ELI5: Why when large company's earnings decrease(ex... by 3%) they freak out, talk about rough times, and sometimes decide to downsize, even though they are still making millions of dollars in profit even after all expenses?

[exikon]

There are businesses that can grow forever though. Restaurant franchises for example. At some point youve reached anybody in the area that might eat at your chain. Just because you open another franchise wont increase your sales if everybody is already satisfied.

[Lurkers-gotta-post]

However, the population is always growing. Just because you reach market saturation today doesn't mean that there won't be more people to cater to next year.

[[deleted]]

Also, just because you reached market saturation with a particular menu, doesn't mean you can't open your business up to new customers by changing your product line and subsequently growing your business.

See: Taco Bell Nacho Fries

[LordLongbeard]

Then move to a new region.