Yum! Brands is making another attempt at breaking through its 2022 highs after eighteen months of consolidation. And traders are wondering whether its earnings report before the bell on Wednesday will be a catalyst for the bulls. 🤔
Competitors like McDonald’s and Restaurant Brands International are also sitting near all-time highs, with the former already reporting and the latter expected on August 8th. As a result, these stocks are on traders’ and investors’ radars. 🧭
Meanwhile, one of the company’s main brands is currently under fire from consumers who feel its advertising has deceived them. H/T to Rob Freund on Twitter for bringing this false advertising class action lawsuit against the company to our attention. 👀
The entire lawsuit is available here but references pictures of the product advertised vs. what a typical customer allegedly receives. Specifically, part of the lawsuit states that “Taco Bell materially overstates the amount of beef and/or ingredients contained in its advertisements for the Overstated Menu Items by at least double the amount.”
The class action lawsuit is more of a funny aside than a major business catalyst. But overall, the market will be watching Wednesday’s earnings to see if this chart can ultimately break out to new all-time highs. If it does, the next round of tacos is on the bulls! 🌮