Why Restaurant Stocks Came Roaring Back on Tuesday
Shares of restaurant stocks made a huge recovery on Tuesday as an economic stimulus plan made its way toward the finish line in Congress. Shares of Texas Roadhouse (NASDAQ: TXRH), Dave & Buster's Entertainment (NASDAQ: PLAY), BJ's Restaurants (NASDAQ: BJRI), McDonald's (NYSE: MCD), Shake Shack (NYSE: SHAK), and Chipotle Mexican Grill (NYSE: CMG) all jumped over 15% at their highs, and held double-digit gains at the close.
Source: Google Finance.
There are two main components in the $2 trillion stimulus package being negotiated in Congress, and both could help the restaurant industry. The first is a check that will go to Americans to help them get through layoffs or the recession that may already be hitting the economy. The other is $500 billion in money designated to lend to companies hit especially hard by the COVID-19 pandemic. Restaurants would be a likely beneficiary of this funding, potentially including the companies listed above.
Source Fool.com
