During the final week of July 2021, shares of coffee giant (NASDAQ: SBUX) hit all-time highs above $126 per share. It's down about 40% from this all-time high almost exactly three years later because investors are concerned about some real problems with the business.

It's important to not overstate the gravity of the situation for Starbucks. At the end of the day, the company has 39,000 locations worldwide, has generated over $36 billion in trailing-12-month revenue, and earned more than $4 billion in net income in the last year. Most companies would love to have this "problem" business.

Starbucks is a hugely successful business but is not living up to its full potential right now -- which is what's bothering investors. In the fiscal second quarter of 2024 (which ended in March), sales transactions slipped 6% year over year. And things were slightly worse in key North American markets, with comparable transactions falling 7%.

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Source Fool.com