Three types of raw tomatoes -- red plum, red Roma and round red tomatoes -- grown in 17 states are voluntarily being pulled of the shelves and menus of McDonald's (NYSE: MCD), Wal-Mart (NYSE: WMT), Burger King (NYSE: BKC), Kroger (NYSE: KR), Outback Steakhouse, Winn-Dixie (NYSE: WINN) and Taco Bell, among others. In fact, "McDonald's has stopped serving sliced tomatoes on its sandwiches as a precaution, but will continue serving grape tomatoes in its salads because no problems have been linked to that variety."

Similarly, Burger King, Yum Brands Inc. (NYSE: YUM) restaurants, Darden Restaurants (NYSE: DRI), and Chipotle Mexican Grill Inc. (NYSE: CMG) have also removed the contaminated brands from their menus across the U.S., and some, like Burger King, in Canada, Puerto Rico and some other Caribbean islands as well. Many left the non-contaminated brands on the menu.

Getting salmonella is not fun. It's a bacteria that lives in the intestinal tracts of humans and most infected people suffer fever, diarrhea and abdominal cramps starting 12 to 72 hours after infection and lasting for 4-7 days. The FDA hasn't found the source of the contamination, although it usually means contact with animal feces.

Tomatoes are probably the healthiest thing in many fast food sandwiches and on many menu items, but I guess not when they are contaminated. It's just too bad that this happened in the midst of the "good tomatoes" season. After eating tomatoes that taste and feel like plastic all winter long, it's a treat to have those summery sweet tomatoes. I guess we'll just have to stick to the non-contaminated brands and cooked tomatoes dishes like tomato-based pasta sauces.

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Referring to his long-recommended position in YUM! Brands (NYSE: YUM), Louis Basenese exclaims, "I've spent 1,308 days tracking its price movements and written 11,239 words expounding its virtues."

Indeed, the associate Investment Director for The Oxford Club states, "If I could only recommend one stock to own for the next decade, hands down YUM! Brands would be the one."

"YUM! Brands, operator of KFC, Pizza Hut and Taco Bell, is quietly transforming itself into an international juggernaut. Today, roughly half of its operations and profits come from outside our borders. Tomorrow (okay, not that quickly, but soon), more than two thirds of its business will be based outside the United States.

"And the transition and timing couldn't be more perfect. More than half the word's investable market capitalization is now outside the United States. And that percentage keeps growing.

"Approximately 95% of the world population lives outside the United States. And roughly 71% of world gross domestic product is now generated outside the our borders. And that percentage is growing too.

"In other words, it's hardly a time to have a 'home-country' bias if you're an American. The future of business and the best growth opportunities squarely reside in international markets, especially in China. And in the end, YUM! represents an easy way to embrace this reality.

"With it, we get all the China growth we want, without all the China risk. We get all the international growth we want, without all the risk. And we get a history of doubling our money every three-and-a-half years.

"Such growth and reliability is hard to come by. So grab it while you can... and I'll check back in 10 years to let you know how we've done. Every investor should own a few shares."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

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McDonald's (NYSE: MCD) announced its same-store sales results for the month of April Thursday, and the data indicate a healthy fast-food business ("healthy fast food" -- isn't that an oxymoron?).

Global comps as a whole increased 5%. Comps for European locations increased 6.3%, and the Asia/Pacific/Middle East/Africa segment saw a 7.8% rise in same-store sales. McDonald's restaurants in the States increased an anemic 2%. The weak domestic sales really need to be addressed so that they can pull more weight and add to the cool story that is McDonald's.

The stock has been a pretty decent performer over the last several months, rising over 6% over the three-month timeframe, and over the one-month period, it is up over 7%. And the longer-period returns from the past are even more impressive. Imagine how McDonald's stock would perform if management figured out how to get people to visit the U.S.'s Golden Arches more often. I suppose April's performance should be praised since March saw a decline in U.S. comps, as this article makes plain, but that depreciation was the first one in five years, and that says to me that McDonald's needs to be careful.

It's all about the marketing, of course. There are a lot of choices out there -- Burger King (NYSE: BKC), Wendy's (NYSE: WEN) and Yum! Brands (NYSE: YUM) -- so I think promotion of the brand is key. Some will disagree and say that menus and pricing are the big drivers -- they are important, don't get me wrong, but perhaps McDonald's needs to take a cue from Burger King and its campaign with the creepy-king thing -- those commercials are clever. Still, if this comps reports says anything, it says that you shouldn't count the clown out -- McDonald's is a blue-chip stock that is near a 52-week high, and not only is it a great long-term/core holding, but it's also quite possibly an interesting shorter-term idea as well.

Disclosure: I don't own shares in any company mentioned here; positions can change at any time.

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This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

How to compare the two dominant pizza brands, Yum! Brands Inc.'s (NYSE: YUM) Pizza Hut vs. Domino's Pizza Inc. (NYSE: DPZ)?

Most annoying ads? The wing man series by Pizza Hut is a recent annoyance, but Domino's still, in my mind, has not lived down the ignominy of its Noid commercials in the 1980s.

Most obscene side-dishes? What in the hell are dipping strips? Like we don't realize they're just pizza dough with goo indistinguishable from the plaque clogging our arteries. Bad Pizza Hut! Bad!

Size? Pizza Hut -- 12,800 outlets in 90 countries. Domino's -- 8,624 outlets in 55 countries.

Corporation? Domino's is dwarfed by Yum! Brands, owner of Pizza Hut as well as Taco Bell and KFC.

Taste? (Subjectivity warning) I'm rarely in the mood for tomato sauce smeared on cardboard, so I'm not a regular Domino's customer. In fact, I don't accept the notion that delivery pizza is anything but the sad yokel cousin of the real, hot from the oven pie. Since Domino's made its nut in the delivery business while Pizza Hut has sit-down locations, on this factor alone I declare the Hut the clear winner in this battle of the brands.

Vote in our poll for Pizza Hut or Domino's as your preferred brand, and let us know in the comments why you love it.

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This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

Ahhhh... Kentucky Fried Chicken from the Colonel. Then it became KFC. Now it's Kentucky Fried Chicken again. Any way you slice it, they have some awfully good chicken and the most delicious gravy ever. Please don't tell me how many calories I'm eating or whether I'm next on the heart attack list thanks to all the fat.

Kentucky Fried Chicken is one of multiple restaurants under the Yum! Brands (NYSE: YUM) umbrella, which also includes Pizza Hut, Taco Bell, and Long John Silver's. The menu has changed a bit over the years, but the mainstay of KFC will always be the chicken dinners. You can currently get your chicken in original or extra crispy. Or you can choose the more modern chicken strips or popcorn chicken.

Popeye's Chicken, owned by AFC Enterprises (NASDAQ: AFCE), refers to itself as "New Orleans Chicken." With over 1,900 stores open at the end of 2007, Popeye's provides a little more variety in addition to the standard chicken meals. Of particular interest are the "Louisiana Legends," which include Creole, Jambalaya, Etoufee, and Smothered Chicken.

For a true chicken experience, I think KFC is the way to go. But if you prefer to spice it up and get a little New Orleans style food with your chicken, Popeye's is your brand of choice!

Vote in our poll for KFC or Popeye's as your preferred brand, and let us know in the comments why you love it.

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McDonald's (NYSE: MCD) may be the big brand name in the fast-food industry, but don't discount Burger King (NYSE: BKC). The King reported its fiscal Q3 numbers on Thursday, and they were pretty regal indeed.

Revenues increased 10%, and earnings per share did even better, rising 20% to 30 cents (that beat earnings by three pennies, says Briefing.com). Now, when talking about retail stores and fast-food joints, the issue of same-store sales always comes up, since it's such an important element to consider (be sure to keep in mind that comps must always be put in an overall context, especially if you are only measuring a one-month timeframe). Global comps increased 5.8% for the quarter, a good showing for Burger King which wants to become a force to be reckoned with around the world. The domestic side of things isn't doing too badly either as comps in the United States and Canada moved up 5.4%. Restaurant margins, however, decreased due to the challenging commodity-cost environment we all live in nowadays. Otherwise, I see these earnings as very positive for Burger King, and I am bullish on the stock.

One thing I love about this company is its catchy advertising campaigns. Seriously, that King character is creepy, but it injects an edge to the commercials that the teenage/college-age crowd really respond to (although, ironically enough, I'm sure a lot of folks find Ronald McDonald, a clown, rather creepy as well). Burger King knows how to market itself and how to catch the attention of the youth who love to stock up on fast food at the drive-thru. Yep, the Big Mac is getting a lot of competition from the Whopper, and these earnings results show that Burger King is indeed differentiating itself through an innovative image. McDonald's, Wendy's (NYSE: WEN), and Yum! Brands (NYSE: YUM) need to watch out for the King (I'm going to have nightmares tonight for sure).

Disclosure: I don't own shares in any of the companies mentioned here; positions can change at any time.

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This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

Businesswise, it's no real competition between Subway and Quiznos. Subway, the number 1 sub sandwich chain, claims to have more than 29,000 locations in 86 countries, earning more than $11 billion in 2007. Quiznos, on the other hand, has more than 5,000 locations in 20 countries, earning $130 million in 2004, making it a distant number 2. In fact, Subway is the third largest fast-food chain globally after Yum! Brands (NYSE: YUM) (Taco Bell, Pizza Hut, KFC, etc.) with 34,000 locations and McDonald's (NYSE: MCD), with 31,000 locations.

Both Subway and Quiznos are privately owned, franchise fast-food chains. While Quiznos is a limited liability company controlled by chairman Rick Schaden and his family, Subway is a wholly owned subsidiary of Doctor's Associates, Inc., a company founded in 1965 by Fred De Luca and Dr. Peter Buck specifically to oversee the Subway chain of restaurants.

Subway menus vary by store. For instance, its restaurants in Muslim countries serve Halal menu, and Subway has kosher restaurants in New York, Los Angeles, Kansas City, and a suburb of Cleveland. All locations feature submarine sandwiches, ranging from four-inch "mini subs" to its three-foot giant subs. Popular sandwiches include Turkey Breast, Italian BMT, and the Subway Club. All of Quiznos' sandwiches are served toasted, and its best-sellers include the Classic Italian, the Mesquite Chicken with Bacon, the Prime Rib Cheesesteak, the Chicken Carbonara. Last fall Quzinos introduced flatbread "sammies."

When it comes to advertising, Quzinos has been all over the map, including ads featuring a man suckled at a mother wolf's teat, talking "Baby Bob" ads, a dig at its larger rival with ads featuring a "Wrong Way" restaurant -- and then there were the creepy but short-lived Spongmonkey ads. Subway's best-known spokesman is Jared Fogle, who in 1999 is said to have lost 245 pounds on a diet featuring Subway sandwiches.

But don't think that the smaller Quzinos has had no influence on Subway. In 2003, when most Subway locations switched their beverage contracts from PepsiCo (NYSE: PEP) products to Coca-Cola (NYSE: KO) products, Coca-Cola helped pay for the initial rollout of toaster ovens to Subway restaurants in North America, This allowed customers the option to have sandwiches toasted, in response to increased competition from Quiznos.

But the real competition is not between one company and another, but between their product offerings. Who has the tastiest offerings? Who provides the best value? Vote in our poll and let us know what you think.

Vote in our poll for Subway or Quiznos as your preferred brand, and let us know in the comments why you love it.

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Here are some highlights from this past week's earnings coverage from BloggingStocks:

• American Axle & Manufacturing Holdings Inc. (NYSE: AXL) reported a strike-related Q1 loss.
• Arch Coal Inc. (NYSE: ACI) Q1 profit tripled on increased demand and higher prices.
• Boeing Co. (NYSE: BA) posted better-than-expected earnings despite Dreamliner delays.
• Coach Inc. (NYSE: COH) better-than-expected quarter didn't impress Jim Cramer.
• ConocoPhillips (NYSE: COP) reported Q1 earnings and revenue above analysts' forecasts.
• Delta Air Lines Inc. (NYSE: DAL) reported a big loss on a one-time charge and fuel costs.
• Dow Chemical Co. (NYSE: DOW) posted a smaller-than-forecast profit drop and predicted a good Q2.
• EI DuPont de Nemours & Co. (NYSE: DD) Q1 earnings rose 26% but missed expectations.
• Ford Motor Co. (NYSE: F) surprised Wall Street by swinging to a profit in the first quarter.
• Goodyear Tire and Rubber Co. (NYSE: GT) easily surpassed analyst estimates for the first quarter.
• Halliburton Co. (NYSE: HAL) Q1 earnings and revenue rose due to international growth.
• Hershey Co. (NYSE: HSY) profit fell but was in line with analysts' expectations.

• JetBlue Airways Corp. (NASDAQ: JBLU) reported a narrower-than-expected loss in the first quarter.
• Lockheed-Martin Corp. (NYSE: LMT) posted solid Q1 results and raised its full-year outlook.
• McDonald's Corp. (NYSE: MCD) easily beat Q1 estimates due to gains overseas.
• Northwest Airlines Corp. (NYSE: NWA) reported a larger-than-expected loss due to fuel costs.
• PepsiCo Inc. (NYSE: PEP) posted solid Q1 results that were merely inline with expectations.
• Pepsi Bottling Group (NYSE: PBG) earnings were flat, but beat Wall Street expectations by a penny.
• Potash Corp. of Saskatchewan Inc. (NYSE: POT) posted strong results on strong demand and price hikes.
• Sonoco Products Co. (NYSE: SON) reported better-than-expected Q1 results and revised guidance.
• Starbucks Corp. (NASDAQ: SBUX) preliminary Q2 results were lower than analyst's expected.
• 3M Co. (NYSE: MMM) beat earnings expectations and reaffirmed its guidance.
• UAL Corp. (NASDAQ: UAUA) posted a worse-than-expected Q1 loss on rising fuel prices.
• US Steel Corp. (NYSE: X) better-than-expected quarter didn't impress Jim Cramer.
• Yum! Brands Inc. (NYSE: YUM) Q1 profits soared on overseas strength, and raised its guidance.

Also, Jim Cramer discusses "crummy lenders" and Jonathan Berr wonders if Ford's turnaround is for real. Joseph Lazzaro considers Citigroup Inc. (NYSE: C) as a barometer of the economy. One analyst thinks financials may have hit bottom and it may be time to buy, and Jon Ogg looks at what short sellers are making of tech stocks. Ted Allrich discusses what to sell/what to buy.

Upcoming results to watch for include Verizon Communications (NYSE: VZ), Tyson Foods (NYSE: TSN), CBS Corp. (NYSE: CBS), Countrywide Financial (NYSE: CFC), U.S. Steel Corp. (NYSE: X), Office Depot (NYSE: ODP), General Motors (NYSE: GM), Procter & Gamble (NYSE: PG), Kraft Foods (NYSE: KFT), Starbucks (NASDAQ: SBUX), Time Warner (NYSE: TWX), Comcast (NASDAQ: CMCSA), Exxon Mobil (NYSE: XOM), and Chevron (NYSE: CVX).

Visit AOL Money & Finance for more earnings coverage.

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YUM! Brands (NYSE: YUM) is recently up $1.88 to $40.37.

YUM reported Q1 revenues of $2.41 billion versus consensus estimates of $2.35 billion.

Stifel Nicolaus says: "China continues to prove it's the crown jewel in the YUM business portfolio."

YUM call option volume of 1,924 contracts compares to put volume of 4,242 contracts. YUM May option implied volatility of 27 is below its 26-week average of 33 according to Track Data, suggesting decreasing movement.

Options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Yum! Brands (NYSE: YUM) reported Q1 numbers Tuesday after the bell, and the company came through with double-digit growth on the bottom line. Net sales increased 8%, and earnings per share, adjusted for special items, increased 19% to $0.42.

There's a lot of cool stuff in this report that shareholders will view in a positive light. The international story for Yum! is a good one, with operating profit for this part of the company increasing 18%. China continues to be a strong territory for the KFC, Taco Bell, and Pizza Hut brands -- as many have pointed out, Yum! is a great way to gain exposure to this market. And how about this -- management saw fit to buy back shares of the company to the tune of almost a billion bucks! That says something to shareholders, as does the increased guidance. Granted, Yum! upped the per-share expectation by only a couple of pennies to $1.87 (excluding items), but that's still the right direction, isn't it? Also, according to Briefing.com, the company beat Wall Street's expectations by two cents.

Yum!, which competes with McDonald's (NYSE: MCD), Burger King (NYSE: BKC), Wendy's (NYSE: WEN), and all manner of neighborhood eateries, needs to continue the good fight on the home front. It reversed a negative same-store sales trend this past quarter, but management must not rest on this nice stat -- Yum! must explore better marketing campaigns and branding tactics to keep the comps headed higher. Yum!'s stock is not far from a 52-week high, but I'm currently bullish on its prospects.

Disclosure: I own none of the companies mentioned here; positions can change at any time.

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"The Olympics have long been a boon to stock markets of host countries," notes Tony Sagami, a leading global stock advisor with a noted specialty in Asian markets.

In his Asia Stock Alert newsletter, he notes, "I believe the chief beneficiaries of the Olympic Games will be consumer and travel-related stocks. And within these sectors, I've chosen six stocks poised to bring home Olympic gold from Beijing."

"We saw a 19% gain in the Spanish stock market in the 12 months before the 1992 Barcelona Olympics, and the 27% gain in the Greek stock market in the year before the 2004 Athens Olympics. And those countries were not growing at a fraction of the breakneck pace that China is. So it wouldn't surprise me to see the Chinese stock market do even better.

Olympic Gold Winner #1: China Mobile (NYSE: CHL):

"It seems like every person I see in China has a cell phone glued to their ear. And the cell phone is not just the primary voice communication medium in China; it is also the common way most Chinese access the Internet and email. In China, the cell phone 'is' the personal computer.

"Heck, most new high-rise condominium and apartment complexes being built in China aren't even wired for land lines. Once you understand the device's role, you'll see why China Mobile has more cell phone users (360 million) than the U.S. has people. I expect a lot of cell phone calls and text messages during the Beijing Olympics!

Olympic Gold Winner #2: Focus Media (NASDAQ: FMCN):

"China is booming but most Chinese still can't afford TVs, personal computers, or cars. Because of that, the only way for companies to reach those consumers is through billboards and video monitors strategically placed in heavily traveled areas like elevators, train stations, and bus stops.

"Focus Media is the dominant advertising firm in China. So every company that wants to reach people attending or watching the Beijing Olympics will be spending millions on Focus Media ads.

Olympic Gold Winner #3: Home Inns (NASDAQ: HMIN):

"While most affluent foreigners will stay in fancy western hotel chains like the Ritz Carlton, the more budget conscious travelers - like me - will be checking into one of these spotlessly clean, bargain-priced rooms at the fastest-growing hotel chain in China.

"At less than $40 a night, Home Inns was running at a 90%-plus occupancy rate, but they are already sold out for the Olympics at triple the price. What's more, the company's tremendous value proposition will make it a big, big winner for many years after the Olympics.

Olympic Gold Winner #4: CTrip.com (NASDAQ: CTRP):

"CTrip is China's largest travel agency and odds are good that it will be handling the hotel and airline reservations for many Chinese travelers.

"In fact, business is already skyrocketing ... and the Olympics are six months away. CTrip recently reported its quarterly results and they were spectacular: A 52% increase in revenues and a 58% increase in profits. That's an amazing growth rate and yet CTrip only sells for 33 times earnings.

"Plus, American investors still don't get the idea that Ctrip has a unique and proprietary payment system in a country where credit cards are close to nonexistent.

Olympic Gold Winner #5: Yum Brands (NYSE: YUM):

"Hungry visitors are going to swarm Yum's restaurants during the Summer Games. A lot of hungry travelers are going to be walking around Beijing because they can't read Chinese and aren't willing to eat the 'mystery meat' being offered to them. Heck, I always utter a huge sigh of relief whenever I see the unmistakable logo of the 2,000 KFC and Pizza Huts peppered around China.

"Many KFC and Pizza Huts already have lines snaking around the block, but I bet those stores will be packed morning, noon, and night during the Olympics. You better believe that Yum Brands will be making some very big profits during the Summer Games.

Olympic Gold Winner #6: New Oriental Education (NYSE: EDU):

"Beijing is going to be flooded with foreign visitors and very few of them will speak Mandarin. That's why any Chinese worker with even basic English skills is going to be in very high demand ... and very well paid.

"That opportunity isn't lost on the Chinese and they are signing up in droves for basic English classes at New Oriental Education. And while the payoff at the Olympics may be immediate, the long-term payoff for acquiring English skills is to the moon. That means plenty of future business for EDU.

"The pullback in Chinese shares is opening up a great opportunity. I am not suggesting that you rush out and buy all of these stocks today. As always, you should do your own research.

"And while weakness could continue in the short term, it is also creating what looks like a great long-term opportunity. After all, the Chinese economy may be the most powerful economic phenomenon in history. And when you throw fuel on the fire by adding in the 2008 Olympic Games in Beijing, the country's stock market could explode with potential."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.

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MOST NOTEWORTHY:

• Morgan Stanley initiated Analog Semiconductors with an In Line rating. The firm assumed National Semiconductor Corp (NYSE: NSM) with an Overweight rating and $26 target and is the firm's top pick; Analog Devices (NYSE: ADI) and Linear Tech (NASDAQ: LLTC) were initiated with Equal Weight ratings and a $32 target and $34 target, respectively.
  
• Barrington believes OrthoVita (NASDAQ: VITA) is the market share and technological leader of the biomaterials market. The firm assumed shares with an Outperform rating and $4 target.
  
• Canaccord Adams believes First Solar's (NASDAQ: FSLR) management and business model are among the best of any PV company and that execution has led to strong profitability plus a successful aggressive capacity ramp. Shares were started with a Buy rating and $325 target.

• Morgan Stanley initiated Yum! Brands (NYSE: YUM) and Domino's Pizza (NYSE: DPZ) with Equal Weight ratings and targets of $40 and $15, and also initiated McDonald's (NYSE: MCD) and Burger King (NYSE: BKC) with Overweight ratings and targets of $65 and $34.
  
• Lehman initiated Alcoa (NYSE: AA) with an Overweight rating and $44 target.

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CKE Restaurants (NYSE: CKR) reported earnings for the fourth quarter yesterday after the bell. Total revenue decreased 3% for the quarter, and net income from continuing operations was $0.00 per diluted share, which wasn't too good in comparison to last year's number, which was $0.17 per diluted share. Total revenue was flat for the year, and net income from continuing operations was $0.57 per diluted share versus $0.77 per diluted share in the previous fiscal year.

CKE Restaurants, which operates the Carl's Jr. and Hardee's brands, did not impress analysts, as earnings expectations for the quarter were missed by two pennies. I myself wasn't too impressed with the entire report. Same-store sales increased 0.9% at Carl's Jr. and 2% at Hardee's for 2007 -- I'm not going to jump up and down over that bit of news. In addition, costs are up because of inflationary pressures, and revenues have obviously been challenged. There's not a lot that I like about this story.

CKE's stock is certainly on the lower end of its 52-week range, but I can't say it is necessarily cheap; it closed yesterday at $12.45 -- the high for the year on the stock is $23.24. This is a situation that calls for an old standby: "There are better opportunities out there in this space." For me personally, if I'm looking at the burger business, I'm way more likely to consider a McDonald's (NYSE: MCD), a Burger King (NYSE: BKC), or a Wendy's (NYSE: WEN) before I entertain CKE as an investment idea. Although they don't do burgers (so far as I know), I'd even look at a Yum! Brands (NYSE: YUM) before CKE. These companies have better brand equities in my estimation. CKE may turn itself around, but I just wasn't impressed by my look at its data.

Disclosure: I own none of the companies mentioned here; positions can change at any time.

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MOST NOTEWORTHY:

• Rodman & Renshaw upgraded Genentech (NYSE: DNA) to Outperform from Market Perform citing the FDA's approval of Avastin in mBC.
  
• Jefferies raised ESS Technology (NASDAQ: ESST) to Hold from Underperform to reflect the offer from Imperium Partners.
  
• Citigroup upgraded shares of SemGroup Energy (NASDAQ: SGLP) to Buy from Hold on valuation, as they believe the significant accretion expected from the partnership's recent asphalt terminal acquisition is not priced into the stock.

• Yum! Brands (NYSE: YUM) was raised to Buy from Neutral at UBS.
  
• RBC Capital upgraded Juniper (NASDAQ: JNPR) to Outperform from Sector Perform.
  
• Goldman raised its rating on BJ Services (NYSE: BJS) to Neutral from Sell.

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• General Motors (NYSE: GM) was downgraded by Deutsche Securities from Buy to Hold. Shares are down nearly 2% in premarket trading.
• YUM! Brands (NYSE: YUM) was upgraded by UBS from Neutral to Buy.
• Genetech (NYSE: DNA) was upgraded by Rodman & Renshaw from Market Perform to Market Outperform with a $90 target price. Friedman Billings, with its Market Perform rating on DNA, upped the target price on the stock from $67 to $76. Shares are up over 8% on FDA approval of Avastin as breast cancer treatment drug.
• Motorola (NYSE: MOT) was downgraded by Oppenheimer from Outperform to Perform.

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I was checking out some of the big stock gainers from Wednesday and came across CEC Entertainment (NYSE: CEC). Good ole Chuck E. Cheese's saw its stock rally more than 24%. I decided to check out the restaurant chain's earnings report to see if the quality of the numbers equaled the enthusiasm of the market.

Gee, some of the data look like cold, leftover slices of pizza to me. Same-store sales declined 2.7% and 1.4% for the fourth quarter and full fiscal year, respectively. Total revenue for the quarter was flat at approximately $175 million, and up only around 2% to $785 million for the year. CEC reported a loss of $0.02 per diluted share for the quarter; for the year, diluted earnings per share came out to $1.76, a number which compared unfavorably to the $2.04 per diluted share booked in 2006.

There were items affecting the GAAP scenario, but for me, the top-line picture seems quite bleak. Apparently Wall Street was enamored by CEC's outlook for 2008 earnings to fall somewhere in a range between $2.15 and $2.25 per share. If the company hits the high end of that guidance, I suppose the stock might look cheap. In addition, the free cash-flow statement showed that the green stuff rose 61% by management's calculation. So, yes, CEC should probably be looked at; however, I'm not inclined to put money to work here, especially after yesterday's run-up in the share price.

I haven't been in a Chuck E. Cheese's restaurant in many, many years. I'd like to visit one soon and see how things have changed. For now, though, I'll take a wait-and-see approach on CEC in terms of its stock. I mean, there are better restaurant brands out there, am I right? Companies like McDonald's (NYSE: MCD), Burger King (NYSE: BKC), and Yum! Brands (NYSE: YUM) would be stocks I'd look to first before CEC, at least at this time.

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Chipotle Mexican Grill (NYSE: CMG) experienced some delicious growth over its fourth quarter and full-year reporting period. As the press release issued on Valentine's Day after the market closed indicated, Q4 revenues spiced up almost 32% to $288.9 million, and diluted earnings soared 61% to $0.53 per stub. For the full year, revenues jumped 32% to $1.1 billion, and diluted earnings rocketed 66% to $2.13 per share.

But was this enough to satisfy the after-hours market? Nope -- at the time of this writing, the after-hours quote on Chipotle's stock was down almost 13%. I'll give you a second or two to guess why. Got it yet? Sure you do -- even if you hadn't already read the headlines, you must have intuited that Chipotle didn't meet analyst expectations. The sacrosanct Wall Street crowd wanted a couple pennies more for the quarter.

Well, I say the Chipotle story looks pretty good from where I'm sitting. Restaurant operating margins are up, comps are up over 10% for the quarter and the year, and new stores will continue to be rolled out. Plus, operational cash flow increased 42%. Chipotle, which used to be a part of McDonald's (NYSE: MCD), is becoming a major brand in the restaurant sector, and is a strong competitor against related companies such as Burger King (NYSE: BKC), Wendy's (NYSE: WEN), and Yum! Brands (NYSE: YUM).

Yes, economic times will be difficult going forward, as Ben Bernanke has warned, but I've got a sneaking suspicion Chipotle Mexican Grill's stock will recover from the recent pullback from its 52-week high of better than $155.

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YUM! Brands (NYSE: YUM) closed at $34.42 Monday.

Calyon Securities says: "To leverage its extensive local infrastructure capabilities and broaden its business base in China, YUM is rolling out a new Chinese food format in China: East Dawning."

YUM option implied volatility of 36 is above its 26-week average of 33 according to Track Data, suggesting larger movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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