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 0.2%. By the end of trading, McDonald's Corporation fell $1.34 (-1.3%) to $100.95 on average volume. Throughout the day, 5,193,419 shares of McDonald's Corporation exchanged hands as compared to its average daily volume of 4,665,300 shares. The stock ranged in price between $100.76-$102.28 after having opened the day at $102.20 as compared to the previous trading day's close of $102.29. Other companies within the Leisure industry that declined today were: Scientific Games Corporation ( SGMS), down 6.5%, Wendy's ( WEN), down 5.6%, PokerTek ( PTEK), down 5.5% and Good Times Restaurants ( GTIM), down 4.7%.
  • EXCLUSIVE OFFER: Jim Cramer's Protege, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

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 $102.3 billion and is part of the services sector. The company has a P/E ratio of 18.9, above the S&P 500 P/E ratio of 17.7. Shares are up 16.0% year to date as of the close of trading on Tuesday. Currently there are 14 analysts that rate McDonald's Corporation a buy, no analysts rate it a sell, and 10 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, good cash flow from operations, growth in earnings per share, increase in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

On the positive front, Orient-Express Hotels ( OEH), down 8.2%, Orbitz Worldwide ( OWW), down 4.4%, Carrols Restaurant Group ( TAST), down 3.4% and Pizza Inn Holdings ( PZZI), down 3.2% , were all gainers within the leisure industry with Brinker International ( EAT) 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).

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
null

If you liked this article you might like

How to Travel in Style Exactly Like Billionaire Warren Buffett

Panera Bread Dares CEOs of McDonald's, Wendy's and Others to Eat Off Kids Menu

How Healthy Is That Happy Meal? Inside the Kids' Menus at McDonald's and More

Stocks Dad Would Have Loved, And Why He Was Right

5 Things on the Menu at Jollibee, the McDonald's of the Philippines