Why Shares of Brinker, Darden, and BJ's Restaurants Fell Today
Casual dining stocks including Brinker International (NYSE: EAT), Darden Restaurants (NYSE: DRI), and BJ's Restaurants (NASDAQ: BJRI) were heading lower as stocks fell broadly today and one analyst slashed his price target on Chili's parent Brinker.
After making gains last week, the S&P 500 pulled back as investors remained nervous about next steps in the coronavirus crisis and looked ahead to what will likely be an ugly earnings season with big banks set to kick off first-quarter earnings this week. Restaurant stocks, especially casual dining chains, are especially sensitive to the lockdown-style conditions in effect across much of the country as dining inside restaurants has been banned. That change effectively limits these chains to takeout and delivery, and also takes away high-margin alcohol sales.
As of 12:49 p.m. EDT today, Brinker was down 13.5%, Darden had declined 6%, and BJ's was off 9%. At the same time, the S&P 500 was trading 1.8% lower.
Source Fool.com
