Starbucks stock plunges 14% after badly missing its Q2 earnings estimates

Starbucks faced a significant downturn, with its stock plunging 14% after missing Q2 earnings estimates. The company reported lower-than-expected revenue, earnings, and same-store sales, attributing the decline to reduced customer visits and spending. This marks Starbucks' first quarterly sales decline since the COVID-19 disruptions in 2020.

CEO Laxman Narasimhan highlighted the challenges from macroeconomic pressures affecting consumer behavior, particularly occasional customers. Despite efforts to attract more patrons with new products and promotions, overall performance was weak globally, with notable declines in the U.S. and China. Starbucks has revised its 2024 outlook downwards, expecting only low-single-digit revenue growth and a potential decline in same-store sales.