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 up 0.1%. By the end of trading, Chipotle Mexican Grill fell $3.53 (-1.1%) to $314.19 on average volume. Throughout the day, 678,116 shares of Chipotle Mexican Grill exchanged hands as compared to its average daily volume of 630,100 shares. The stock ranged in price between $310.78-$319.03 after having opened the day at $319.03 as compared to the previous trading day's close of $317.72. Other companies within the Leisure industry that declined today were: 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%.
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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 $9.84 billion and is part of the services sector. The company has a P/E ratio of 36.2, above the S&P 500 P/E ratio of 17.7. Shares are up 6.6% year to date as of the close of trading on Thursday. Currently there are six analysts that rate Chipotle Mexican Grill a buy, two analysts rate it a sell, and 13 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, notable return on equity, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, 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%, 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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