Blue Apron Soars as Cities Curtail Restaurants, Shoppers Panic

Joshua Fineman and Andres Guerra Luz, Bloomberg News

BOSTON, MA - JUNE 28: In this photo illustration, a Blue Apron box sits on the porch of a house on June 28, 2017 in Boston, Massachusetts. The online meal-kit delivery company is going public and has lowered their upcoming IPO price range from $15 to $17 a share to $10 to $11 a share. (Photo by Scott Eisen/Getty Images) , Photographer: Scott Eisen/Getty Images North America

(Bloomberg) -- Blue Apron Holdings Inc.’s stock more than doubled this week as cities around the country are forcing restaurants to curtail operations and as panic-buying empties the shelves of the nation’s grocers.

“With so many households practicing social distancing and remaining at home, getting fresh ingredients for at-home preparation holds appeal,” Bloomberg Intelligence senior analyst Jennifer Bartashus said.

Shares of the meal kit delivery are up more than 50% for a second straight day, while Canadian peer Goodfood Market Corp. increased 44% over the two-day period. Food delivery services Waitr Holdings Inc.’s stock is up 141% since the start of the week and GrubHub Inc. climbed 22% Tuesday.

Some major cities including New York, Los Angeles and Seattle are limiting restaurants to take out and delivery orders. Similar rules have been put in place in states including Illinois, Massachusetts, and Ohio. Meanwhile, supermarkets are being flooded with customers, emptying shelves for some items.

Last month, Blue Apron announced that it’s evaluating options to rekindle the business, including raising additional capital or selling assets. If the troubled company can capitalize on the virus-driven boost in demand, it may be more likely to pull off a sale, Bartashus said

Blue Apron short interest is 41% of float, according to S3 Partners.