When Will It Be Safe to Nibble on Restaurant Stocks Again?
Wall Street is showing some love for the restaurant industry on Wednesday morning. McDonald's (NYSE: MCD), Darden Restaurants (NYSE: DRI), and Texas Roadhouse (NASDAQ: TXRH) are all receiving analyst upgrades, a day after most of the fast-food and casual-dining chains rallied with the general market.
The upgrades come at a challenging time for the industry. Most chains are currently limited to take-out and delivery, shutting down dining rooms in an effort to contain the novel coronavirus. The near-term financial hit will be huge, but with many restaurant stocks trading well below their recent peaks, some investors feel that it's finally time to step up and place some orders. It's too soon to know if today's opportunity will pay off.
Image source: Darden Restaurants.
Source Fool.com
