Markets Brew Up As Tariffs Stir Up Turbulence In Coffee Industry

Restaurant Stocks Are Getting Cooked Thursday as Trump Tariffs Rattle Markets

By Benzinga Staff

Thursday has been a wild ride for restaurant stocks, with many shares plummeting in the wake of President Trump's tariffs on steel and aluminum imports. The tariffs, which went into effect at midnight, have sent shockwaves through the market, causing many stocks to cook in the process.

Among the hardest hit were stocks of companies that rely heavily on imported steel and aluminum, such as fast-casual chains like Chipotle Mexican Grill (NYSE: CMG) and Panera Bread (NYSE: PNRA). Chipotle's shares fell as much as 5.5% to $320.50, while Panera's stock dropped 4.5% to $215.00.

Other restaurant chains, including casual dining giant Darden Restaurants (NYSE: DRI), which owns Olive Garden and Red Lobster, also saw their shares take a hit. Darden's stock fell 3.5% to $70.50.

The tariffs are expected to increase costs for restaurant operators, which could lead to higher prices for consumers and potentially hurt sales. The National Restaurant Association has estimated that the tariffs could result in a loss of up to 160,000 jobs in the restaurant industry.

Other industries, such as manufacturing and construction, are also feeling the impact of the tariffs. The Dow Jones Industrial Average (DJIA) fell as much as 2.5% to 24,000, while the S&P 500 Index (SPX) dropped 2.3% to 2,600.

The tariffs have also sparked concerns about the potential impact on the broader economy. The International Trade Commission has estimated that the tariffs could result in a loss of up to $3 billion in economic output.

As the market continues to digest the impact of the tariffs, investors are left wondering what the future holds for restaurant stocks and the broader economy. One thing is certain, however: the tariffs have sent a clear message that the market is not immune to the whims of global trade policy.