32% Surge in US Gas Prices Cuts Fast-Food Sales, Wendy’s Shares Drop 10%
US gas prices surged 32% from $2.98 to $3.90 per gallon since late February as crude topped $100 per barrel following a near-total closure of the Strait of Hormuz that cut 20% of global oil supply. The fuel shock drove weekly fast-food sales lower in March, with Wendy’s shares falling 10% over the past month.
1. Gas Price Surge and Supply Disruption
Since late February, the US national average for gasoline has jumped from $2.98 to $3.90 per gallon, a 32% increase, driven by crude oil exceeding $100 per barrel and a near-total closure of the Strait of Hormuz that removed roughly 20% of global oil supply.
2. Impact on Fast-Food Sales Decline
Weekly restaurant industry sales fell consistently throughout March as consumers faced higher pump prices and stretched disposable incomes, with low-income households disproportionately affected by the surge in energy costs and ongoing commodity inflation.
3. Wendy’s Underperformance Among Peers
Over the past month, Wendy’s stock has slid 10%, underperforming Starbucks and McDonald’s, each down about 7%, while Chipotle shares dropped 15% and Restaurant Brands rallied 5% following a viral marketing push.
4. Operating Cost Pressures and Industry Outlook
Rising energy and commodity costs are raising operating expenses and straining supply chains, though executives report no significant anti-American sentiment affecting US operations; further volatility in oil markets could continue to pressure restaurant margins.