Chipotle Mexican Grill Inc. (CMG): 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.

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 0.4%. By the end of trading, Chipotle Mexican Grill fell $7.31 (-1.4%) to $525.00 on average volume. Throughout the day, 386,807 shares of Chipotle Mexican Grill exchanged hands as compared to its average daily volume of 394,500 shares. The stock ranged in price between $525.00-$532.77 after having opened the day at $532.16 as compared to the previous trading day's close of $532.31. Other companies within the Leisure industry that declined today were: Cracker Barrel Old Country Store ( CBRL), down 7.2%, Premier Exhibitions ( PRXI), down 3.3%, Orbitz Worldwide ( OWW), down 2.8% and Iao Kun Group Holding Company ( IKGH), down 2.2%.

Chipotle Mexican Grill, Inc. develops and operates fast casual and fresh Mexican food restaurants. Its restaurants primarily offer burritos, tacos, burrito bowls, and salads. As of October 15, 2013, the company operated approximately 1,500 restaurants. Chipotle Mexican Grill, Inc. Chipotle Mexican Grill has a market cap of $16.6 billion and is part of the services sector. The company has a P/E ratio of 54.4, above the S&P 500 P/E ratio of 17.7. Shares are up 80.7% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Chipotle Mexican Grill a buy, 1 analyst rates it a sell, and 10 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 notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

On the positive front, Caesars Entertainment ( CZR), up 9.5%, Monarch Casino & Resort ( MCRI), up 5.8%, Diversified Restaurant Holdings ( BAGR), up 5.5% and Qunar Cayman Islands Ltd ADR repr Class B ( QUNR), up 4.7% , were all gainers within the leisure industry with Priceline.com ( PCLN) 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.
null

If you liked this article you might like

Chipotle Encouraged by Queso's Debut

Amazon Teams With Food Delivery Service to Launch Amazon Restaurants

ADP Is Morphing Into the IBM Blob: Bill Ackman

Is Jollibee About to Bite Off Sandwich Maker Pret A Manger in Record Deal?

Is Jollibee About to Bite Off Sandwich Maker Pret A Manger in Record Deal?