Why These Restaurant Stocks Sank on Wednesday
Shares of Cheesecake Factory (NASDAQ: CAKE), Dave & Buster's (NASDAQ: PLAY), and Denny's (NASDAQ: DENN), various restaurant chain stocks, all dropped over 10% Wednesday morning as broader markets sold off due to rising numbers of COVID-19 infections in some regions.
Over the past few weeks, the broader markets have consistently climbed higher as consumers and analysts felt the worst of the COVID-19 coronavirus pandemic was behind us. While it is possible the worst is behind us, the harsh truth is that not only is a second wave possible, we're already seeing spikes in infection cases.
Florida and California announced Wednesday record-high, one-day tallies for new cases, and Arizona hit its own record on Tuesday. Worse yet, Houston Mayor Sylvester Turner said the city's intensive care units were at 97% of capacity.
Source Fool.com
