Starbucks faces risks from fluctuating commodity prices (especially coffee and dairy), currency exchange rate volatility, and intense competition. Economic downturns, labor costs (including potential unionization impacts), and cybersecurity threats also pose risks. The company's reliance on the North America segment and certain international markets, particularly China, adds vulnerability. Unfavorable publicity, litigation, and regulatory changes further complicate the financial picture.
Financial Upside
Starbucks anticipates growth from new store openings, comparable store sales, and operating margin management. The company's "Back to Starbucks" strategy aims to improve customer experience and brand relevance. Acquisitions, including licensed store conversions, are also potential drivers of future revenue. The company plans to maintain a disciplined capital allocation strategy.
