What Happened?

A number of stocks fell in the afternoon session after 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.

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 Kura Sushi (NASDAQ: KRUS) fell 2.3%. Is now the time to buy Kura Sushi? Access our full analysis report here, it’s free.
• Sit-Down Dining company Dine Brands (NYSE: DIN) fell 6.2%. Is now the time to buy Dine Brands? Access our full analysis report here, it’s free.
• Sit-Down Dining company BJ's (NASDAQ: BJRI) fell 1%. Is now the time to buy BJ's? Access our full analysis report here, it’s free.
• Sit-Down Dining company Red Robin (NASDAQ: RRGB) fell 1.9%. Is now the time to buy Red Robin? Access our full analysis report here, it’s free.
• Sit-Down Dining company Texas Roadhouse (NASDAQ: TXRH) fell 0.4%. Is now the time to buy Texas Roadhouse? Access our full analysis report here, it’s free.

Zooming In On Dine Brands (DIN)

Dine Brands’s shares are very volatile and have had 23 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 biggest move we wrote about over the last year was about 2 months ago when the stock gained 5.8% on the news that UBS raised its price target on the stock to $35 from $21, although the firm maintained its "Neutral" rating. This significant increase in the price target suggested a more positive outlook for the company's value from the analyst. While the "Neutral" rating was unchanged, the action indicated increased confidence in the stock's potential. The positive sentiment was likely supported by the same analyst's actions elsewhere in the restaurant sector. On the same day, UBS also upgraded competitor Brinker International from "Neutral" to "Buy," which hinted at a more favorable view of the industry as a whole.

Dine Brands is down 7.2% since the beginning of the year, and at $30.84 per share, it is trading 20.5% below its 52-week high of $38.81 from January 2026. Investors who bought $1,000 worth of Dine Brands’s shares 5 years ago would now be looking at an investment worth $391.42.

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