What caused SBUX's earnings to miss forecasts in Q2 2024?

Starbucks' earnings missed forecasts in Q2 2024 due to a combination of factors: 1. **Revenue Decline**: Total revenue decreased by 2% year-over-year to $8.6 billion, falling short of the estimated $9.13 billion. This decline was primarily driven by a 4% decrease in global comparable store sales, with significant drops in China and international markets. 2. **Comparable Store Sales**: Global comparable store sales declined 4%, primarily due to a 6% decrease in comparable transactions. This was partially offset by a 2% increase in average ticket sizes. Notably, North America saw a 3% decline, while China experienced a more significant 11% drop. 3. **Average Ticket Sales and Transaction Volumes**: There was a notable decrease in transaction volumes, which fell by 6%. Although average ticket sales increased by 2%, this was insufficient to counterbalance the negative impact of lower transactions. 4. **Operating Margin Pressure**: The GAAP operating margin contracted by 240 basis points to 12.8%, influenced by increased costs and investments in wages and benefits. The non-GAAP operating margin contracted by 150 basis points to 12.8%, reflecting challenges in cost management. 5. **Macroeconomic Pressures**: CEO Laxman Narasimhan attributed the challenges to macroeconomic pressures, particularly the impact on consumers, which influenced the occasional customer's behavior. This aligns with the broader economic challenges faced during the quarter. 6. **Market Conditions**: The company faced a "highly challenged environment" with customers tightening their spending, as evidenced by reduced frequency of visits and order sizes. This was the first quarterly sales decline since 2020, impacted by COVID-related shutdowns in the industry. In summary, Starbucks' Q2 2024 earnings miss was due to lower-than-expected revenue, primarily resulting from a decline in global comparable store sales, particularly in North America and China, coupled with operational margin challenges and macroeconomic pressures.