While the Pandemic Wrecked Some Businesses, Others Did Fine. Even Great.


Mr. Cooper, a mortgage company, believed that it might face a financial squeeze in the spring when some homeowners were unable to make monthly payments. But a federal regulator provided relief to mortgage lenders, and then business was helped by a surge in refinancing. Mr. Cooper’s revenue in the first nine months of the year was up 40 percent, and its stock has climbed 341 percent from its low in April.

During recessions, consumers often decide to pull back and avoid large outlays. But this year, something different happened. Many Americans who did not lose jobs but were also not spending on travel and entertainment found themselves with more disposable income. The $1,200 stimulus payments from the government also helped.

This has been a boon for companies that initially feared a deep recession. General Motors and Ford Motor, for example, rushed to borrow billions of dollars early in the year, expecting that car sales would tumble and stay low for a while. The auto business did struggle and automakers had to close their factories for about two months, but sales started picking up this summer. For the third quarter, G.M., Ford and other automakers reported big profits.

Some large restaurant chains, after pressing for a federal bailout, have done much better than expected as drive-through customers, delivery and takeout orders bolstered sales. On Thursday, Papa John’s, whose stock is up 32 percent this year, reported surging sales, profits and cash flow and announced a new stock buyback program. Its chief executive, Rob Lynch, said the company had added “over eight million” customers this year.

Asked on a call with financial analysts Thursday if the company can hold on to such gains, Mr. Lynch said that many of the new customers were dining more frequently and that the average spending per order was larger than before the pandemic.

“So that gives us a lot of confidence that they have come in, they are enjoying their experience and they’re coming back,” Mr. Lynch said.

But there are winners and losers even within industries. Darden Restaurants, which owns Olive Garden and other brands that are more reliant on in-restaurant dining, reported a 28 percent decline in sales in the three months through the end of August. Its stock price is down 6 percent this year.



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