3 Stocks Pushing The Leisure Industry Lower

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.

The Leisure industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.1%. Laggards within the Leisure industry included Chanticleer Holdings ( HOTR), down 3.6%, Full House Resorts ( FLL), down 2.5%, Red Lion Hotels ( RLH), down 2.3%, Country Style Cooking Restaurant Chain Co L ( CCSC), down 3.2% and Lakes Entertainment ( LACO), down 4.0%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Country Style Cooking Restaurant Chain Co L ( CCSC) is one of the companies that pushed the Leisure industry lower today. Country Style Cooking Restaurant Chain Co L was down $0.23 (3.2%) to $6.87 on average volume. Throughout the day, 18,618 shares of Country Style Cooking Restaurant Chain Co L exchanged hands as compared to its average daily volume of 16,500 shares. The stock ranged in price between $6.85-$7.13 after having opened the day at $6.85 as compared to the previous trading day's close of $7.10.

Country Style Cooking Restaurant Chain Co., Ltd. operates a quick service restaurant chain in the People's Republic of China. The company specializes in serving Sichuan-style fast food over the counter. As of March 31, 2014, it operated 303 restaurants. Country Style Cooking Restaurant Chain Co L has a market cap of $190.9 million and is part of the services sector. Shares are down 29.4% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Country Style Cooking Restaurant Chain Co L as a hold. 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 and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on CCSC go as follows:

  • The revenue growth came in higher than the industry average of 5.6%. Since the same quarter one year prior, revenues slightly increased by 4.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • CCSC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.77, which clearly demonstrates the ability to cover short-term cash needs.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The gross profit margin for COUNTRY STYLE COOK is rather low; currently it is at 22.77%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.96% significantly trails the industry average.
  • Net operating cash flow has decreased to $5.28 million or 42.57% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

You can view the full analysis from the report here: Country Style Cooking Restaurant Chain Co L Ratings Report

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At the close, Red Lion Hotels ( RLH) was down $0.14 (2.3%) to $5.73 on light volume. Throughout the day, 6,254 shares of Red Lion Hotels exchanged hands as compared to its average daily volume of 14,600 shares. The stock ranged in price between $5.71-$5.83 after having opened the day at $5.81 as compared to the previous trading day's close of $5.86.

Red Lion Hotels Corporation, a hospitality and leisure company, owns, operates, and franchises hotels under its Red Lion Hotels, Red Lion Inns & Suites, and Leo Hotel Collection brands. It operates in three segments: Hotels, Franchise, and Entertainment. Red Lion Hotels has a market cap of $116.0 million and is part of the services sector. Shares are down 3.1% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Red Lion Hotels as a hold. 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 and increase in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from TheStreet Ratings analysis on RLH go as follows:

  • The revenue growth came in higher than the industry average of 5.5%. Since the same quarter one year prior, revenues rose by 17.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.46, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.35, which illustrates the ability to avoid short-term cash problems.
  • RED LION HOTELS CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, RED LION HOTELS CORP continued to lose money by earning -$0.43 versus -$0.58 in the prior year.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, RED LION HOTELS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for RED LION HOTELS CORP is currently extremely low, coming in at 14.38%. Regardless of RLH's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 12.85% trails the industry average.

You can view the full analysis from the report here: Red Lion Hotels Ratings Report

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

Full House Resorts ( FLL) was another company that pushed the Leisure industry lower today. Full House Resorts was down $0.02 (2.5%) to $0.97 on light volume. Throughout the day, 34,596 shares of Full House Resorts exchanged hands as compared to its average daily volume of 78,900 shares. The stock ranged in price between $0.95-$1.00 after having opened the day at $0.97 as compared to the previous trading day's close of $1.00.

Full House Resorts, Inc. owns, develops, manages, and invests in gaming-related enterprises. Full House Resorts has a market cap of $18.5 million and is part of the services sector. Shares are down 64.5% year-to-date as of the close of trading on Friday. Currently there are 2 analysts who rate Full House Resorts a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Full House Resorts as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.

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Highlights from TheStreet Ratings analysis on FLL go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 20116.7% when compared to the same quarter one year ago, falling from -$0.04 million to -$8.49 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, FULL HOUSE RESORTS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $0.66 million or 63.99% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • FULL HOUSE RESORTS INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, FULL HOUSE RESORTS INC swung to a loss, reporting -$0.21 versus $1.49 in the prior year. This year, the market expects an improvement in earnings (-$0.11 versus -$0.21).
  • This stock's share value has moved by only 63.93% over the past year. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

You can view the full analysis from the report here: Full House Resorts Ratings Report

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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