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 0.3% versus the S&P 500, which was down 0.4%. Laggards within the Leisure industry included Diversified Restaurant Holdings ( BAGR), down 4.2%, Ark Restaurants ( ARKR), down 1.9%, Frisch's Restaurants ( FRS), down 2.2%, Flanigan's ( BDL), down 2.8% and Monarch Casino & Resort ( MCRI), down 2.7%.

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

Frisch's Restaurants ( FRS) is one of the companies that pushed the Leisure industry lower today. Frisch's Restaurants was down $0.59 (2.2%) to $26.51 on heavy volume. Throughout the day, 18,841 shares of Frisch's Restaurants exchanged hands as compared to its average daily volume of 4,800 shares. The stock ranged in price between $26.09-$27.92 after having opened the day at $26.91 as compared to the previous trading day's close of $27.10.

Frisch's Restaurants, Inc., together with its subsidiaries, operates full service family-style restaurants under the Frisch's Big Boy name in various regions of Ohio, Kentucky, and Indiana. As of June 3, 2014, it operated 96 restaurants and licensed 25 restaurants to other operators. Frisch's Restaurants has a market cap of $140.2 million and is part of the services sector. Shares are up 3.2% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Frisch's Restaurants 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, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on FRS go as follows:

  • The revenue growth came in higher than the industry average of 10.8%. Since the same quarter one year prior, revenues slightly increased by 2.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • FRS's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • FRISCH'S RESTAURANTS INC has improved earnings per share by 34.2% 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 two years. During the past fiscal year, FRISCH'S RESTAURANTS INC increased its bottom line by earning $1.85 versus $1.37 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 37.2% when compared to the same quarter one year prior, rising from $1.91 million to $2.62 million.

You can view the full analysis from the report here: Frisch's Restaurants Ratings Report

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At the close, Ark Restaurants ( ARKR) was down $0.46 (1.9%) to $23.62 on light volume. Throughout the day, 608 shares of Ark Restaurants exchanged hands as compared to its average daily volume of 3,200 shares. The stock ranged in price between $23.62-$24.28 after having opened the day at $24.28 as compared to the previous trading day's close of $24.08.

Ark Restaurants Corp., through its subsidiaries, owns and operates restaurants and bars in the United States. Ark Restaurants has a market cap of $81.4 million and is part of the services sector. Shares are up 6.9% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Ark Restaurants as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, compelling growth in net income, attractive valuation levels and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on ARKR go as follows:

  • The revenue growth came in higher than the industry average of 10.8%. Since the same quarter one year prior, revenues slightly increased by 9.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 57.5% when compared to the same quarter one year prior, rising from $1.45 million to $2.29 million.
  • ARK RESTAURANTS 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, ARK RESTAURANTS CORP increased its bottom line by earning $1.43 versus $1.12 in the prior year.

You can view the full analysis from the report here: Ark Restaurants 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.

Diversified Restaurant Holdings ( BAGR) was another company that pushed the Leisure industry lower today. Diversified Restaurant Holdings was down $0.20 (4.2%) to $4.57 on heavy volume. Throughout the day, 21,561 shares of Diversified Restaurant Holdings exchanged hands as compared to its average daily volume of 13,400 shares. The stock ranged in price between $4.52-$4.77 after having opened the day at $4.66 as compared to the previous trading day's close of $4.77.

Diversified Restaurant Holdings has a market cap of $124.1 million and is part of the services sector. Shares are down 8.1% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Diversified Restaurant Holdings a buy, no analysts rate it a sell, and none rate it a hold.

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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