Wheres The Beef?

I am old enough to remember the brilliant commercials from the late Dave Thomas. One of the best perhaps was the slogan, “Wheres The Beef”? It was in reference to the burger wars that went on between MCD and BKC, the latter before the merger with Tim Hortons. Currently, MCD looks appetizing, pun intended, as it trades between a taut range between 260-280, and on its WEEKLY chart has the look of a cup base pivot just below 282, and a breakout would carry a measured move to the very round 300 number. It trades just 2% off most recent 52-week highs, while the chart below of WEN is 11% off its own annual peak, but looks good on both a WEEKLY and daily time frame. That slight weakness translates into a nice dividend yield of 4.7%, double that of MCD. Below is the daily chart of Wendys and the WEEKLY chart has the look of potentially building the right clavicle in a bullish inverse head and shoulders pattern. A move above a 24.50 trigger would carry a measured move to 32. And on top of that one has the Peltz put, although he did mention in January he is not interested in acquiring the name.

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