FILE-A waiter carries a tray of food upstairs to patrons, while others wait to be seated for brunch at a restaurant. (Photo By Carl D. Walsh/ Staff Photographer/Getty Images)
Restaurants are experiencing declining sales as consumers are becoming more conservative with their overall spending as the ongoing U.S. conflict with Iran is driving up gas prices.
Reuters reported that some major restaurant chains like Wingstop and Domino's reported lower than projected sales and other restaurants may be affected.
Restaurant sales slumping amid Iran war
Dig deeper:
Wingstop shared with Reuters that soaring gas prices played a role in an 8.7% plummeting in quarterly same-store sales. CEO Michael Skipworth told investors on April 29 that they should expect declining sales this year in part, based on projections that gas prices will continue to be expensive.
Citing London Stock Exchange Group (LSEG) averages, Reuters noted that financial analysts project other restaurant chains to endure slow sales growth in upcoming earnings, including Shake Shack and Jack in the Box.
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Additionally, Chipotle, which listed better-than-expected same-store sales growth of 0.5%, provided an outlook of flat growth over the year, which Chief Financial Officer Adam Rymer associated partially to skepticism over the Iran war and gas prices.
Last week, Yum Brands' Taco Bell, which began a value meal starting at $3 in January, reported 8% quarterly same-store sales growth in its U.S. restaurants.
Domino's CEO Russell Weiner told investors on April 28 that his restaurant chain's competitors marketed promotions like Domino's, partly contributing to the chain's weaker-than-expected 0.9% U.S. same-store sales growth. Meanwhile, Starbucks reported 7.1% quarterly same-store sales growth in the U.S. on April 28.
What are the current gas prices in the U.S.?
By the numbers:
The average price of gas jumped to $4.46 per gallon on Monday, up from an average of $4.11 one week ago on April 27, according to AAA.
As of Monday, California has the highest gas prices in the United States with an average of $6.11 per gallon.
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Since the U.S.-Israeli war on Iran in February, has created a substantial disruption to global oil supplies, leading to skyrocketing gas prices nationwide.
The American Petroleum Institute stated in a post on its website that "gasoline prices reflect costs across the fuel supply chain − from crude oil production to refining, distribution and retail sales."
The Source: Information for this story was provided by Reuters, AAA, and the American Petroleum Institute. This story was reported from Washington, D.C.