Except that after the drop when the investigation was made public, it’s doing better than it was just prior to the announcement.
So unless an investor decided to sell at its lowest point, which is unlikely, they’ve actually made money since that news came out
Another perspective is that a 3% increase in prices - even without non-labor inflation - to pay people closer to a living wage reflects a more accurate cost of that dining experience. It could be that the public is subsidizing those restaurants’ labor through social programs that make up the difference vs a living wage
As you noted, with the real (or at least more realistic) cost of eating out reflected in the pricing, consumers will decide if that experience is worth it. And some businesses may close. And that’s called capitalism