Brinker International Inc. (EAT): 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.

Brinker International ( EAT) pushed the Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day down 0.5%. By the end of trading, Brinker International fell 39 cents (-1.1%) to $34.24 on average volume. Throughout the day, 819,319 shares of Brinker International exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in price between $34.11-$34.89 after having opened the day at $34.77 as compared to the previous trading day's close of $34.63. Other companies within the Leisure industry that declined today were: Fiesta Restaurant Group ( FRGI), down 5.8%, Lakes Entertainment ( LACO), down 5.7%, Chipotle Mexican Grill ( CMG), down 4.5%, and Orbitz Worldwide ( OWW), down 4.4%.
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Brinker International, Inc. owns, develops, operates, and franchises various restaurant brands primarily in the United States. It operates the restaurants under the Chili's Grill & Bar and Maggiano's Little Italy brand names. Brinker International has a market cap of $2.52 billion and is part of the services sector. The company has a P/E ratio of 18.2, equal to the average leisure industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Shares are up 27.2% year to date as of the close of trading on Thursday. Currently there are seven analysts that rate Brinker International a buy, one analyst rates it a sell, and nine rate it a hold.

TheStreet Ratings rates Brinker International as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

On the positive front, Good Times Restaurants ( GTIM), up 10.8%, Caesars Entertainment ( CZR), up 4.1%, International ( CTRP), up 2.7%, and Dover Downs Gaming & Entertainment ( DDE), up 2.5%, were all gainers within the leisure industry with Dunkin Brands Group ( DNKN) 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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