Starbucks 2009 Annual Report Download - page 16

are filed with or furnished to the SEC. The Company’s corporate governance policies, code of ethics and Board
committee charters and policies are also posted on the Investor Relations section of Starbucks website at
http://investor.starbucks.com. The information on the Company’s website is not part of this or any other report
Starbucks files with, or furnishes to, the SEC.
Item 1A. Risk Factors
Starbucks is including this Cautionary Statement to make applicable and take advantage of the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995 (the “Act”) for forward-looking statements. This
10-K includes forward-looking statements within the meaning of the Act. Forward-looking statements can be
identified by the fact that they do not relate strictly to historical or current facts. They often include words such as
“believes,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “seeks” or words of similar meaning, or future
or conditional verbs, such as “will,” “should,” “could,” “may,” “aims,” “intends,” or “projects.” A forward-looking
statement is neither a prediction nor a guarantee of future events or circumstances, and those future events or
circumstances may not occur. Investors should not place undue reliance on the forward-looking statements, which
speak only as of the date of this Report. These forward-looking statements are all based on currently available
operating, financial and competitive information and are subject to various risks and uncertainties. The Company’s
actual future results and trends may differ materially depending on a variety of factors, including, but not limited to,
the risks and uncertainties discussed below.
If any of the risks and uncertainties described in the cautionary factors described below actually occurs, Starbucks
business, financial condition and results of operations could be materially and adversely affected. The factors listed
below are not exhaustive. Other sections of this 10-K include additional factors that could materially and adversely
impact Starbucks business, financial condition and results of operations. Moreover, Starbucks operates in a very
competitive and rapidly changing environment. New factors emerge from time to time and it is not possible for
management to predict the impact of all these factors on Starbucks business, financial condition or results of
operation or the extent to which any factor, or combination of factors, may cause actual results to differ materially
from those contained in any forward-looking statements. Given these risks and uncertainties, investors should not
rely on forward-looking statements as a prediction of actual results. Any or all of the forward-looking statements
contained in this 10-K and any other public statement made by Starbucks or its management may turn out to be
incorrect. Starbucks expressly disclaims any obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise.
•Starbucks financial condition and results of operations are sensitive to, and may be adversely affected by,
a number of factors, many of which are largely outside the Company’s control.
The Company’s operating results have been in the past and will continue to be subject to a number of factors, many
of which are largely outside the Company’s control. Any one or more of the factors set forth below could adversely
impact Starbucks business, financial condition and/or results of operations:
• lower customer traffic or average value per transaction, which negatively impacts comparable store sales, net
revenues, operating income, operating margins and earnings per share, due to:
• the impact of initiatives by competitors and increased competition generally;
• customers trading down to lower priced products within Starbucks, and/or shifting to competitors with
lower priced products;
• lack of customer acceptance of new products or price increases necessary to cover costs of new products
and/or higher input costs;
• unfavorable general economic conditions in the markets in which Starbucks operates that adversely affect
consumer spending;
• declines in general consumer demand for specialty coffee products; or
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