What Happened?
A number of stocks fell in the afternoon session after investors weighed the impact of surging oil prices and broader economic fears stemming from the conflict in Iran.
International benchmark Brent crude rose 3.9% to $106.2 per barrel, while U.S. West Texas Intermediate futures climbed 3.61%. This surge directly pressured the restaurant industry by increasing supply chain and operational costs. Additionally, higher fuel prices can squeeze household budgets, potentially reducing consumer discretionary spending on dining out.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Sit-Down Dining company Brinker International (NYSE: EAT) fell 5%. Is now the time to buy Brinker International? Access our full analysis report here, it’s free.
- Modern Fast Food company Wingstop (NASDAQ: WING) fell 5.9%. Is now the time to buy Wingstop? Access our full analysis report here, it’s free.
- Modern Fast Food company Shake Shack (NYSE: SHAK) fell 4.3%. Is now the time to buy Shake Shack? Access our full analysis report here, it’s free.
- Traditional Fast Food company Dutch Bros (NYSE: BROS) fell 5.5%. Is now the time to buy Dutch Bros? Access our full analysis report here, it’s free.
Zooming In On Wingstop (WING)
Wingstop’s shares are extremely volatile and have had 32 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 14 days ago when the stock dropped 5.6% on the news that crude oil prices surged past $100 per barrel due to geopolitical conflict, sparking concerns over rising operational costs and a potential decline in consumer spending. The spike in oil prices triggered anxiety across the food service industry, which relies heavily on commercial Liquefied Petroleum Gas (LPG) for daily operations. Analysts warned that energy supply chains were vulnerable, and any disruption could lead to higher fuel costs for restaurants, squeezing already thin profit margins. At the same time, rising gasoline prices threatened to reduce consumer discretionary spending.
Wingstop is down 39.4% since the beginning of the year, and at $155.73 per share, it is trading 59.2% below its 52-week high of $381.46 from June 2025. Despite the year-to-date decline, investors who bought $1,000 worth of Wingstop’s shares 5 years ago would now be looking at an investment worth $1,245.
ONE MORE THING: 3 Hidden Platforms Growing 3X Faster than Amazon, Google, and PayPal. Amazon, Google, and Meta all followed the same playbook: Dominate an ignored market. Build an unbeatable moat. Scale until you’re unstoppable.
These three platforms are running that exact playbook right now. The early investors in Amazon made fortunes. The early investors in these could do the same. Get All 3 Stocks Here for FREE.
