Oil workers are cutting spending on Popeyes’ chicken tenders and biscuits.

Even Popeyes’ Sales Are Sagging Because of the Oil Downturn

Even Popeyes’ Sales Are Sagging Because of the Oil Downturn

Business Insider
Analyzing the top news stories across the web
Aug. 18 2016 2:23 PM

Even Popeyes’ Sales Are Sagging Because of the Oil Downturn

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It might take more than spinach to help Popeyes.

Photo by PAUL J. RICHARDS/AFP/Getty Images

This post originally appeared on Business Insider.

Popeyes’ chicken tenders and biscuits are also on the list of things oil workers are cutting spending on.

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During the second-quarter earnings season, several companies that aren’t in the energy sector continued to mention declines in their businesses in oil-producing areas.

Harley Davidson saw a jump in the number of people in oil-heavy regions who were defaulting on loan payments. Caesars Entertainment said a lot of weakness was in the southeastern US.

And like The Cheesecake Factory, Popeyes demonstrates that it’s not only consumer spending on big-ticket items that has fallen.

There was a bit of weakness in Louisiana and Texas locations, Popeyes CEO Cheryl Bachelder said during the earnings call.

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“We have been monitoring very closely whether or not the change in oil prices will be affecting our stores that are in those regions, and only recently in the last six [or] nine months have there been a slight decline,” said William Matt, Popeyes’ chief financial officer.

The oil downturn, which started in June 2014, has eroded consumer confidence and employment in energy-rich regions. And that’s why several CEOs have mentioned this impact during their earnings calls.

For the second quarter, Popeyes on Tuesday reported a 4 percent increase in revenue, to $61.7 million, though it was lower than analysts had estimated.

Domestic sales slowed to no growth from an 8 percent increase a year ago because of competition. International sales accelerated year-on-year.

Akin Oyedele is a markets and finance intern at Business Insider.