Baskin Robbins 2013 Annual Report Download - page 30

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personnel or attract additional qualified management personnel to replace executives who retire or resign. Failure to retain our
leadership team and attract and retain other important personnel could lead to ineffective management and operations, which
could materially and adversely affect our business and operating results.
Unforeseen weather or other events may disrupt our business.
Unforeseen events, including war, terrorism, and other international, regional, or local instability or conflicts (including labor
issues), embargos, public health issues (including tainted food, food-borne illnesses, food tampering, or water supply or
widespread/pandemic illness such as the avian or H1N1 flu), and natural disasters such as earthquakes, tsunamis, hurricanes, or
other adverse weather and climate conditions, whether occurring in the U.S. or abroad, could disrupt our operations or that of
our franchisees or suppliers; or result in political or economic instability. These events could reduce traffic in our restaurants
and demand for our products; make it difficult or impossible for our franchisees to receive products from their suppliers;
disrupt or prevent our ability to perform functions at the corporate level; and/or otherwise impede our or our franchisees' ability
to continue business operations in a continuous manner consistent with the level and extent of business activities prior to the
occurrence of the unexpected event or events, which in turn may materially and adversely impact our business and operating
results.
Risks related to our common stock
Our stock price could be extremely volatile and, as a result, you may not be able to resell your shares at or above the price
you paid for them.
Since our initial public offering in July 2011, the price of our common stock, as reported by NASDAQ, has ranged from a low
of $23.24 on December 15, 2011 to a high of $50.80 on February 19, 2014. In addition, the stock market in general has been
highly volatile. As a result, the market price of our common stock is likely to be similarly volatile, and investors in our common
stock may experience a decrease, which could be substantial, in the value of their stock, including decreases unrelated to our
operating performance or prospects, and could lose part or all of their investment. The price of our common stock could be
subject to wide fluctuations in response to a number of factors, including those described elsewhere in this report and others
such as:
• variations in our operating performance and the performance of our competitors;
• actual or anticipated fluctuations in our quarterly or annual operating results;
• publication of research reports by securities analysts about us, our competitors, or our industry;
• our failure or the failure of our competitors to meet analysts' projections or guidance that we or our competitors may
give to the market;
• additions and departures of key personnel;
• strategic decisions by us or our competitors, such as acquisitions, divestitures, spin-offs, joint ventures, strategic
investments, or changes in business strategy;
• the passage of legislation or other regulatory developments affecting us or our industry;
• speculation in the press or investment community;
• changes in accounting principles;
• terrorist acts, acts of war, or periods of widespread civil unrest;
• natural disasters and other calamities; and
• changes in general market and economic conditions.
As we operate in a single industry, we are especially vulnerable to these factors to the extent that they affect our industry, our
products, or to a lesser extent our markets. In the past, securities class action litigation has often been initiated against
companies following periods of volatility in their stock price. This type of litigation could result in substantial costs and divert
our management's attention and resources, and could also require us to make substantial payments to satisfy judgments or to
settle litigation.