Chipotle Mexican Grill Inc. (CMG): Today's Featured Leisure Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Chipotle Mexican Grill ( CMG) pushed the Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day down 0.1%. By the end of trading, Chipotle Mexican Grill fell $13.17 (-4.2%) to $302.96 on heavy volume. Throughout the day, 3.4 million shares of Chipotle Mexican Grill exchanged hands as compared to its average daily volume of 899,300 shares. The stock ranged in price between $290.15-$319.87 after having opened the day at $319.87 as compared to the previous trading day's close of $316.13. Other companies within the Leisure industry that declined today were: Krispy Kreme Doughnut ( KKD), down 4.5%, Caesars Entertainment ( CZR), down 4.4%, Empire Resorts ( NYNY), down 3.4%, and Asia Entertainment & Resources ( AERL), down 3.3%.
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Chipotle Mexican Grill, Inc. develops and operates fast-casual, fresh Mexican food restaurants in the United States, Canada, the United Kingdom, and France. Its restaurants primarily offer burritos, tacos, burrito bowls, and salads. Chipotle Mexican Grill has a market cap of $10.06 billion and is part of the services sector. The company has a P/E ratio of 38.6, equal to the average leisure industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are down 6.4% year to date as of the close of trading on Monday. Currently there are five analysts that rate Chipotle Mexican Grill a buy, two analysts rate it a sell, and 15 rate it a hold.

TheStreet Ratings rates Chipotle Mexican Grill as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Jamba ( JMBA), up 5.8%, Town Sports International Holdings ( CLUB), up 5%, Cosi ( COSI), up 4%, and PokerTek ( PTEK), up 3.9%, were all gainers within the leisure industry with International ( CTRP) 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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