Risk Factors Update Summary

• Our North America operating segment generated approximately 75% of consolidated total net revenues in fiscal year 2024. A decline could significantly impact our financial results.
• The complexity of cyber-attacks is increasing, making it harder to defend against unauthorized access. This change might result in significant financial losses if a cyber incident occurs.
• The minimum salary threshold for exempt employees will increase effective July 1, 2024, impacting labor costs significantly.
• A widespread Starbucks product recall could result in significant losses due to costs, destruction of inventory, and lost sales, materially harming our business.
• The company acknowledges that health epidemics or pandemics can adversely affect business operations and financial results. This change highlights potential risks to profitability during extended health crises.
• Climate change may lead to increased coffee prices, as extreme weather conditions have historically affected supply.
• We may not successfully implement strategic initiatives, which could adversely impact our business and financial results, ultimately affecting shareholder value.
• The company may incur significant, unplanned expenses due to inadequate incident response and disaster recovery plans. This change emphasizes the financial impact of operational disruptions.
• New privacy laws in multiple states, including California and Virginia, will require additional compliance costs and operational adjustments.
• Increased costs of high-quality arabica coffee beans could adversely impact our business operations and financial results, affecting profitability.
• The global minimum tax of 15% under Pillar Two will be effective for fiscal years starting after December 31, 2023, impacting financial strategies.
• Negative publicity from food safety incidents, even if unfounded, could materially harm our sales and brand reputation, impacting overall financial performance.
• Increased scrutiny on ESG matters may lead to higher compliance costs and potential reputational risks for the company.