Ari Wald of Oppenheimer and Mark Tepper of Strategic Wealth Partners spoke on CNBC's "Trading Nation" about the fast-food stocks.
Wald said he has been bullish on the sector and he thinks these stocks are going to continue to move higher along with the rest of the market. Wald analyzed the daily chart of McDonald's Corp (NYSE: MCD) and he concluded that there was no damage done to the uptrend. He expects the stock to continue to move higher.
See Also: What To Make Of Wendy's Breakfast Expansion
Wendys Co (NASDAQ: WEN) was downgraded by Cowen on concerns about the company's latest attempt to offer breakfast. Tepper is concerned about Wendys because it tried to offer breakfast three times before and it failed. He thinks that entering the breakfast space is a distraction for the company, both from the business perspective and financially. It's margin dilutive and it cuts off the free cash flow.
Tepper prefers McDonald's. He said it's the cheapest stock in the sector and it's a good defensive play.
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