Dunkin Brands Group Inc (DNKN): Today's Featured Leisure Winner

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 higher today making it today's featured leisure winner. The industry as a whole closed the day up 0.1%. By the end of trading, Dunkin Brands Group rose 41 cents (1.1%) to $37.70 on average volume. Throughout the day, 1.2 million shares of Dunkin Brands Group exchanged hands as compared to its average daily volume of 1.1 million shares. The stock ranged in a price between $37.16-$37.92 after having opened the day at $37.27 as compared to the previous trading day's close of $37.29. Other companies within the Leisure industry that increased today were: Ruth's Hospitality Group ( RUTH), up 6.8%, Orbitz Worldwide ( OWW), up 5.7%, Nevada Gold & Casinos ( UWN), up 5.1%, and Good Times Restaurants ( GTIM), up 5%.
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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 $3.93 billion and is part of the services sector. The company has a P/E ratio of 29.1, above the S&P 500 P/E ratio of 17.7. Shares are up 12.3% 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 eight 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 notable return on equity, expanding profit margins and good cash flow from operations. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.

On the negative front, PokerTek ( PTEK), down 8.3%, Caesars Entertainment ( CZR), down 4.5%, Chuy's Holdings ( CHUY), down 4%, and Dover Downs Gaming & Entertainment ( DDE), down 3.8%, were all laggards within the leisure industry with Chipotle Mexican Grill ( CMG) being today's leisure industry laggard.

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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