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This marked the beginning of what could be a concerning trend: 2024 might be the first year in over 30 years that Domino's does not see consistent same-store sales growth. Following the earnings announcement, Domino's stock experienced a sharp decline, losing approximately 60% of its value shortly after market opening, effectively erasing a year’s worth of gains.
The Broader Economic Context
The situation at Domino's highlights a larger economic landscape in which households are experiencing a decline in disposable income. The median household income in the U.S. fell from approximately $78,000 before the onset of the COVID-19 pandemic to around $74,000 now. As prices for everyday goods continue to rise, many consumers are tightening their budgets, leading to changes in spending habits.