Restaurant sector breaks higher on relief hopes

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Restaurants stocks are racing higher on increased calls for financial help from the government amid mass dine-in closings with coronavirus cases in all 50 states.

The National Restaurant Association asked for a $145B recovery fund from the Treasury Department for the restaurant and foodservice industry in a letter addressed to President Donald Trump, House Speaker Nancy Pelosi and Senate Major Leader Mitch McConnell.

Analysts have also been encouraged by the quick action of companies to max out credit lines and stockpile cash ahead of the rough stretch coming up.

Notable gainers include Carrols Restaurants (TAST +15.9%), BJ’s Restaurants (BJRI +12.7%), Brinker International (EAT +19.4%), Domino’s Pizza (DPZ +9.5%), Dine Brands Global (DIN +9.4%), Denny’s DENn, Wendy’s (WEN +15.9%), Jack in the Box (JACK +18.8%), Chipotle (CMG +11.2%), Cracker Barrel CBRL and Chuy’s Holdings (CHUY +6.3%).

Entertainment chain Dave & Buster’s (NASDAQ:PLAY) is up 91% after firing off a poison pill earlier in the day.

Food delivery player Waitr Holdings (NASDAQ:WTRH) is 50% higher on the day.

Meanwhile, online meal kit provided Blue Apron (NYSE:APRN) is down 30.55% in a sudden turn south after hitting a 52-week high earlier in the session.

Source: dailystockbuzz

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