Several restaurant stocks are taking a beating on Thursday as broader markets tumble in reaction to sweeping reciprocal tariffs from the Trump administration.
What Happened: President Donald Trump announced new tariffs on several countries across the world on Wednesday, sending markets into a tailspin.
Restaurant stocks are getting hit particularly hard as restaurant chains typically source food machinery and packaging from China. Trump announced 34% tariffs on China this week.
According to a Wall Street Journal report, many restaurant chains buy potatoes from Canada and often import meats from other countries.
Starbucks Corp (NASDAQ:SBUX) has significant exposure to China as the company operates thousands of stores in the country. Starbucks had a total of 7,685 stores in China as of the end of 2024. The company is also a big coffee importer. Shares were down more than 11% at last check, per Benzinga Pro.
Chipotle Mexican Grill Inc (NYSE:CMG) is also facing selling pressure as the company imports avocados from Mexico, Columbia and other countries globally. Chipotle shares were down about 3.5% at the time of writing.
Here’s a look at some other restaurant stocks moving lower Thursday:
- Dutch Bros Inc (NYSE:BROS) down 9.05% at $56.24
- Shake Shack Inc (NYSE:SHAK) down 11.7% at $83.69
- CAVA Group Inc (NYSE:CAVA) down 7.49% at $83.01
- Bloomin’ Brands Inc (NASDAQ:BLMN) down 8.25% at $7.15
- Cracker Barrel Old Country Store Inc (NASDAQ:CBRL) down 13.5% at $35.48
- Portillo’s Inc (NASDAQ:PTLO) down 8.24% at $11.50
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