Sector Analysis: Restaurants

The restaurant sector has been on fire over the past two months. On the sector chart below we can see a break out at 775 and made a 50 point rise with limited pullbacks. Finally, we have a pullback to the 20 day MA, making this an attractive entry point. Below are my eight favorite restaurant stocks, all of which are among the strongest in the sector: YUM, WEN, DAVE, BWLD, CMG, JBX, SONC and DRI. All of these stocks have made parabolic moves to the upside, so pick your entry points wisely.