Blue Apron Shares on High Heat After Restaurant Closures

Blue Apron’s shares are higher as investors speculate that its meal-kit business will jump since the coronavirus outbreak is forcing restaurants to close.
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Blue Apron  (APRN) - Get Report shares on Tuesday jumped amid investor speculation that the meal-kit provider will benefit as restaurants nationwide close in response to the coronavirus outbreak.

Just last month the New York company said it was reviewing strategic alternatives, which could include a sale. Blue Apron has racked up substantial losses as intense competition pervades the meal-kit business.

But this month is all about the coronavirus pandemic. And markets are manic, severely punishing companies, such as airlines, that are suffering from the outbreak and lifting those expected to benefit, such as the providers of coronavirus-testing kits.

Blue Apron posted a fourth-quarter net loss of $21.9 million, narrowed from $23.7 million in the year-earlier quarter. It booked revenue of $94.3 million, down a third from $140.7 million. 

CEO Linda Findley Kozlowski said in a statement with the earnings last month: “We continue to believe that we have the right strategy to drive our resumption of growth, as we work to launch additional new capabilities and test new product offerings.

“Our strategic-alternatives process, together with our cost-optimization initiatives, is intended to best position the company for the future, including to support our growth strategy.”

At last check, Blue Apron shares traded at $6.33, up 66%. Including today's move up, the stock has dropped 60% over the past 12 months, compared with a 14% decline for the S&P 500 index. 

Here is a list of every state that has closed restaurants and bars and transitioned to delivery or takeout to combat the coronavirus pandemic by Food and Wine.