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Stocks - Restaurant Stocks Rebound Following Hurricane Induced Sell-Off

Published 09/12/2017, 01:34 PM
Updated 09/12/2017, 01:34 PM
© Reuters.  Stocks - Restaurant Stocks Rebound Following Hurricane Induced Sell-Off

Investing.com - Businesses continue to reopen following closures ahead of Hurricane Irma, and this includes restaurants. As a result, we are seeing an increase in the share value of restaurant stocks with locations in Florida.

While these companies experienced a sell-off ahead of Irma, they were rebounding on Monday. The Cheesecake Factory (NASDAQ:CAKE), Buffalo Wild Wings Inc (NASDAQ:BWLD), Ruth's Hospitality Group Inc (NASDAQ:RUTH) and Red Robin Gourmet Burgers Inc (NASDAQ:RRGB) led the charge higher.

According to Black Box Intelligence restaurant same-store sales decreased 2.0% year-over-year in August with comparable traffic dropping 3.9%. Hurricane Harvey contributed to the decline. When releasing the August figures (on September 8) Black Box added, that the impact of Hurricane Harvey and potentially Irma are large enough to slow growth in the third quarter.

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