US EditionUS Restaurant Sales Drop as Iran War Pushes Gasoline Prices Higher
Higher pump prices are pushing customers to cut back, and analysts say a $1 gasoline increase can cost a drive-through about six daily orders.
- U.S. restaurant chains including Wingstop and Domino's reported weaker-than-expected sales as soaring fuel costs tied to the US-Israeli war on Iran forced customers to cut spending, erasing more than $40 billion in market value.
- Average U.S. gasoline prices reached $4.43, a nearly 40% increase since last year, according to GasBuddy. Sebastien Fernandez, chief analyst at U.S.-based restaurant consulting firm Revenue Management Solutions, identified the $4 mark as a tipping point where impact doubles.
- Wingstop CEO Michael Skipworth told investors Wednesday to expect shrinking sales, calling the situation "extremely difficult for anyone to predict this macro environment" as higher pump prices contributed to an 8.7% plunge in quarterly same-store sales.
- Domino's CEO Russell Weiner noted competitors' promotions contributed to his chain's weaker-than-expected 0.9% growth, while Starbucks reported 7.1% sales growth, potentially benefiting from the gloomy consumer outlook.
- Investors await McDonald's earnings report on May 7 as many analysts do not expect consumers to feel relief anytime soon, given the US-Israeli war's continued disruption of global oil supplies.
23 Articles
23 Articles
Gas prices surge as Iran war hits U.S. restaurant spending | Honolulu Star-Advertiser
Several U.S. restaurant chains, including Wingstop and Domino’s, reported weaker-than-expected sales growth in the latest quarter, saying that soaring gasoline prices caused by the U.S.-Israeli war on Iran have forced their customers to cut back on other spending.
US restaurant sales fall as Iran war drives up gas prices
With pain at the gas pump reaching new highs due to U.S.-Iran tensions, many consumers are pulling back on dining out. Major restaurant brands report falling revenue as households pivot to cost-saving measures to offset rising daily expenses.
Iran war fuel costs squeeze US restaurant chains as customers cut back on eating out
NEW YORK, May 4: Soaring gasoline prices driven by the US-Israeli war on Iran are forcing American consumers to pull back on restaurant spending, delivering a painful blow to the food service industry and pushing analysts to slash profit forecasts for chains across the sector. Several major restaurant companies reported weaker-than-expected sales growth in their most recent quarterly earnings, with executives pointing directly to elevated fuel c…
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