Why Restaurant Stocks Tumbled Today
Restaurant stocks have been all over the map in recent weeks, swinging on news about the coronavirus pandemic as the industry is one of the most threatened by the outbreak. Restaurants across the country have been forced to limit themselves to takeout and delivery to stop the spread of the virus.
Today was no different as industry stocks fell in tandem with the broader market, which was sliding after President Trump said yesterday that the next two weeks could be "very, very painful" as deaths from COVID-19 mount. The government also predicted that the virus would cause between 100,000 and 240,000 deaths in the U.S. in the coming months.
Not surprisingly, that announcement affected the restaurant sector, which is hoping for a quick end to the outbreak so locations can reopen and business can return to normal. As of 12:10 p.m. EDT, a number of restaurant stocks were trading lower including Dave & Buster's (NASDAQ: PLAY), which was down 18%, Wendy's(NASDAQ: WEN), which was 6.7% lower, BJ's Restaurants (NASDAQ: BJRI), which had fallen 15%, and Darden Restaurants (NYSE: DRI), which was off 15.8%. At the same time, the S&P 500 index had given up 3.7%.
Source Fool.com
