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The restaurant sector is probably the hardest-hit sector by the novel coronavirus pandemic. Hence, restaurant stocks have fallen by the wayside and continue to show little progress so far. A lot of them have suspended dividends in light of their tumbling earnings.
The Invesco Dynamic Food & Beverage ETF (NYSEARCA:PBJ) is down by roughly 9.6% this year, while the S&P 500 is up 8%.
Perhaps the companies most affected in the sector are those who are heavily dependent on dine-in customers. Such companies aren’t well-versed with the delivery game and have suffered the brunt of the crisis. Hence, restaurant owners have been aggressively pursuing pickup or delivery options such as Postmate and DoorDash. However, such a solution is temporary and cannot take restaurant businesses out of the current rut.
Let’s look at some of the top restaurant