Tesla, Ford, and Starbucks all missed fourth-quarter earnings estimates as high fixed costs and lingering inflation squeezed margins. Only 56% of S&P 500 consumer discretionary companies beat GAAP estimates, the lowest since Q1 2020, per Bloomberg Intelligence—a stark contrast to the broader index’s 73% beat rate. Analysts blame “choiceful” consumers delaying big-ticket purchases amid elevated prices and financing costs. Chipotle CFO Adam Rymer warned 2026 margins will face pressure after avoiding price hikes matching inflation, while O’Reilly Automotive CEO Brad Beckham noted weaker demand for “highly discretionary” auto accessories. Lowe’s and Home Depot cited housing market volatility and mortgage rate concerns dampening home-related spending.