McDonald's Corporation (MCD): 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.

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 0.3%. By the end of trading, McDonald's Corporation fell $1.15 (-1.2%) to $94.91 on average volume. Throughout the day, 5,026,812 shares of McDonald's Corporation exchanged hands as compared to its average daily volume of 5,151,200 shares. The stock ranged in price between $94.77-$96.13 after having opened the day at $96.02 as compared to the previous trading day's close of $96.06. Other companies within the Leisure industry that declined today were: BJ's Restaurants ( BJRI), down 5.0%, Bloomin Brands ( BLMN), down 4.4%, Fiesta Restaurant Group ( FRGI), down 4.0% and Cheesecake Factory ( CAKE), down 3.9%.

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 $95.0 billion and is part of the services sector. The company has a P/E ratio of 17.2, below the S&P 500 P/E ratio of 17.7. Shares are down 1.0% year to date as of the close of trading on Thursday. Currently there are 11 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, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, 500.com Ltd ADR ( WBAI), up 5.9%, Century Casinos ( CNTY), up 5.4%, China Lodging Group ( HTHT), up 4.0% and Expedia ( EXPE), up 3.2% , were all gainers within the leisure industry with MGM Resorts International ( MGM) 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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