YUM - Why Restaurant Stocks Jumped Today
Shares of restaurant stocks were flying higher on optimism for an upcoming reopening of the U.S. economy. The news came as President Trump encouraged states to start reopening and as some, like Ohio and Wisconsin, outlined plans for businesses to come back to life in the coming weeks. At the same time, investors responded enthusiastically to a report that remdisivir, a drug made by Gilead, had some success in treating patients with COVID-19.
These news items showed progress in overcoming the outbreak, and investors sent restaurant stocks roaring higher as the sector is particularly sensitive to the shutdown, with dining rooms closed in most locations. Among the winners today were Darden Restaurants (NYSE: DRI), up 9.3%; Bloomin' Brands (NASDAQ: BLMN), up 11.4%; Yum! Brands (NYSE: YUM), up 5%; Wendy's (NASDAQ: WEN), up 6.5%; and Texas Roadhouse (NASDAQ: TXRH), which finished up 10.4%. The S&P 500, meanwhile, closed up 2.7%.
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