McDonald's Corporation (MCD): Today's Featured Leisure Laggard

McDonald's Corporation ( MCD) pushed the Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day up 1.1%. By the end of trading, McDonald's Corporation fell 68 cents (-0.8%) to $89.01 on average volume. Throughout the day, 5.3 million shares of McDonald's Corporation exchanged hands as compared to its average daily volume of 6.5 million shares. The stock ranged in price between $88.97-$90.12 after having opened the day at $89.71 as compared to the previous trading day's close of $89.69. Other company's within the Leisure industry that declined today were: Scientific Games Corporation ( SGMS), down 17.1%, Dover Motorsports ( DVD), down 10.1%, Granite City Food & Brewery ( GCFB), down 5.4%, and Jamba ( JMBA), down 4.7%.

McDonald's Corporation, together with its subsidiaries, franchises and operates McDonald's restaurants primarily in the United States, Europe, the Asia Pacific, the Middle East, and Africa. McDonald's Corporation has a market cap of $91.05 billion and is part of the services sector. The company has a P/E ratio of 16.8, equal to the average leisure industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Shares are down 10.7% year to date as of the close of trading on Monday. Currently there are 15 analysts that rate McDonald's Corporation a buy, no analysts rate it a sell, and nine rate it a hold.

TheStreet Ratings rates McDonald's Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the positive front, Arcos Dorados Holdings ( ARCO), up 14.1%, Multimedia Games ( MGAM), up 11.9%, Pizza Inn Holdings ( PZZI), up 8.3%, and Caribou Coffee Company ( CBOU), up 7.8%, were all gainers within the leisure industry with Marriott International ( MAR) being today's featured leisure industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the leisure industry could consider PowerShares Dynamic Leisure&Entert ( PEJ) while those bearish on the leisure industry could consider ProShares Ultra Sht Consumer Services ( SCC).
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