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5 Hot Restaurant Stocks Still Within Reach: Investing Action Plan

Shares of Dunkin' Donuts and Baskin-Robbins parent Dunkin' Brands are just below a buy point. (Dunkin Donuts)

Here's your Investing Action Plan for Friday: what you need to know as an investor for the coming day.

With shares of McDonald's (MCD), Wendy's (WEN) and Dave & Buster's (PLAY) at or near record highs, the surging restaurant sector may seem like cold leftovers for investors who avoid overextended stocks. But fresh opportunities are still out there.

Stocks To Watch

Shares of Yum Brands (YUM) were up 0.2% at 72.08 in late-afternoon trading on the stock market today but near the high end of its buy zone, which tops off at 72.53. Although Yum recently spun off its Chinese operations, the company is seen riding the strength of its Taco Bell chain.

Burger King and Tim Hortons parent Restaurant Brands (QSR) was up 0.5% at 60.84, near the 60.98 upper limit of its buy zone.

Dunkin' Donuts and Baskin-Robbins parent Dunkin' Brands (DNKN) rallied 1.4% to 57.44, just below a 57.90 entry.

BJ's Restaurants (BJRI) edged up 0.5% to 46.05, closing in on a 47.65 buy point, and Shake Shack (SHAK) ticked 0.4% higher to 38.05, heading toward a 39.80 entry.

Meanwhile, watch for these profit-taking sell thresholds for the following stocks: McDonald's (156.12), Wendy's (17.48), Dave & Buster's (70.02) and Darden Restaurants (DRI) (92.65).

Economic Indicators

The Commerce Department will report durable-goods orders for April at 8:30 a.m. ET, and analysts see a 1% drop vs. March but a 0.2% uptick in core capital goods orders.

The second take to the Q1 GDP report is also due at 8:30 a.m., and annualized growth is seen being revised up to 0.8% from a prior reading of 0.7%.

The final reading of the University of Michigan consumer sentiment index for May will be out at 10 a.m., and analysts expect it to dip to 97.6 from an initial estimate of 97.7.