Coronavirus takes a toll on stock prices of restaurant

March 12 stock market activity hit the restaurant industry hard as share prices dropped by double-digit % for many firms. There is no doubt that the outbreak of coronavirus (COVID-19) has already had a negative impact and shows that the outbreak may result in people reducing the frequency of their restaurant trips for months to come.

Coronavirus takes a toll on stock prices of restaurant

On the New York Stock Exchange, the stock price for Sysco Corp., Houston, dropped 21% to $43.51 per share, down from a close of $55.15 on March 11. Across the day on March 12, stock was as low as $43.49, a 52-week low.  Sysco Corp. is a pioneer in the manufacture, promotion and distribution of food items to restaurants, health care and educational facilities, lodging facilities and other customers who prepare meals away from home.

DineEquity, which owns the brands of Applebee and IHOP, closed at $35.00 per share on the NYSE on March 12, down 32% from the close of $51.34 per share on March 11. The 52 week low before March 12 was $50.87 per share reached on March 11 during the day.

Darden Restaurants, Inc., Orlando, Fla., owns the brands Olive Garden, LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze Island Grille and Eddie V’s Prime Seafood. Its stock price on the NYSE on March 12 closed at $59.17 per share, down 16% from a March 11 close of $70.21 per share. A 52-week low of $57.27 was recorded during the day on March 12.

Yum! Brands, Inc., Louisville, Ky., closed on March 12 on the NYSE at $78.45 per share, down 3% from $80.97 on March 11. A trading price of $74.61 per share was still a 52-week low for the day on March 12. Pizza Hut, Kentucky Fried Chicken and Taco Bell are owned by Yum! Brands.

Chipotle Mexican Grill, Inc., Newport Beach, Calif., on March 12 said from March 15 to March 31 it will offer free delivery on any Chipotle order between $10 and $200 via the Chipotle app and Chipotle.com. Chipotle deliveries will feature a new, tamper-evident packaging seal to help ensure food is untouched during delivery. Chipotle closed at $603.00 per share on March 12 on the NYSE, which was down 7% from $646.39 per share on March 11. A price of $565.01 during the day on March 12 marked a 52-week low.

The stock price for Starbucks Corp., Seattle, closed at $62.10 per share on March 12 on the Nasdaq, down 9% from $68.30 per share on March 11. A 52-week low of $61.47 was recorded during the day on March 12. The Seattle Times on March 12 said the coronavirus outbreak was known to have killed 31 people in Washington state. Because of health concerns related to the coronavirus outbreak, Starbucks’ annual meeting on March 18 will be in a virtual meeting format only. McDonald’s Corp., Jack in the Box, Dunkin’ Brands Group, Inc. and Restaurant Brands International, Inc. all recorded 52-week lows on March 12.

The NYSE stock price for McDonald's Corp., Chicago, closed at $170.13 per share on March 12, down almost 10% from the close of $188.25 on March 11. Jack in the Hat, San Diego, closed on March 12 at $39.65 per share on the Nasdaq, down 16% from March 11 at $47.11 per share. Dunkin ' Brands Company, Inc., Canton, Mass., closed on March 12 with a stock price of $54.46 per share, down 15 % from a $64.25 close the day before.

Potential in the foodservice industry exists for delivery orders through third-party and self-delivery options. Since consumers may need to visit supermarkets on a regular basis, the trend potentially could increase purchasing of supermarket foodservice items during grocery shopping trips.