McDonald's Corporation (MCD): 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.

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 down 0.6%. By the end of trading, McDonald's Corporation fell $1.10 (-1.2%) to $94 on average volume. Throughout the day, 6.6 million shares of McDonald's Corporation exchanged hands as compared to its average daily volume of 5.4 million shares. The stock ranged in price between $93.48-$94.75 after having opened the day at $94.65 as compared to the previous trading day's close of $95.10. Other companies within the Leisure industry that declined today were: Nevada Gold & Casinos ( UWN), down 10.8%, Caesars Entertainment ( CZR), down 9.4%, Pinnacle Entertainment ( PNK), down 5.9%, and Buffalo Wild Wings ( BWLD), down 5.6%.
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McDonald's Corporation franchises and operates McDonald's restaurants in the global restaurant industry. Its restaurants offer various food items, soft drinks, coffee, and other beverages. The company operates approximately 34,000 restaurants in 120 countries around the world. McDonald's Corporation has a market cap of $95.55 billion and is part of the services sector. The company has a P/E ratio of 17.8, equal to the S&P 500 P/E ratio of 17.7. Shares are up 7.9% year to date as of the close of trading on Tuesday. Currently there are 15 analysts that rate McDonald's Corporation a buy, no analysts rate it a sell, and 11 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 net income, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Del Frisco's Restaurant Group ( DFRG), up 7.2%, Famous Dave's of America ( DAVE), up 4.3%, Fiesta Restaurant Group ( FRGI), up 3.2%, and Chuy's Holdings ( CHUY), up 2.8%, were all gainers within the leisure industry with Melco Crown Entertainment ( MPEL) 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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