Dunkin Brands Group Inc (DNKN): 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.

Dunkin Brands Group ( DNKN) pushed the Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole closed the day up 0.7%. By the end of trading, Dunkin Brands Group fell 37 cents (-1.2%) to $31.66 on light volume. Throughout the day, 659,461 shares of Dunkin Brands Group exchanged hands as compared to its average daily volume of 1.3 million shares. The stock ranged in price between $31.60-$32.06 after having opened the day at $31.96 as compared to the previous trading day's close of $32.03. Other companies within the Leisure industry that declined today were: Nevada Gold & Casinos ( UWN), down 4.1%, MakeMyTrip ( MMYT), down 3.1%, Jamba ( JMBA), down 2.8%, and Einstein Noah Restaurant Group ( BAGL), down 2.4%.
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Dunkin' Brands Group, Inc., together with its subsidiaries, owns, operates, and franchises quick service restaurants under the Dunkin' Donuts and Baskin-Robbins brands worldwide. It restaurants offer coffee, donuts, bagels, ice cream, frozen beverages, baked goods, and related products. Dunkin Brands Group has a market cap of $3.4 billion and is part of the services sector. The company has a P/E ratio of 26.6, above the S&P 500 P/E ratio of 17.7. Shares are up 29% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Dunkin Brands Group a buy, no analysts rate it a sell, and seven rate it a hold.

TheStreet Ratings rates Dunkin Brands Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, premium valuation and weak operating cash flow.

On the positive front, Empire Resorts ( NYNY), up 15.6%, PokerTek ( PTEK), up 11.1%, China Lodging Group ( HTHT), up 8.9%, and Ctrip.com International ( CTRP), up 5.4%, were all gainers within the leisure industry with Starwood Hotels & Resorts Worldwide ( HOT) 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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