficulties recruiting and retaining qualified personnel or effectively manags been filed by a union, the employer is also constrained from making changes in our workforce could adversely impact wages, hour businesss, and financial results.

Much of our future success depends on the continued availability and service of key personnel and employees. The loss of any of our execuworking conditions. These limitations could also negative officers or other key senior management personnel could harm our business. Our success also depends substantially on the contributionsly affect our costs, change our employee culture, decrease our flexibility, and abilities of oincrease our retail store eoperational comployees upon whom we relyexity. They also present the potential to give customers a superior in-store exdisrupt our current operience and elevate our brand. Accordingly, our performance depends onational model by affecting our ability to recruit and retain high-quality managfully implement opersonnel and other employeeational changes to work in and managenhance our stores, both domesticallefficiency and internationally. Our

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adabilitypt to do so has been and may continue to be impacted by challenges in the labor marketchanging business needs.

Moreover, whiche hasve experienced and may continue to experience wagejob actions inflation, labor shortages, increased employee turnover, changes in availability of our workforce and a shift toward remote or hybrid work arrangement some company-operated stores. Our ability to attractSuch job actions and retain corporate, retail and owork stoppages have ther personnel is also acut potential to negatively impacted in certain intern our operational and domestic markets where the competitis, third-party providers upon for awhom we relaty to delively small numbr product, our sales and customer of qualififlow in impacted employees is intense or in markets where large high-tech colocations, our costs, and can also have a negative impanies are able to offer more competitive salaries act on our reputation and benefits. rand.

Additionally, there is intense competitour position with respect to union for qualifies and technology systems dehe unionization of partners could negativelopers necessary to develop y impact how our brand implement new technologies fors perceived and could have material adverse effects on our growth initiativesbusiness, including increasingon our digitfinancial relationships with customers. If we arsults. These positions could also expose unables to recruit, retain and motivate employees sufficiently to maintain our current businesslegal risk, causing us to incur costs to defend legal and regulatory actions, potential penalties and support our projected growth, our businessrestrictions, and financial performance may be adversely affectedreputational harm.

Risks Related to Competition

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

The specialty coffee market is intensely competitive, including with respect to product quality, innovation, service, convenience,  (such as delivery service and mobile ordering), and price, and we face significant and increasing competition in all of these areas in each of our channels and markets. Accordingly, we do not have leadership positions in all channels and markets. In the U.S., the ongoing focus by large competitors in the quick-service restaurant sector on selling high-quality specialty coffee beverages could lead to decreases in customer traffic to Starbucks stores and/or average value per transaction, adversely affecting our sales and results of operations. Similarly, continued competition from well-established competitors, or

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competition from large new entrants or well-funded smaller companies, in our domestic and international markets could hinder growth and adversely affect our sales and results of operations in those markets. Many small competitors also continue to open coffee specialty stores in many of our markets across the world, which in the aggregate may also lead to significant decreases of customer traffic to our stores in those markets. Increased competition globally in packaged coffee and tea and single-serve and ready-to-drink coffee beverage markets, including from new and large entrants to this market, could adversely affect the profitability of the Channel Development segment. In addition, not all of our competitors may seek to establish environmental or sustainability goals at a comparable level to ours, which could result in lower supply chain or operating costs for our competitors. We may incur increased costs associated with reducing carbon dioxide and other greenhouse gas emissions, reducing the use of plastic, or imposing performance obligations on our suppliers that could increase financial obligations for us and our business partners and could affect our profitability. Additionally, if we are unable to respond to consumer demand for healthy beverages and foods, or our competitors respond more effectively, this could have a negative effect on our business.  We believe our ability to compete successfully in the current market environment depends on our ability to improve existing products; successfully develop and introduce new products; price our products appropriately; deliver a satisfactory customer experience; manage our investments in store development, technology, digital engagement, and delivery; and respond effectively to our competitors actions or offerings or to unforeseen disruptive actions. There can be no assurance these strategies will be effective, and some strategies may be effective at improving certain metrics while adversely affecting others, which could have the overall effect of harming our business. Furthermore, declines in general consumer demand for specialty coffee products for any reason, including due to consumer preference for other products, flattening demand for our products, changed customer daily routines or traffic to stores, or changed customer spending behaviors due to challenging economic conditions, could have a negative effect on our business.

Risks Related to Environmental, Social, and Governance Matters

Climate change may have an adverse impact on our business.

We recognize that there are inherent climate-related risks wherever business is conducted. For example, as we noted above, the supply and price of coffee we purchase can also be affected by multiple factors in the producing countries, such as weather and water supply quality and availability, which. These factors may be caused by or exacerbated by climate change. Climate change may also result in decreased availability, less favorable pricing, or other adverse consequences for non-coffee inputs in our products. In particularaddition to impacts in producing countries, climate change may affect the availability of water in the markets in which we operate and expect to operate and elsewhere in our supply chain, which could have adverse impacts on our business. We operate in 867 markets globally. Our properties and operations may be vulnerable to the avarious adverse effects of climate change, which are predicted to increase the frequency and severity of extreme weather events and other natural cycles such as wildfires and droughts. Such events have the potential to disrupt our operations, cause store closures, disrupt the business of our third-party suppliers, and impact our customers and partners, all of which may cause us to suffer losses and incur additional costs to maintain or resume operations.

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

We are subject to changing rules and regulations promulgated by a number of governmental and self-reregulatorys and organizations, including the SEC, the European Union, the Nasdaq Stock Market, and the Financial Accounting Standards Board. These rules and regulations continue to evolve in scope and complexity, and many new requirements have been created in response to laws enacted by Congress, ma and state legislatures, which in certain cases may be inconsistent with one another, making compliance more difficult and uncertain. In addition, increasingly regregulators, customers, investors, employees, and other stakeholders are focusing on environmental, social, and governance (commonly referred to as ESG) matters and related disclosures and operational regulations. These changing rules, regulations, and stakeholder expectations have resulted in, and are likely to continue to result in, increased general and administrative expenses and increased management time and attention spent complying with or

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meeting such regulations and expectations. For example, developing and acting on initiatives within the scope of ESG, and collecting, measuring, and reporting ESG-related information and metrics can be costly, difficult, and time consuming and is subject to evolving reporting standards, including the SECs proposed climate-related reporting requirements, and similar proposals by other international regulatory bodies. For example, the European Unions Corporate Sustainability Reporting Directive (CSRD), with different implementation dates depending on company size and geographic location, has established extensive ESG-related disclosure requirements based on the European Sustainability Reporting Standards, including certain assurance obligations. The standards used to identify and collect the information and data required pursuant to the CSRD are still developing and uncertain, and this lack of certainty could result in increased costs related to complying with our reporting obligations under the CSRD and could increase the risk of failing to comply with the CSRD.

We may also communicate certain initiatives and goals, regardinglated to environmental matters, diversity, responsible sourcing and, social investments, and other ESG-related matters, in our SEC filings or in other public disclosures. These initiatives and goals within the scope of ESG could be difficult and expensive to implement, the technologies needed to implement them may not be cost

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effective and may not advance at a sufficient pace, and we could be criticized for the accuracy, adequacy, or completeness of the disclosure. Further, statements about our ESG-related initiatives and goals, and progress toward those goals, may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future. Previously reported data may in the future be adjusted to reflect improvements in the availability and quality of third-party data, changing assumptions, changes in the nature and scope of our operations, and other changes in circumstances. If wour ESG-related data, processes, and reporting are incomplete or inaccurate, our reputation, business, financial performance, and growth could be are dversely affected. If we are unable to meet our ESG-related goals o, commitments, initiatives, or evolving stakeholder or industry expectations and standards,  if we change or iare perceived to have changed our goals, commitments, or initiatives, or if we are perceived to have not responded appropriately to the growing concern for stakeholder interests in ESG issues, customers and consumers may choose to stop purchasing our products or purchase products from another company or a competitor, and our reputation, business, or financial condition may be adversely affected. If our ESG-related data, processes and repo

In addition, we could be criticized by shareholders, stakeholders, regulators, or other interested parting are incompletees for the scope or inaccurate,nature of our ESG initiatives or if we failgoals or for any revisions to achieve progthese goals. We have been and could continue to be subject to negative ress with respect to our goals within the scope of ESG on a timely basiponses by governmental actors (such as anti-ESG legislation or retaliatory legislative treatment) or consumers (such as boycotts or negative publicity campaigns) targeting Starbucks, or at all,which could adversely affect our reputation, business, financial performance, and growth cou.

Certain activist shareholder actions have caused, and could be adcontinue to cause, us to incur expense, hinder execution of our business strategy, and adversely affected.

In addition, we could be criticized by ESG detrimpact our stock price.

We actively engage in discussions with our shareholders regarding further strengthening our Company and creating long-term shareholder value. This ongoing dialogue can include certain divisive activist tactics, which can take many forms. Some shareholder actors for ivism, including potential proxy contests, has resulted in, and could in the scope or nature offuture result in, substantial costs, such as legal fees and expenses, and the diversion of managements and our Boards attention and resources from our ESG inbusinesses and strategic plans. Additiaonally, public shareholder actives or goals oism could give rise to perceived uncertainties as to our for any revisions to these goals. We could also be subjected to neguture, adversely affect our relationships with our customers, partners, licensees, or business partners, make it more difficult to attract and retain qualified personnel, and cause our stock price to fluctuate based on temporary or speculative respmarket perceptionses by govern or other factors that do not necessarily reflect the underlying fundamental actors (such as anti-ESG legislatis and prospects of our business. Activists or other shareholders holding a large portion of our outstanding shares will also have the ability to exert a substantial influence on or retaliaactions requiring a shareholder vote, including the election of directory legislatives, the approval of mergers, acquisitions, and other significant business treatansactions, shareholder proposals, and amendment) or conss to our governing documers (such as boycotts or negnts. These risks could adversely affect our business and operative publicity campaigns) targeting Starbucks that could adverseng results.

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.

Our policies and procedures are designed to comply affect ourwith all applicable laws, accounting and reporting reputatquirements, tax rules, and other regulation, business, financial performances and requirements, including those imposed by the SEC, Nasdaq, and foreign countries, as well as applicable trade, labor, healthcare, food and beverage, sanitation, safety, environmental, labeling, anti-bribery and growth.

Risks Recorruption, and merchandise laws. Such laws and regulated to Intellectuions are complex and often subject to differing interpretations, which can lead to unintentional Property

We may not be aor unknown instances of non-compliance. For example, changes in the enforcement priorities of regulators may also shift the impact of applicable to adequately protect our intellectual prregulations on the business and the costs necessary to ensure compliance therewith, including through an expansion in the nature, scoper, or complexity or adf matters on which we are requatelyired to report. Changes in applicable ensure that we are not infringingvironmental laws and regulations, including expanded or additional regulations and associated costs to limit carbon dioxide and other greenhouse gas emissions, to discourage the intellectuuse of plastic, or to limit or impose additional costs on commercial water use, may result in increased compliance costs, capital property of otherexpenditures, incremental investments, and other financial obligations for us and our business partners, which could harm the valueaffect our profitability. Other examples of our braemerging and potentially relevant requirements are import tariffs and and orestrictions grounded in, among other things, alleged human rights abuses.

In addition, our business.

Our bra is subject to complex and rapidly evolving U.S. and international laws and regulations regarding data privacy and names, trademarks and related intelldata protection, and companies are under increased regulatory scrutiny relating to these matters. The Federal Trade Commission and many state attorneys general are also interpreting federal and state consumer protection laws to impose standards for the online collectual property rightion, use, dissemination, and security of data. The interpretation and application of existing laws and regulations regarding data privacy and data protection are in flux, and authorities are criticound the world are considering a number of additional assets,legislative and regulatory proposals in this area. Current and future data privacy and data protection laws and our success depends on our continuedregulations (including the General Data Protection Regulation and the California Consumer Privacy Act, discussed in more detail in this risk factors section, and other applicable international and U.S. privacy laws), or new interpretations of existing laws and regulations, may limit our ability too collect and use our existdata, require us to otherwise modify our data processing trademarkpractices and service marks in order to incpolicies, or result in the possibility of fines, litigation, or orders, which may have an adverse effect on our business and

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reassults of operations. The brurdens imposed by these and awarenessother laws and regulations that may be enacted, or new interpretations of existing and further developture laws and regulations, may also require us to incur substantial costs in reaching compliance in a manner adverse to our brandedusiness.

Certain jurisdictions in which our products in both domesare sold have imposed, or are considering imposing, new or increased taxes on the manufacture, distribution, or sale of some of our products, partic and international markets. We reularly our beverages, as a result of ingredients contained in our products. These taxes vary in scope and form: some apply to all beverages, including non-caloric beverages, while others apply only to beverages with a caloric sweetener (e.g., sugar). Similarly, some measures apply on aa single tax rate per ounce/liter on beverages combinationntaining over a certain amount of trademarks, copyrights, service marks, trade secrets, patentadded sugar (or other sweetener), some apply a progressive tax rate depending upon the amount of added sugar (or other sweetener) in the beverage, and others apply a flat tax rate on beverages containing any amount of added sugar (or other sweetener). For example, in the Netherlands, a consumption tax is and other intellectual property rights to protect opplicable on cold non-alcoholic beverages (non-milk based) at a flat tax rate of 26.13 Euro per 100 Liters. In addition to the taxes on the beverages (or components thereof), we also notice a regional increase in the adoption of environmentally focused taxes, including, for example, plastic packaging tax to encourage companies to increase usage of sustainable packaging options. 

These tax measures, whatever their scope or form, have adversely impacted, and could continue to impact our brusiness and and branded prfinancial performance by increasing the cost of certain of our products, reducing overall consumption of our products.

We ha, or leading to negative registered certain trademarkspublicity.

Finally, the Organization for Economic Cooperation and Development has released guidance establishing a 15% global minimum tax applied on a country-by-country basis for multinational entities under Pillar Two of its Base Erosion and have other trademark registrations pending iProfit Shifting initiative. As of September 29, 2024, certain countries in which we operate have enacted legislation to adopt Pillar Two effective for fiscal years beginning on or after December 31, 2023, and other countries in which we operate are expected to introduce similar legislation the U.S. and certain foreign jurisdictiono implement Pillar Two. This global minimum tax will not be effective for the Company until fiscal 2025, and it is not expected to result in a material impact to our consolidated financial statements. The trademarksWe will continue to monitor regulatory developments with respect to that we curris initiative for potential impacts.

The complexity of the regulatory environmently use have not been registered in all of the countries outside of in which we operate and the related costs of compliance are both increasing due to additional or changing legal and regulatory requirements, our ongoing expansion into new markets and new channels, and the fact that foreign laws occasionally conflict with domestic laws. In addition to potential damage to our reputation and brand, failure by us or our business partners to comply with the various applicable laws and regulations, as well as changes in laws and regulations or the U.S.manner in which we do businessthey are interpreted or applied, may do bus result in litigation, civil and criminal liability, damages, finess and penalties, in the futurecreased cost of regulatory compliance, and may nerestatements of our financial statements, all of which could have an adver be registered in all ofse impact on our business and financial results.

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

We have been, and in the future may be costly, subject to litigation and time consuming to protect our intellectualother legal proceedings that may adversely affect our business. These legal proceedings may involve claims brought by store partners, customers, government agencies, suppliers, shareholders, or others through property, and ivate actions, administrative proceedings, regulatory actions, or othe steps we have taken to prr litigation, including litigation on a class or collective basis on behalf of what can be a large group of potect our intential claimants. These legal proceedings have involved, and in the future may involve, allectual propertygations of illegal, unfair, or inconsistent employment practices, including the U.S. aose governing wage and foreign countries may not be adequate. In addihour, employment of minors, discrimination, harassment, wrongful termination, and vacation and family leave laws; food-safety issues including food-borne illness, food contamination, the steps we have taken may not adequately ensure that we do notand adverse health effects from consumption of our food products; data security or privacy breaches; customer discrimination; personal injury in our stores; marketing and advertising claims, including claims that our environmental and social program claims are misleading or inaccurate; infringe thement of patent, copyright, or other intellectual property rights; violation of others, and third the federal securities laws; workers compensation; or other concerns. We are parties may claim infringemey to a number of pending lawsuits and governmental audits alleging violations of federal and state employment laws, including wage and hour claims, and we could be involved in similar or even more significant by ulitigation and legal proceedings in the future. Any claim of infringemEven if the allegations against us in current, whether or future legal matters are unfounded or we ultimately are held not it haliable, the costs to defend ourselves meriay be significant, could be time-consuming, result in costly litigatand the litigation may subject us to substantial settlements, fines, penalties, or judgments against us and may divert managements attention and harmway from operating our business. In ad, all of which could negatively impact our financial condition, we cannot ensure that  and results of operations. Litigation also may generate negative publicensees will ity, regardless of whether the allegations are valid or we ultimately are not take liable, which could damage our reputation and adversely impact our sales as well as our relations that advhips with our store partners and customers. See Note 16, Commitmely affectnts and Contingencies, to the value consolidated financial statements included in Item 8 of ouPart II of this 10-K for intellectuformation regarding certain legal property. ceedings in which we are involved.

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Risks Related to Cybersecurity and Data Privacy

Failure to maintain satisfactory compliance with certain privacy and data protections laws and regulations may subject us to result in substantial negative financial consequences, reputational harm, and civil or criminal penalties.

Complex local, state, national, foreign, and international laws and regulations apply to the collection, use, retention, protection, disclosure, transfer, and other processing of personal data. These privacy and data protection laws and regulations are quickly evolving, with new or modified laws and regulations proposed and implemented frequently and existing laws and regulations subject to new or different interpretations and eincreased enforcement and litigation. In addition, our legal and regulatory obligations in jurisdictions outside the U.S. are subject to unexpected changes, including the potential for regulatory or other governmental entities to enact new or additional laws or regulations, to issue rulings that invalidate prior laws or regulations, or to increase penalties significantly. Complying with these laws and regulations can be costly and can impede the development and offering of new products and services.

For example, Europes General Data Protection Regulation (GDPR) and the U.K. General Data Protection Regulation (which implements the GDPR into U.K. law), impose stringent data protection requirements and provide for significant penalties for noncompliance. In China, the Personal Information Protection Law (PIPL), has establishedpersonal information processing rules, data subject rights, and obligations for personal information processors, among other things. In addition to the PIPL, Chinas Data Security Law, regulates data processing activities associated with personal and non-personal data. Noncompliance with these laws may result in significant civil and criminal penalties. Other newly enacted and proposed privacy and data protection laws in other jurisdictions served by Starbucks and its licensees may impose similar requirements, including

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restrictions on cross-border data transfers and stringent safeguards on personal and non-personal data. Such laws may impact Starbucksour business operations and increase the cost and expense of compliance.

In the United States, the California Consumer Privacy Act (CCPA) requires, among other things, covered companies to provide new disclosures to California consumers and allows such consumers new abilities to exercise certain rights in connection with their personal information, such as the right to opt-out of certain sales of personal information. The CCPA also provides for civil penalties for violations as well as a private right of action for data breaches that may increase data breach litigation. Further, the California Privacy Rights Act, which became effective in January 2023, significantly modified the CCPA andto includes additional compliance obligations. Colorado, Connecticut and Virginia recentlySince the CCPA was first passed, 19 other states have enacted similar data privacy legislation that has also gone into effect in 2023, and a new privacy law, eight of which are in Utah will go into effect ats of the end of 20234. In addition, a number of other states have passed or are considering additional privacy laws that are e, including laws on health data and biometric data that are in effect, or are expected to take effect in the near future. These state privacy laws will require us to incur additional costs and expenses in our efforts to comply.

Privacy and data protection laws, such as those referenced above, may impact Starbucks operations and new business models, such as Starbucks Digital Solutions, which rely on Starbucks functioning as controller of customer personal information in licensed markets. As such, Starbucks may be primarily responsible for compliance with privacy and data protection laws in the markets served by participating licensees.

Our failure to comply with applicable laws and regulations or other obligations to which we may be subject relating to personal data, or to protect personal data from unauthorized access, use, or other processing, could result in enforcement actions and regulatory investigations against us, claims for damages by customers and other affected individuals, or parties, or fines and damage to our brand reputation, any of which could have a material adverse effect on our operations, financial performance, and business. The amount and scope of insurance we maintain may not cover all types of claims that may arise.

The unauthorized access, use, theft, or destruction of customer or employee data (personal, financial, or other data), or of Starbucks proprietary or confidential information that is stored in our information systems or by third parties on our behalf, could impact our reputation and brand and expose us to potential liability and loss of revenues.

Many of our information technology systems (whether cloud-based or hosted in proprietary servers), including those used for our point-of-sale, web and mobile platforms, online and mobile payment systems, delivery services and , rewards programs, and administrative functions, contain personal, financial, or other information that is entrusted to us by our customers, business partners, and employees. Many of our information technology systems also contain Starbucks proprietary and other confidential information related to our business, such as business plans and product development initiatives and designs, and confidential information about third parties, such as licensees and business partners. Similar to many other retail companies and because of the prominence of our brand, we have in the past experienced, and we expect to continue to experience, cyber-attacks, including phishing, and other attempts to breach, or gain unauthorized access to, our systems and databases. To date, these attacks have not had a material impact on our operations, but we cannot provide assurance that they will not have an impact in the future. Our third-party providers and business partners information technology systems and databases are likewise subject to such risks. The number and frequency of these attempts varies from year to year but could be exacerbated to some extent by an increase in ourand increases as the scale and scope of our technology footprint and digital operations increases. In addition,  to conduct our business, we provide some customer and employee data, as well as Starbucks proprietary information and other confidential information important to our business, to third parties to conduct our businesss, including licensees and business partners. Individuals performing work for Starbucks and such third parties also may access

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some of this data, including on personally-owned digital devices. To the extent we, a third party, or such an individual were to experience a breach of our or their information technology systems that results in the unauthorized access, theft, use, destruction or other compromises of customers or employees data or confidential information of the Company stored in or transmitted through such systems, including through cyber-attacks or other external or internal methods, it could result in a material loss of revenues from the potential adverse impact to our reputation and brand, a decrease in our ability to retain customers or attract new ones, the imposition of potentially significant costs (including loss of data or payment for recovery of data) and liabilities, loss of business, loss of business partners and licensees, and the disruption to our supply chain, business, and plans. Unauthorized access, theft, use, destruction, or other compromises are becoming increasingly sophisticated and may occur through a variety of methods, including attacks using malicious code, vulnerabilities in software, hardware, or other infrastructure (including systems used by our supply chain), system misconfigurations, phishing or , deepfakes, ransomware, malware, or social engineering. The rapid evolution and increased adoption of artificial intelligence technologies may intensify our cybersecurity risks. Our logging capabilities, or the logging capabilities of third parties, are not always complete or sufficiently granular, affecting our ability to fully understand the scope of security breaches.

Such security breaches also could result in a violation of applicable U.S. and international privacy, cyber, and other laws or trigger data breach notification laws, including new disclosure rules promulgated by the SEC, and subject us to private consumer, business partner or licensee, or securities litigation and governmental investigations and proceedings, any of which could result in our exposure to material civil or criminal liability. These risks also exist in acquired businesses, joint ventures, or companies we invest in or partner with that use separate information systems or that have not yet been fully integrated into our information systems.

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Significant capital investments and other expenditures could also be required to investigate security incidents, remedy cybersecurity problems, recuperate lost data, prevent future compromises, and adapt systems and practices to react to the changing threat environment. These include costs associated with notifying affected individuals and other agencies, additional security technologies, trainings, personnel, experts, and credit monitoring services for those whose data has been breached. These costs, which could be material, could adversely impact our results of operations in the period in which they are incurred, including by interfering with the pursuit of other important business strategies and initiatives, and may not meaningfully limit the success of future attempts to breach our information technology systems.

Media or other reports of existing or perceived security vulnerabilities in our systems, or those of our third-party business partners or service providers, can also adversely impact our brand and reputation and materially impact our business. Additionally, the techniques and sophistication used to conduct cyber-attacks and compromise information technology systems, as well as the sources and targets of these attacks, change frequently and are often not recognized until such attacks are launched or have been in place for a period of time. The rapid evolution and increased adoption of artificial intelligence technologies aby attackers amplifies these concerns. We continue to make significant investments in technology, third-party services, and personnel to develop and implement systems and processes that are designed to anticipate cyber-attacks and to prevent or minimize breaches of our information technology systems or data loss, but these security measures cannot provide assurance that we will be successful in preventing such breaches or data loss.

We rely heavily on information technology in our operations and growth initiatives, and any material failure, inadequacy, interruption, or security failure of that technology could harm our ability to effectively operate and grow our business and could adversely affect our financial results.

We rely heavily on information technology systems across our operations for numerous purposes, including for administrative functions, point-of-sale processing and payment in our stores and online, management of our supply chain, Starbucks Cards, online business, delivery services, mobile technology,  (including mobile payments and ordering apps), reloads and loyalty functionality, and various other processes and transactions,  (including providing Starbucks Digital Solutions to participating licensees), and many of these systems are interdependent on one another for their functionality. Many of our non-store employees continue to work on a remote or hybrid basis, which has resulted in increased demand on our information technology infrastructure. Additionally, the success of several of our initiatives to drive growth, including our ability to increase digital relationships with our customers to drive incremental traffic and spend, is highly dependent on our technology systems. Furthermore, we continue to expand convenience-led formats, which depend heavily on our mobile ordering capabilities. Any failure, inadequacy, or interruption of these systems could harm our ability to effectively operate and grow our business and could adversely affect our financial results. In addition, the technologies and artificial intelligence tools we are incorporating into certain aspects of our operations may not generate the intended efficiencies and may impact our business results.

We also rely on third-party providers and platforms for some of these information technology systems and support. Additionally, oOur systems hardware, software, and services provided by third-party service providers are not fully redundant within a market or across our markets. Our contractual and operational safeguards may not be effective in preventing the failure of these systems or platforms to operate effectively and be available. Such failures may be caused by various factors, including power outages, climate change-related impacts, catastrophic events, physical theft, computer and network failures, inadequate or ineffective redundancy, problems with transitioning to upgraded or replacement systems or platforms, flaws in third-party software or

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services, errors or improper use by our employees or third-party service providers, or a breach in the security of these systems or platforms, including through cyber-attacks such as those that result in the blockage of our or our third-party business partners or service providers systems and platforms and those discussed in more detail in this risk factors section. If our incident response, disaster recovery, and business continuity plans do not resolve these issues in an effective and timely manner, they could result in an interruption in our operations and could cause material negative impacts to our product availability and sales, the efficiency of our operations, and our financial results. In addition, remediation of any problems with our systems and related customer support could result in significant, unplanned expenses.

Risks Related to Pandemics or Epidemics

Future health epidemics or pandemics could adversely affect our business and financial results.

Health epidemics or pandemics havGiven the increasing complexity and sophistication of techniques used by bad actors to obtain unauthorized access to or disable in the pastformation technology systems, and may in the future impact macroeconomic conditions, consumer behavior, labor availability and supply chain management, as well as local oact that cyber-attacks are being made by groups and individuals with a wide range of experations in impactetise and marketotives, all of which can adverseit is increasingly affect our business, financial resultsdifficult to anticipate and outlook. Governmental responses to health epidemics or pdefend against cyber-attacks, andemics, including op a cyberational restrictions, can also affect the foregoing items tack could occur and advpersely affect our business and financial results. The duration and scopeist for an extended period of a health epidemic or pandemic can be difficult to predict and depends on many factors, including time before being detected. Moreover, the emergencextent of new variants and the availability, acceptancea particular cyber incident and effectiveness of preventativthe steps that we measures. A health epidemic or pandemic may also heighten other risks disclosed in ay need to take to investigate these risk factors, including, but incident may not limited to, those related to thbe immediately clear, and it may take availability and costs significant amount of labor and commodities,time before supply chainch interrupvestigations, consumer can behavior, finalized and consumer perceptions of our branmpleted and industry.

Risks Related to Governmental and Regulatory Changes

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Failreliable information aboure to comply with applicable laws and changt the incident is known. During legal and regulatory requirements could harm our business and financial results.

Our policies and procedures are designed to comply with all applicable laws, accounting and reporting requithe pendency of any such investigation, we may not know the extent of the harm or how best to rements, tax rules diate it, and other regulations andwe may be requirements, including those impd to disclosed by the SEC, Nasdaq and foreign countries, as well as applicable trade, labor, healthcare, food and beverage, sanitation, safety, environmental, labeling, anti-bribery and corruption and merchandise laws. Such laws and regulations are complex and often subje incidents before their full extent is known.

Risks Related to Intellectual Property

Failure to adequately protect to differingour interpretations, which can lead to unintentional or unknownllectual property or ensure that we are not instances of non-compliance. Changesfringing on the in the enforcementtellectual prioritiesoperty of regulatoothers may also shiftcould harm the impactvalue of applicable regulations on theour brand and our business .

Our brand the costs necessary to ensure compliance therewith, including through an expansionnames, trademarks, and related in the nature, scope or complexity of matters on which we tellectual property rights are required to report. Changes in applicable environmental lawscritical assets, and regulations, including increased or additional regulations and associatedour success depends on our costs to limit carbon dioxide and other greenhontinued ability to use gas emissions, to discourage the use of plastic or to limit or impose additional costs on commercial water use, may resultour existing trademarks and service marks in increased compliance costs, capital expenditures, incremental investments order to increase brand other financial obligations for uawareness and our business partners, which could affectfurther develop our profitability.

In addition, our business is subject to complex and rapidly evolving U.S. branded products in both domestic and international laws and regulations regarding data privacy and data protection, andmarkets. We rely on a companies are under increased regulatory scrutiny relating to thesebination of trademarks, copyrights, service matters. The Federal Trarks, trade Commission and many state attorneys genersecrets, patents, and other intellectual are also interpreting federalproperty rights to protect our brand and state consumerbranded protection laws to impose standards for the online collection, use, disseminationducts.

We have registered certain trademarks and security of data. The interpretation and application of exhave other trademark registing laws and regulrations regarpending data privacyin the U.S. and data protection are in flux and authorities around tcertain foreign jurisdictions. The world are considering a number of additional legislative and regulatory proposals in this area. Current and future data privacy and data protection laws and regulations (includingtrademarks that we currently use have not been registered in all of the markets outside of the GDPR and the CCPA, discussed in more detail in this risk factors section, and other applicable internationalU.S. in which we do business or may do business in the future and U.S. privacy laws), or new inmay never be registerpretationsed in all of existing laws and regulations, may limit our ability tothese markets. It may be collectstly and use data, require ustime consuming to otherwise modifyprotect our dataintellectual processing pracperty, partices and policies or resultularly in the possibility of finerapidly evolving areas, litigation or orders, which may and the steps we have an adverse efftaken to protect on our business and results of intellectual properations. The burdens imposed by these and oty in ther laws U.S. and regulations that foreign countries may not be enacted, or new interpretaadequate. In additions of existing and future laws and regulations,, the steps we have taken may also rnot adequire us to incur substantial costsately ensure that we do not in reachfring compliance the in a manner adverse to our business.

The complexitellectual property of the regulatory environment in which we operateothers, and the related costs of compliance are both increasird parties may claim infring due to additional or changing legal and regulatory requirements, our ongoing expansionement by us in the future. Any claim of into new markets and new channels and fringement, whethe fact that foreign laws occasionally conflict with domestic laws. In addition to potential damage to our reputation and brand, failure by us or our business partners to compr or not it has merit, could, particularly in rapidly with the various applicable laws and regulationevolving areas, as well as changes in laws andbe time-consuming or regulations or the manner in which they arsult in costly litigation and could have an adverse interpreted or applied, may result in lmpact on our business. In additigation, civil and criminalwe cannot ensure that liability, damages, fincensees and penalties, increased cost of regulatory compliance and restatements ofother third parties who hold licenses to our financiintellectual statements and havproperty will not take anctions that adverse impaly affect onthe value of our business and financiintellectual results.property.