How does the Endeavour (ASX:EDV) share price perform during lockdowns?

Could Endeavour be a COVID-19 winner?

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All eyes have been on the Endeavour Group Ltd (ASX: EDV) share price since its Initial Public Offering (IPO).

The company that houses Dan Murphy’s, BWS, and other retail beverage outlets including hotels has experienced multiple Australian lockdowns in its short time on the ASX.

So, how do Endeavour’s shares perform during lockdowns?

How does the Endeavour share price react to lockdowns?

Endeavour’s shares have been performing well on the ASX since the company listed. Endeavour split from Woolworths Group Ltd (ASX: WOW) to debut on the ASX on 24 June.

Woolworths’ financial year 2020 results showed Endeavour Drinks’ sales growth increased by 23.7%, and Dan Murphy’s and BWS reach record sales. Though, the company didn’t state the improvements were caused by COVID-19 lockdowns.

Let’s see if lockdowns spur the market’s excitement for Endeavour.

Endeavour’s IPO occurred the day before Sydney entered its ongoing lockdown, which started life as a ‘soft’ lockdown. While the Endeavour share price gained 1.3% on 25 June, it’s unclear if Sydney’s lockdown was the cause.

Two days after Sydney’s lockdown began, parts of the Northern Territory entered their one and only lockdown. Then, on 28 June, parts of Western Australia also went into lockdown. Parts of Queensland suffered the same fate the following day.

The week during which all the above lockdowns occurred, Endeavour shares seesawed but ultimately gained 1.6%.

When Sydney’s lockdown was extended for the first time on 7 July, the Endeavour share price began an upward trend that’s only been broken during five sessions since.

Additionally, since Victoria entered its fifth lockdown on 16 July, there have been few days that haven’t seen parts of Australia – discounting Greater Sydney – in lockdown.

In that time, the Endeavour share price has gained another 9.9%.

Foolish takeaway

It’s clear that Endeavour’s shares have been performing well lately.

However, it’s hard to say whether they’ve been boosted by lockdowns, as most of Endeavour’s short time on the ASX has seen lockdowns occurring somewhere in Australia.

The Endeavour share price has gained 15% since it first debuted on the exchange. It’s currently $6.93.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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