McDonald's Corporation (MCD): Leisure's Featured Daily 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 0.2%. By the end of trading, McDonald's Corporation fell $1.03 (-1%) to $98.24 on average volume. Throughout the day, 4.9 million shares of McDonald's Corporation exchanged hands as compared to its average daily volume of five million shares. The stock ranged in price between $98.12-$99.60 after having opened the day at $99.46 as compared to the previous trading day's close of $99.27. Other companies within the Leisure industry that declined today were: Asia Entertainment & Resources ( AERL), down 5.3%, Full House Resorts ( FLL), down 5%, Empire Resorts ( NYNY), down 4.5%, and Carrols Restaurant Group ( TAST), down 4.4%.
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McDonald's Corporation franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. Its restaurants offer various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. McDonald's Corporation has a market cap of $99.05 billion and is part of the services sector. The company has a P/E ratio of 18.4, above the S&P 500 P/E ratio of 17.7. Shares are up 11.7% year to date as of the close of trading on Friday. Currently there are 14 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, good cash flow from operations, growth in earnings per share and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

On the positive front, MTR Gaming Group ( MNTG), up 7%, Ctrip.com International ( CTRP), up 4.7%, Boyd Gaming Corporation ( BYD), up 4.3%, and Chanticleer Holdings ( HOTR), up 4.1%, were all gainers within the leisure industry with Las Vegas Sands ( LVS) 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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