The chief executive of Wingstop, Michael Skipworth, has attributed an 8.7 percent decline in the chain's same-restaurant sales during the first quarter to rising petrol prices linked to the war in Iran. Speaking during the company's first-quarter earnings call on Wednesday, Skipworth said lower-income customers had reduced visits, while temporary store closures due to winter weather also contributed to the drop.
Skipworth noted a similar pull-back among lower-income customers in 2022 following Russia's invasion of Ukraine, which triggered a spike in petrol prices. According to AAA, the average price per gallon in the US has reached nearly $4.30, a new record high since the outbreak of the Iran conflict.
Despite the sales decline, Wingstop saw a 17 percent year-over-year increase in the number of stores it operates. The chain opened its 3,000th location in late November 2025 and has added 97 net new locations since the first quarter of 2025. Skipworth said he expects consumer trends to return to normal quickly, although the drop marks the fourth consecutive quarterly decline in same-store sales.
Rather than discounting current offerings, the company plans to highlight its sandwich and chicken tender combos priced under $10. Chief Financial Officer Alex Kaleida said lower-income customers, who account for about 25 percent of transactions, are trading up to larger bundles rather than seeking cheaper options. The company is also rolling out a new loyalty programme called Club Wingstop later this year to encourage repeat visits.
On Thursday, President Donald Trump told reporters that petrol prices will 'drop like a rock' when the war in Iran ends, but there is no indication the conflict will conclude soon.
