Why Dave & Buster's, Bloomin' Brands, and The Chefs' Warehouse Stocks Dropped 10% Monday

Shares of Dave & Buster's (NASDAQ: PLAY), Bloomin' Brands (NASDAQ: BLMN), and The Chefs' Warehouse (NASDAQ: CHEF) all dropped roughly 10% on Monday as the broader markets reacted to a jump in coronavirus cases in the U.S. and overseas, which could signal trouble for already struggling restaurant stocks.

The U.S. had consecutive days of record new COVID-19 cases over the weekend, with the West and Midwest being the most severely hit. While the markets have rebounded from the initial spread in March and April, they are reacting not only to a spike in new cases but also to tightening restrictions in Europe. The notion that the globe could be trending toward more restrictions once again is enough reason for a small sell-off in stocks of restaurants that would almost certainly be hurt.