Wendy's Co (WEN): Today's Featured Leisure Laggard

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Wendy's ( WEN) pushed the Leisure industry lower today making it today's featured Leisure laggard. The industry as a whole was unchanged today. By the end of trading, Wendy's fell $0.20 (-2.3%) to $8.62 on average volume. Throughout the day, 9,050,350 shares of Wendy's exchanged hands as compared to its average daily volume of 6,489,900 shares. The stock ranged in price between $8.59-$8.79 after having opened the day at $8.79 as compared to the previous trading day's close of $8.82. Other companies within the Leisure industry that declined today were: Isle of Capri Casinos ( ISLE), down 4.3%, Frisch's Restaurants ( FRS), down 3.6%, Town Sports International Holdings ( CLUB), down 3.1% and Ark Restaurants ( ARKR), down 2.9%.

The Wendy's Company, through its subsidiaries, owns and franchises Wendy's restaurant system in North America and internationally. It engages in operating, developing, and franchising a system of distinctive quick-service restaurants. Wendy's has a market cap of $3.3 billion and is part of the services sector. Shares are up 77.3% year to date as of the close of trading on Tuesday. Currently there are 6 analysts that rate Wendy's a buy, 1 analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Wendy's as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, Renren ( RENN), up 7.7%, Country Style Cooking Restaurant Chain ( CCSC), up 6.0%, Home Inns & Hotels Management ( HMIN), up 3.6% and Caesars Entertainment ( CZR), up 2.8% , were all gainers within the leisure industry with Buffalo Wild Wings ( BWLD) 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).

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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