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Miller Tabak's Maley Shares 2 Restaurant Picks

Jayson Derrick
·2 mins read

Restaurant stocks are in focus this week after Oppenheimer analysts named Domino's Pizza, Inc. (NYSE: DPZ) as their top stock pick on Thursday.

Shares of Mcdonald's Corp (NYSE: MCD) traded at an all-time high one day prior.

Should investors take this as a sign to buy the group? The answer is no, according to Miller Tabak chief market strategist Matt Maley.

Concerned Stance: Heading into the winter months, there are "real reasons to be skeptical" about the restaurant group, Maley said Thursday on CNBC's "Trading Nation."

Markets like Australia were forced to return to some form of lockdown when the weather turned colder, he said. 

Domino's in particular is showing signs of being overbought at current levels, and there are better plays in the sector, the strategist said. 

Darden Restaurants: Shares of Olive Garden parent company Darden Restaurants, Inc. (NYSE: DRI) are down more than 16% since the start of the year, but the stock is now showing some bullish signs, Maley said.

The stock broke above its 200-day moving average and made a higher high above the June highs, he said. 

Yum Brands: Maley said he likes Yum! Brands, Inc. (NYSE: YUM) stock "a little bit better," as it could be on the "cusp of another sustained move higher."

Yum Brands has held above the key 200-day moving average and is showing early signs of rallying, he said. If the stock breaks above its June highs, it could pick up more momentum, the strategist said. 

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