Stock markets’ reaction to COVID-19, US lockdown and waves: the case of fast food and food delivery industry

António Miguel Martins and Susana Cró

Current Issues in Tourism, 2022, vol. 25, issue 11, 1702-1710

Abstract: This paper examines the short-term market reaction of large fast food and food delivery companies to the arrival of the COVID-19 pandemic, US lockdown, and contagion waves. Using an event study, we show that stocks react significantly negatively to the declaration of COVID-19 as a global pandemic but react positively to US lockdown and contagion waves. The change in consumers’ buying behaviour with over-consumption of online experiences tends to explain the positive stock market reaction. These reactions are reinforced or mitigated by firm-specific characteristics such as liquidity, profitability, leverage, institutional ownership, and degree of internationalization.

Date: 2022
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DOI: 10.1080/13683500.2021.1975660

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