RUTH - Why Restaurant Stocks Climbed Again Thursday
Restaurant stocks gained for the second day in a row on Thursday as hopes of a quick recovery continue to hold sway. Investors seem to believe that the worst of the coronavirus effect has passed and that the economy is on its way to steady improvement, which now favors the sectors hardest-hit by the lockdowns. That includes consumer discretionary stocks like those in the restaurant and travel sectors.
Among Thursday's winners were Dave & Buster's (NASDAQ: PLAY), which finished up 22.4%, Ruth's Hospitality (NASDAQ: RUTH), which gained 9.6%, Denny's (NASDAQ: DENN), which closed 7.5% higher, and The Cheesecake Factory (NASDAQ: CAKE), which rose 7.6% on the day.
What was also notable was that the broader market was down for the day as the S&P 500 lost 0.3%. There was a clear rotation out of stocks that have done relatively well over the last couple of months, like the tech sector, and into beaten-down stocks, like restaurants, that will see business improve during the reopening.