3 Stocks Pushing The Leisure Industry Lower

The Leisure industry as a whole closed the day down 0.9% versus the S&P 500, which was down 0.9%. Laggards within the Leisure industry included One Group Hospitality ( STKS), down 12.8%, Lakes Entertainment ( LACO), down 4.3%, Cosi ( COSI), down 1.7%, Asia Entertainment & Resources ( IKGH), down 5.4% and Empire Resorts ( NYNY), down 5.1%.

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

Cosi ( COSI) is one of the companies that pushed the Leisure industry lower today. Cosi was down $0.02 (1.7%) to $1.14 on average volume. Throughout the day, 135,835 shares of Cosi exchanged hands as compared to its average daily volume of 150,400 shares. The stock ranged in price between $1.12-$1.24 after having opened the day at $1.17 as compared to the previous trading day's close of $1.16.

Cosi, Inc. owns, operates, and franchises fast-casual restaurants. The company offers food and beverage products for four dayparts comprising breakfast, lunch, snacking, and dinner. It also provides catering services for breakfast, lunch, and afternoon snacking. Cosi has a market cap of $57.8 million and is part of the services sector. Shares are down 27.0% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Cosi as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and weak operating cash flow.

Highlights from TheStreet Ratings analysis on COSI 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 38.0% when compared to the same quarter one year ago, falling from -$3.13 million to -$4.32 million.
  • Net operating cash flow has significantly decreased to -$5.95 million or 96.88% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • COSI INC has improved earnings per share by 29.4% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, COSI INC reported poor results of -$0.82 versus -$0.65 in the prior year.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 3.8%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, COSI INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Cosi Ratings Report

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