Why Restaurant Stocks Slumped Today
Shares of Cheesecake Factory (NASDAQ: CAKE), BJ's Restaurants (NASDAQ: BJRI), and Red Robin Gourmet Burgers (NASDAQ: RRGB) all declined more than 10% at one point Thursday, with Red Robin dropping as much as 20%, as COVID-19 coronavirus fears continue to spread and pressure restaurant stocks, among many others.
As fears regarding the COVID-19 coronavirus spread, and the number of new cases continues to rise, markets have been swinging from significant gains to losses on any given day. At the time of this writing, the count of COVID-19 coronavirus cases worldwide was 97,771, and deaths had reached 3,346. At least 165 people have tested positive in the U.S., and some companies in specific areas have begun to recommend employees work from home.
Public health officials are also suggesting that people think twice about attending large events and gatherings, and even places such as nursing homes. It's the uncertainty and disruption to some consumers' daily lives, and the fear the impact could get much worse, that are hurting the markets.
Source Fool.com
