Why the Stock of Dave & Buster's, Darden Restaurants, and Brinker Plunged 10% Today
Shares of Dave & Buster's Entertainment (NASDAQ: PLAY), Darden Restaurants (NYSE: DRI), and Brinker International (NYSE: EAT), a group of well-known restaurant companies, plunged 8.4%, 6.3%, and 8%, respectively, on Wednesday after comments from Federal Reserve Chairman Jerome Powell removed some optimism for a speedy economic recovery.
Powell's comments Wednesday made a V-shaped recovery seem more unlikely, which is obviously grim news for the badly hurt restaurant industry, where many will struggle financially with a long-term slash in revenue potential. "The recovery may take some time to gather momentum, and the passage of time can turn liquidity problems into solvency problems," Powell said during his webcast appearance with the Peterson Institute for International Economics.
He also noted that a longer downturn could "leave behind lasting damage" to the economy. The gloomy comments sent broader markets lower.
Source Fool.com
