06Jan3:28 pmEST

Here's the Thing...

Software is rather impressive today as we (and many others) noted earlier. Biotechs reversed back to green, as did the indices. 

But here's the thing...

Something slipped through the cracks today which normally would have garnered more attention. 

Yum Brands (YUM, owner of KFC, Taco Bell, etc.) is going to buy Habit Burger Grill (HABT) at $14 per share, which has HABT up by more than 32% today. This is a pretty big-time M&A deal in the fast/casual segment of restaurants, and may be just the beginning of some long-awaited deals. 

By now, we know that M&A has become more ubiquitous in the biotech, software, and chip sectors. But if we see an uptick in the restaurant space I expect it to add plenty of juice to various names in play. CMG has been a tried and true leader for a while now, as has WEN. 

But I suspect the likes of SHAK and WING will prove to be enticing for some of the larger players, as both currently have a market cap in the $2-$3 billion range. 

Wingstop is my horse in the race now, with a stop-loss below $82. On the monthly chart, updated below, it is hard not to like the highlighted bull flag after a strong multi-year prior advance. I do not believe WING is done yet. In fact, there may be plenty of sauce left in the cup--Let's see just how spicy it is. 

Indeed, there is plenty of growth potential for the firm to spread its brand across the country, and a decent short position to squeeze, too. 

And with YUM showing it is looking to spread its brand into fast-casual burgers with HABT, who is to say that another large player may not look to spread its...ahem...wings? 

The Linchpin for This Market... The Party, The Hangover, The...


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