Wingstop's CEO, Michael Skipworth, attributed an 8.7 percent decline in first-quarter same-restaurant sales to rising gas prices caused by the war in Iran.
The company noted a similar reduction in visits from lower-income customers in 2022 following Russia's invasion of Ukraine, which also led to a spike in petrol costs.
Gas prices in the US have reached a new record high of nearly $4.30 per gallon since the outbreak of the Iran conflict.
Wingstop's Chief Financial Officer, Alex Kaleida, stated that lower-income customers, who represent 25 percent of transactions, are opting for larger portions elsewhere rather than cheaper options.
To counter the sales decline, Wingstop plans to promote sub-$10 sandwich and chicken tender combos and will launch a new loyalty program, Club Wingstop, later this year.
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Wingstop saw its sales drop as company blames Iran war and high gas prices for customer decrease
