Why Shares of Restaurants Spiked Higher Friday Morning
Shares of restaurants traded up sharply on Friday morning, on hopes for government assistance to help them through the COVID-19 pandemic and a significant decline in consumers eating out. The stocks faded as the day went on, however, as it became increasingly clear investors would have to go into the weekend uncertain about what a bailout would look like.
Shares of Wendy's (NASDAQ: WEN) opened up 20% and were up 5% heading toward the close, while shares of Dave & Buster's Entertainment (NASDAQ: PLAY) and Darden Restaurants (NYSE: DRI) both opened up with significant gains but headed toward the close in the red.
It's not hard to understand how restaurants have been devastated by the pandemic. Consumers are being told to keep a distance between one another, and in some large metropolitan areas are being told to shelter in place. That's not good for an industry built around social occasions.
Source Fool.com
