El Pollo Loco, Wingstop Stocks Rise as Oil Dips Below $70
Shares of El Pollo Loco and Wingstop rose in Tuesday's session after WTI crude fell below $70 per barrel, easing pressure on consumer budgets.
Key Numbers
Several restaurant stocks jumped in afternoon trading after West Texas Intermediate (WTI) crude oil fell below $70 per barrel, easing pressure on consumer wallets. Among the gainers were El Pollo Loco and Wingstop.
Details
According to a report from StockStory, shares of El Pollo Loco (NASDAQ: LOCO) and Wingstop (NASDAQ: WING) rallied during the afternoon session after crude oil prices dipped below $70 per barrel. Lower oil prices are seen as positive for the restaurant sector, as they reduce transportation and input costs, and leave consumers with more disposable income for dining out.
Context
The rise comes amid growing concerns about a global economic slowdown, which has weighed on commodity prices. However, lower oil prices are generally good news for consumers and businesses that rely on transportation. Neither company has issued an official statement regarding the stock movements.
What It Means for Investors
While lower oil prices could be a tailwind for the restaurant sector, they do not guarantee sustained performance for El Pollo Loco and Wingstop. Investors should monitor other factors such as same-store sales and labor costs.
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