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 0.5%. By the end of trading, Chipotle Mexican Grill fell $5.66 (-1.7%) to $321.84 on average volume. Throughout the day, 474,590 shares of Chipotle Mexican Grill exchanged hands as compared to its average daily volume of 602,200 shares. The stock ranged in price between $320.63-$328.88 after having opened the day at $328.27 as compared to the previous trading day's close of $327.50. Other companies within the Leisure industry that declined today were: PokerTek ( PTEK), down 9.4%, Pizza Inn Holdings ( PZZI), down 6.5%, Del Frisco's Restaurant Group ( DFRG), down 4.6%, and Chanticleer Holdings ( HOTR), down 4.3%.
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Chipotle Mexican Grill, Inc. develops and operates fast casual and fresh Mexican food restaurants. Its restaurants primarily offer burritos, tacos, burrito bowls, and salads. Chipotle Mexican Grill has a market cap of $10.21 billion and is part of the services sector. The company has a P/E ratio of 37.6, above the S&P 500 P/E ratio of 17.7. Shares are up 10.1% 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, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

On the positive front, Asia Entertainment & Resources ( AERL), up 9.5%, China Lodging Group ( HTHT), up 4.4%, Vail Resorts ( MTN), up 4.2%, and Nevada Gold & Casinos ( UWN), up 3.5%, 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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