EAT - Why These Restaurant Stocks Popped by Double Digits Monday
Shares of BJ's Restaurants (NASDAQ: BJRI), Bloomin' Brands (NASDAQ: BLMN), and Brinker International (NYSE: EAT), well-known restaurant companies, all jumped over 10% Monday after the hard-hit industry sensed that some states are pushing to dial back social-distancing measures.
The restaurant industry, especially brands that rely heavily on the dine-in crowd rather than pickup and delivery, has been hard hit during COVID-19 as social distancing and closed restaurants have slowed sales to a near standstill. Many companies in the restaurant business aren't prepared for a drastically cut revenue stream over any length of time, and with uncertainty about how long we will have negative impacts from the COVID-19 pandemic, the stocks have been heavily sold off.