829224--11/29/2007--STARBUCKS

related topics

{competitive, industry, competition}

{system, service, information}

{stock, price, operating}

{condition, economic, financial}

{operation, natural, condition}

{financial, litigation, operation}

{personnel, key, retain}

{control, financial, internal}

{operation, international, foreign}

{loss, insurance, financial}

{acquisition, growth, future}

Failing to meet market expectations for Starbucks financial performance could cause the market price of Starbucks stock to drop rapidly and sharply. Starbucks is subject to a number of significant risks that might cause the Company s actual results to vary materially from its forecasts, targets, or projections, including: Starbucks is highly dependent on the financial performance of its United States operating segment. Starbucks faces intense competition in the specialty coffee market. The Company s success depends substantially on the value of the Starbucks brand. Starbucks is increasingly dependent on the success of its International operating segment in order to achieve its growth targets. The China market is important to the Company s long-term growth prospects - doing business there and in other developing countries can be challenging. The Company s earnings and business growth strategy depends in large part on the success of its business partners and suppliers, and the Company s reputation may be harmed by actions taken by third parties that are outside of the Company s control. Effectively managing the Company s rapid growth is challenging. The loss of key personnel or difficulties recruiting and retaining qualified personnel could jeopardize the Company s ability to meet its growth targets. 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. Significant increases in the market price or decreases in availability of high quality arabica coffee or fluid milk could harm the Company s business and financial results. A regional or global health pandemic could severely affect Starbucks business. 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 s internal control over financial reporting could harm its business and financial results.

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829224--11/29/2007--STARBUCKS_CORP