DRI - Why These Beaten-Down Restaurant Stocks Are Surging
Shares of Dave & Buster's (NASDAQ: PLAY), Ruth's Hospitality Group (NASDAQ: RUTH), and Darden Restaurants (NYSE: DRI), various restaurant chains are jumping Friday -- Dave & Buster's and Ruth's jumped over 17% at one point -- after a positive jobs report pumped optimism into the markets.
Friday brought surprising yet incredibly welcomed news when the Labor Department's jobs report showed that the economy added 2.5 million non-farm jobs in May. Not only was May's result a strong number, it was shocking considering consensus forecasts called for a 7.5 million loss in non-farm payrolls. While unemployment is still a staggering 13.3%, that's vastly favorable to the expected 19% and better than the 14.7% level in April.
In addition to the phenomenal jobs report Friday, consider that American Airlines Group announced plans to boost flights by 74% next month, suggesting there is hope in a quick rebound for even the most beaten-down industries.