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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At the close, Lakes Entertainment ( LACO) was down $0.39 (4.3%) to $8.76 on heavy volume. Throughout the day, 20,520 shares of Lakes Entertainment exchanged hands as compared to its average daily volume of 9,000 shares. The stock ranged in price between $8.40-$9.25 after having opened the day at $9.13 as compared to the previous trading day's close of $9.15.

Lakes Entertainment, Inc. develops, finances, manages, and owns casino properties in the United States. Lakes Entertainment has a market cap of $121.9 million and is part of the services sector. Shares are up 36.1% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Lakes Entertainment 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 also find weaknesses including disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on LACO go as follows:

  • LACO's revenue growth has slightly outpaced the industry average of 4.5%. Since the same quarter one year prior, revenues slightly increased by 3.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • LACO's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 13.92, which clearly demonstrates the ability to cover short-term cash needs.
  • After a year of stock price fluctuations, the net result is that LACO's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. 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.
  • 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, LAKES ENTERTAINMENT 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 -$0.98 million or 66.55% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, LAKES ENTERTAINMENT INC has marginally lower results.

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

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One Group Hospitality ( STKS) was another company that pushed the Leisure industry lower today. One Group Hospitality was down $0.46 (12.8%) to $3.14 on light volume. Throughout the day, 6,826 shares of One Group Hospitality exchanged hands as compared to its average daily volume of 12,400 shares. The stock ranged in price between $3.14-$3.53 after having opened the day at $3.53 as compared to the previous trading day's close of $3.60.

The ONE Group Hospitality, Inc., a hospitality company, develops and operates restaurants and lounges. It operates in three segments: STK Units, Food and Beverage Hospitality Management Agreements, and Other Concepts. One Group Hospitality has a market cap of $89.8 million and is part of the services sector. Shares are down 25.8% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates One Group Hospitality a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates One Group Hospitality as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins and feeble growth in its earnings per share.

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Highlights from TheStreet Ratings analysis on STKS 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 51.1% when compared to the same quarter one year ago, falling from -$0.72 million to -$1.09 million.
  • The gross profit margin for THE ONE GROUP HOSPITALITY is rather low; currently it is at 19.28%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -9.26% is significantly below that of the industry average.
  • THE ONE GROUP HOSPITALITY's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, THE ONE GROUP HOSPITALITY turned its bottom line around by earning $0.23 versus -$0.74 in the prior year. For the next year, the market is expecting a contraction of 39.1% in earnings ($0.14 versus $0.23).
  • This stock's share value has moved by only 24.60% over the past year. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • Net operating cash flow has increased to -$0.73 million or 15.70% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -14.37%.

You can view the full analysis from the report here: One Group Hospitality Ratings Report

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