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Even fried chicken sales are down because of the oil crash (PLKI, HOG, CAKE)

Published by Business Insider on Fri, 19 Aug 2016


Popeyes' chicken tenders and biscuits are also on the list of things oil workers are cutting spending on.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 Bacheldersaidduring the earnings call."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% increase in revenue, to $61.7 million, though it was lower than analysts had estimated.Domestic sales slowed to no growth from an 8% increase a year ago because of competition. International sales accelerated year-on-year.SEE ALSO:Harley-Davidson and The Cheesecake Factory reveal how bad the oil crash really isDON'T MISS:'They are hurting right now': The oil patch has been decimatedJoin the conversation about this storyNOW WATCH: We did a blind taste test of wings from Pizza Hut, Domino's, Papa John's, and Buffalo Wild Wings ' the winner was clear
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