Wingstop experienced a decline in sales during the first quarter of 2026, with the company's CEO attributing the drop to the ongoing war in Iran and soaring gas prices. Michael Skipworth, chief executive of the popular chicken wing chain, made these remarks during the company's first-quarter earnings call on Wednesday.
Sales Decline and Contributing Factors
Skipworth stated that a reduction in visits from lower-income customers, combined with temporary store closures due to winter weather, led to an 8.7 percent decrease in same-restaurant sales for the quarter. He drew parallels to a similar pullback among lower-income patrons in 2022 following Russia's invasion of Ukraine, which also triggered a spike in fuel costs.
According to AAA, the average price per gallon of gasoline in the United States has reached nearly $4.30, a record high since the outbreak of the Iran war. This financial strain is causing many Americans to curb their spending on fast food, impacting chains like Wingstop.
Offsetting Factors and Expansion
Despite the sales dip, Skipworth noted that the decline was partially offset by a 17 percent year-over-year increase in the number of operating stores. Wingstop opened its 3,000th location in late November 2025 and has added 97 net new locations since the first quarter of 2025, according to a Market Chameleon analysis.
Skipworth expressed optimism that consumer trends would return to normal relatively quickly. The sales drop marks the fourth consecutive quarterly decline in same-store sales for the chain.
Strategy and Loyalty Program
Rather than discounting existing menu items, the company plans to promote its sandwich and chicken tender combo offerings, which are priced under $10. The decline in visits from lower-income customers is particularly challenging for Wingstop, as Chief Financial Officer Alex Kaleida revealed that this demographic accounts for approximately 25 percent of the chain's transactions.
Kaleida observed that lower-income customers are not necessarily seeking cheaper options but are instead opting for larger portions. "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," he said. "So they're almost kind of looking for that abundance quality."
To encourage repeat visits, Wingstop is rolling out a new loyalty program later this year called Club Wingstop. Kaleida noted that testing of the program has shown success in retaining lower-income customers, with sustained engagement and frequency among that group in test markets.
Broader Context
On Thursday, President Donald Trump told reporters that gas prices will "drop like a rock" once the conflict in Iran concludes, according to Reuters. However, there is no indication that the war will end in the near future.
