829224--11/24/2008--STARBUCKS

related topics

{competitive, industry, competition}

{system, service, information}

{condition, economic, financial}

{cost, operation, labor}

{acquisition, growth, future}

{loss, insurance, financial}

{operation, natural, condition}

{financial, litigation, operation}

{personnel, key, retain}

{regulation, change, law}

The Company may not be successful in implementing important new strategic initiatives, which may have a material adverse impact on its business and financial results. Starbucks is subject to a number of significant risks that might cause the Company s actual results to vary materially from its forecasts, targets, plans, or projections, including: The global economic crisis could adversely affect the Company s business and financial results and have a material adverse affect on Starbucks liquidity and capital resources. Starbucks is highly dependent on the financial performance of its United States operating segment. Starbucks may not fully realize the anticipated positive impacts to future financial results from the restructuring measures announced in July 2008. Starbucks is increasingly dependent on the success of its International operating segment in order to achieve its growth targets. Starbucks International segment is highly dependent on the financial performance of its Canada, Japan and UK markets; any significant increases in costs or significant declines in net revenues or profit contribution from one or more of these markets could have a material adverse impact on the results of operations of the International segment. Starbucks faces intense competition in the specialty coffee market. The Company s success depends substantially on the value of the Starbucks brand. The loss of key personnel or difficulties recruiting and retaining qualified personnel could jeopardize the Company s ability to meet its financial targets. The Company s business depends in large part on the success of its business partners and suppliers, and the Company s brand and reputation may be harmed by actions taken by third parties that are outside of the Company s control. Effectively managing the Company s growth is challenging. Adverse public or medical opinions about the health effects of consuming the Company s products, as well as reports of incidents involving food-borne illnesses or food tampering, whether or not accurate, could harm its business. A regional or global health pandemic could severely affect Starbucks business. Increased leverage and/or increases in interest rates may harm the Company s financial condition and results of operations. Starbucks relies heavily on information technology in its operations, and any material failure, inadequacy, interruption or security failure of that technology could harm the Company s ability to effectively operate its business. Failure of the Company to comply with applicable laws and regulations could harm its business and financial results.

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829224--11/24/2008--STARBUCKS_CORP