Wingstop saw its sales drop as company blames Iran war and high gas prices for customer decrease

The CEO of Wingstop, a popular chicken wing fast-food restaurant, has blamed rising gas prices caused by the war in Iran on a drop in its sales.

Michael Skipworth, the company's CEO, made the comments during the chain's first-quarter earnings call on Wednesday. He said that a drop in visits from lower-income customers paired with some temporary store closures due to winter weather contributed to an 8.7 percent decline in same-restaurant sales during its first quarter.

He noted that the company experienced a similar pull-back amongst its lower-income customer base in 2022 after Russia invaded Ukraine, Restaurant Dive reports. The invasion triggered a spike in gas prices.

Gas prices since the outbreak of the Iran war have hit a new record high, with the average price per gallon in the U.S. costing consumers nearly $4.30, according to AAA.

It's not all bad news for Wingstop. Skipworth said the decline in sales was offset by a 17 percent year-over-year increase in the number of stores it operates.

In late November 2025, Wingstop opened its 3,000th location. It has opened 97 net new locations since the first quarter 2025, according to a Market Chameleon analysis.

Skipworth said during the call that he expects consumer trends to return to normal fairly quickly. The decline in sales is the fourth consecutive drop for the chain's same-store sales.

Rather than discounting its current offerings, Skipworth said the company plans to highlight its sandwich and chicken tender combo offerings which are priced under $10.

A decline in visits from lower-income customers is especially difficult for Wingstop. The company's Chief Financial Officer, Alex Kaleida, said that demographic accounts for approximately 25 percent of the chain's transactions.

He said that rather than looking for cheaper options, lower-income customers are choosing to spend their money on items that offer larger portions, according to Restaurant Dive.

“They’re actually trading up into larger bundles. We’ve seen the ticket increase, but the items that they’re attaching per ticket has changed, that’s come down a little bit,” Kaleida said. “So they’re almost kind of looking for that abundance quality.”

The CFO said that the company is also rolling out a new loyalty program later this year called Club Wingstop in an effort to encourage repeat visits.

He said the company has seen some success in retaining lower-income customers through its testing of the loyalty program.

“Among low-income consumers in our market where we’re testing loyalty, their engagement, their frequency, has been sustaining,” he said.

On Thursday, President Donald Trump told reporters that gas prices will "drop like a rock" when the war in Iran ends, according to Reuters.

There's no indication that the conflict will conclude anytime soon.