What Happened?
A number of stocks fell in the afternoon session after a U.S. jobs report that was much weaker than anticipated signaled potential challenges for consumer spending.
The Labor Department reported an unexpected cut of 92,000 jobs last month, a stark contrast to economists' expectations of 60,000 new jobs. The unemployment rate also ticked up to 4.4%. The restaurant and bar industry was hit particularly hard, shedding nearly 30,000 jobs. This downturn in employment could lead to reduced discretionary spending by consumers, a key driver of revenue for the dining industry. The news compounds existing concerns within the sector, as a recent analysis indicated that 9% of full-service restaurants are considered at risk for closure in 2026, with a significant number of operators reporting unprofitability in the previous year.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.
Among others, the following stocks were impacted:
- Sit-Down Dining company Bloomin' Brands (NASDAQ: BLMN) fell 6.5%. Is now the time to buy Bloomin' Brands? Access our full analysis report here, it’s free.
- Sit-Down Dining company Cracker Barrel (NASDAQ: CBRL) fell 5%. Is now the time to buy Cracker Barrel? Access our full analysis report here, it’s free.
- Traditional Fast Food company Jack in the Box (NASDAQ: JACK) fell 4.6%. Is now the time to buy Jack in the Box? Access our full analysis report here, it’s free.
- Traditional Fast Food company Dutch Bros (NYSE: BROS) fell 5.5%. Is now the time to buy Dutch Bros? Access our full analysis report here, it’s free.
- Sit-Down Dining company Brinker International (NYSE: EAT) fell 4.6%. Is now the time to buy Brinker International? Access our full analysis report here, it’s free.
Zooming In On Bloomin' Brands (BLMN)
Bloomin' Brands’s shares are extremely volatile and have had 50 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 11 days ago when the stock dropped 6.1% on the news that the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty.
The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.
Bloomin' Brands is down 7.3% since the beginning of the year, and at $5.92 per share, it is trading 43.9% below its 52-week high of $10.54 from July 2025. Investors who bought $1,000 worth of Bloomin' Brands’s shares 5 years ago would now be looking at an investment worth $217.34.
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