Why Restaurant Stocks Were Volatile Today
Investors in restaurant stocks endured a choppy session on Monday, as the markets rose and fell with headlines on whether a stimulus package was coming out of Washington, as well as talk of what the competitive landscape might look like when the COVID-19 pandemic is finally behind us.
Among major movers, BJ's Restaurants (NASDAQ: BJRI) and Dave & Buster's Entertainment (NASDAQ: PLAY) each opened with a more than 20% gain before retreating somewhat. McDonald's (NYSE: MCD), meanwhile, swung between being up 3% and down 6% during the trading day.
Restaurants have been hard hit by the pandemic, with the federal government urging citizens to practice social distancing and some local jurisdictions imposing curfews and ordering nonessential businesses to close. Given that restaurants have razor-thin margins even in the best of times, that is a formula for disaster for the industry.
Source Fool.com
