Fast Food Stocks Looking Tasty
The fast food and restaurant groups didn’t get much help from Yum Brands (YUM) last night. That stock, purveyor of the Taco Bell, KFC and Pizza Hut chains, is currently trading down nearly one and one-half points after earnings. However, many sector stocks are showing signs of life, following a three-month consolidation period, and could head into a string of breakouts in the next two to four weeks.
Dineequity (DIN), best known for its Applebee’s and IHOP brands, is an interesting play in the group. It rocketed off a multiyear low in March and jumped up to 36 in late April. It then dropped into a well-structured symmetrical triangle that’s still in place.
Price is hugging the upper end of this pattern, which is often a precursor to a healthy breakout. The company reports earnings on July 28th.
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