McDonald's (NYSE: MCD), whose competitors include Yum! Brands (NYSE: YUM), Burger King (NYSE: BKC), and Wendy's (NYSE: WEN), isn't known for being a part of a healthy diet, no matter how much branding it's done in that area. However, it is known for delivering good earnings. That's why investors probably aren't too worried when it comes to Wednesday, the day that the fast-food behemoth is set to hand off a sack of quarterly numbers at the earnings-report drive-thru.

According to AOL Finance, McDonald's beat the street by a wide margin in the first quarter. The call was for about 70 cents per share which Mickey Dee's beat by a whopping 11 cents. The previous quarters weren't as impressive, but they were solid enough. McDonald's seems to have the game of at least matching expectations down pat, so I am confident that come Wednesday, the company's bottom line will be close to the 86 cents per share that Wall Street is looking for in the second quarter, according to Earnings.com.

If McDonald's makes the number, then it will represent growth of over 20%. Double-digit appreciation is a valuable commodity in this time period. I can't say, though, that McDonald's won't have its challenges cut out for it. After all, inflation is affecting everyone, and fuel prices theoretically could hamper the popularity of the company's valuable drive-thru asset (I used one last evening myself). But McDonald's has that famous dollar menu going for it, so even in tough times, fans of fatty foodstuffs can still afford the oily, heart-clogging grub.

Of course, the company could still report decent numbers and see a sell-off in its shares. I took a look at Yum! Brands' most recent report and found that Wall Street was none too happy about the margins. So, even though Yum! beat expectations and otherwise had a decent report, Wall Street focused on other issues. Don't get me wrong, margins are important, and investors will be watching them when McDonald's reports. But if McDonald's sees a sell-off on outlook or margins or whatever, but beats earnings and has good comps, it might be a buying opportunity for long-term investors (after they perform their own due diligence, of course). The stock isn't too far away from a 52-week high as I write this, and it has been strong over most timeframes recorded at the AOL Finance snapshot page. And the dividend yield isn't bad right now, either.

In conclusion, I'm looking for McDonald's to report double-digit bottom-line growth and to meet earnings expectations for the most part (hey, maybe the beat-by-the-proverbial penny might happen). If the company misses, I would be surprised. Margins will be something to check out, and investors will need to see what management says as far as the rough economic times are concerned. I'm not looking to trade McDonald's ahead of the earnings.

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

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Yum! Brands (NYSE: YUM), which competes with Burger King (NYSE: BKC), McDonald's (NYSE: MCD) and Wendy's (NYSE: WEN), issued its Q2 report on Wednesday. Total revenues increased 12%, and earnings per share jumped 16% to $0.45. According to Briefing.com, Yum! beat expectations by three pennies, but it didn't seem to satisfy the big guns of Wall Street. The stock was down 5% in the after-hours session yesterday.

Some reports indicate that margins are to blame here. It's true, the margins aren't as good as one would like, but the company has nevertheless succeeded in cutting some costs. I see Yum!'s quarter as a very decent one in the context of the current bear market. In fact, the company posted worldwide same-store sales growth of 4%. U.S. comps exhibited a growth rate of 2%. There is opportunity in the U.S. for Yum! in terms of marketing for its Pizza Hut, KFC and Taco Bell brands. Management needs to see if it can increase comps in this territory. International restaurants, including locations in China, continue to do well.

I like Yum! and its long-term prospects, especially for restaurants located abroad. I also like that the dividend saw a great double-digit increase during the quarter, rising by a whopping 27%. Management is therefore signaling shareholders a high level of confidence behind the brands. I'm reticent about putting new money to work in any stock right now, but I think Yum! Brands is worth a place on the watch list and a round of due diligence on a pullback.

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

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McDonald's (NYSE: MCD) has always been known for its famous French fries. Interestingly enough, though, it seems to me that the fast-food chain is becoming known these days for its coffee. I never thought McDonald's would invest as much as it has in coffee, but it looks like it's doing the right thing. According to this Bizjournals piece, McDonald's is putting its weight behind a coffee-bar initiative called McCafe. The program is being tested in various locations now and will be available nationally sometime next year.

I love the timing on this. After all, Starbucks (NASDAQ: SBUX) isn't doing so well. Not only is its stock hovering around 52-week-low territory, but the java king recently announced some store closings. That's almost unimaginable. Remember the days when every street corner needed a Starbucks? Yeah, those days are long gone. And I think McDonald's is smart in attempting to expand the brand equity of its coffee-brand portfolio. People need more of a reason to go to the palace of the hamburger-serving clown than just Big Macs these days, since the Big Mac and its various fat-saturated colleagues aren't as popular in these health-conscious times. I'm not saying drinking coffee is an exercise in life preservation, I'm just saying that it's good for McDonald's to focus on less controversial fare.

This significant foray into coffee is arguably a key reason for the company's stellar stock performance over the last few years and its competitive edge against rivals Burger King (NYSE: BKC) and Wendy's (NYSE: WEN). According to the AOL Finance snapshot, McDonald's is very much in the green for every timeframe save for year-to-date, which sees the stock down less than 1%. That's strength. McDonald's is a little below its 52-week high, and it might make for an interesting investment idea. At the very least, you can look forward to its McCafe program.

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

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Burger King (Burger King Holdings, NYSE:BRC) has made good headway recently by constructing sandwiches large enough to bring down a New York crane and marketing tied to video games and hot movies. Therefore, it would have been the last company I would expect to unveil a $190 hamburger.

Actually, the burgers aren't widely available, yet- only in one location, in West London, and only once a week, by reservation. I suppose the burger, Wagyu beef piled high with white truffles, Pata Negra ham, white wine/shallot mayo, Himalayan rock salt and a soupçon of Iranian saffron. The combo includes Cristal champagne onion straws, a limited edition bottle of Coke, and Cabernet Shiraz wine from Australia .

Emma Hall, who reported on the experience for Ad Age, found the meat 'not perfect', due to the health code's requirement that it be cooked to 165 degrees, but liked the mayo, ham and truffles. Other diners she interviewed were pleased, but mostly not $190 worth of pleased. Personally, for $190 I'd expect the King to detail my car while I ate.

This mother of all burgers was created as a PR stunt to help recast the BK brand as a higher-quality product, with proceeds benefiting a local charity. The company plans to expand the limited-time program to Spain and Germany. For now, I'll have to drown my longing in a Whopper, sans truffles, sans saffron, and Cristal-free fries.

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Dream Retirement Home Bargain Cities
The housing downturn's upside? You don't have to go overseas anymore for your dream retirement home. Here are the six best markets for deals. They include Miami, Las Vegas, Phoenix, San Diego, Tampa and Denver.
6 real estate bargains - FORTUNE
Also: Housing Prices Will Get Worst in Hard Hit Cities

'Please, I Need Money. Can You Help Me?'
In these tough times, friends may need financial assistance. When should you say yes and when should you walk away?
What to do when you're asked for financial help - Bankrate.com

One Family: In Search of a Simpler Life
Five years ago, Kathy & Josh Gunns ditched the corporate world for the family farm. They love their new life, but did it simplify their finances? Not by a long shot.
One family: In search of a simpler life - Money Magazine

World's Most Powerful Tween Stars
These tween stars earned the most money - and the most buzz - over the last year. Topping the list is 'Hannah Montana' herself Miley Cyrus followed by 'Harry Potter' Daniel Radcliffe, the Jonas Brothers, Zac Efron and Ashley Tisdale.
The World's Most Powerful Tween Stars - Forbes.com

World's Most Powerful Actors
According to Forbes' Johnny Depp is the most powerful actor in the world today. He tops Brad Pitt, Will Smith, Jerry Seinfeld and Bruce Willis.
In Pictures: The World's Most Powerful Actors - Forbes.com

World's Most Powerful Actresses
According to Forbes' Angelina Joie is the most powerful actress in the world today. She tops Cameron Diaz, Jennifer Aniston, Keira Knightly and Jennifer Lopez.
In Pictures: The World's Most Powerful Actresses - Forbes.com

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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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I always love news items like this. According to Reuters, there exists a $175 hamburger. You can find it in New York at a place called The Wall Street Burger Shoppe. Presumably, big traders would be the only ones able to afford it.

Well, for those who would even think to complain about the prices at McDonald's (NYSE: MCD), Burger King (NYSE: BKC) and Wendy's (NYSE: WEN), this $175 burger should put things in perspective. It doesn't sell a lot; the news piece states that the place moves about two dozen in any given thirty-day period. The Wall Street Burger Shoppe mostly sells $4 burgers.

But, really, this $175 burger is nothing more than genius marketing. The owners are obviously not under any illusion whatsoever that they can make a great return on capital by investing in such a pricey offering. All it's meant to do is to bring publicity to the establishment. It's obviously worked. As a way of branding, this goofy pricing scheme immediately differentiates the restaurant's brand from others. In fact, it was the stated intent of the owners to have the most expensive burger in the area. It's also a great differentiator between personalities. I mean, I think you can tell a lot about a person who is actually willing to buy this thing (and, you can certainly infer a lot about the person's net worth).

Yep, those $4 burgers seem like no cost at all compared to the $175 royal dish. Perhaps either McDonald's, Burger King, or Wendy's should leverage this example of 80s-like excess to their advantage.

If I were a commercial scribe, I'd pen an ad that makes consumers who buy this thing look, at best, ill advised, and those who choose one of the big three's value menus theoretical physicists by comparison (then again, considering some of the wacky theories theoretical physicists come up with, that might not be such an apt metaphor). I could definitely see Burger King using its ghoulish regal mascot to do a comedic mini-campaign based on such a concept.

Well, I won't be digging deep into my wallet to shell out an amount too close to two hundred bucks for my taste to enjoy one of these hamburgers. I've got to fill up my gas tank, remember...

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

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MOST NOTEWORTHY:

• RBC Capital initiated Edison International (NYSE: EIX) with an Outperform rating and $64 target citing strong rate base growth and the favorable environment at Southern California Edison.
  
• Piper assumed coverage of Animal Health International (NASDAQ: AHII) with a Buy rating and $10 target, as they believe the current valuation is attractive from long-term investors.
  
• Pacific Crest started SanDisk (NASDAQ: SNDK) with a Sector Perform rating and believes the valuation is too high following the recent strength as product margins are trending down.

• Sandler initiated Heritage Commerce (NASDAQ: HTBK) with a Hold rating and $16 target.
  
• Burger King (NYSE: BKC) was initiated with a Buy rating and $34 target at Piper.
  
• RBC Capital assumed U.S. Geothermal (AMEX: HTM) with an Outperform rating and $4 target.

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MOST NOTEWORTHY:

• Lehman upgraded Lincoln Educational (NASDAQ: LINC) to Overweight from Equal Weight based on improving student enrollment growth and valuation.
  
• Merriman upgraded Sonus Networks (NASDAQ: SONS) to Buy from Neutral on the company's strong AT&T (NYSE: T) outlook and near-term upside potential from Japan. They believe shares can trade towards the $5-$6 range.
  
• Bernstein raised Novartis (NYSE: NVS) to Outperform from Market Perform as they believe the company's diversification position it well to withstand future generic expiries.

• Goldman Sachs added Burger King (NYSE: BKC) to its Conviction Buy List.
  
• Credit Suisse upgraded Imperial Tobacco (NYSE: ITY) to Outperform from Neutral.
  
• FreightCar America (NASDAQ: RAIL) was upgraded at Jefferies to Buy from Hold.

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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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After hitting a one-year high of $29.19 in December, the stock hit a one-year low of $21.60 in January. This morning, BKC opened at $27.36. So far today the stock has hit a low of $27.35 and a high of $27.94. As of 12:30, BKC is trading at $27.73, down $0.73 (-2.6%). The chart for BKC looks bullish but deteriorating, while S&P gives the stock a positive 4 STARS (out of 5) buy rating.

For a bearish hedged play on this stock, I would consider a June bear-call credit spread above the $30 range. A bear-call credit spread is an options position that combines the purchase and sale of call options to hedge risk in case the stock doesn't do what you think but still leverage nice returns. For this particular trade, we will make a 7.5% return in six and a half weeks as long as BKC is below $30 at June expiration. Burger King would have to rise by more than 8% before we would start to lose money. Learn more about this type of trade here.

BKC hasn't been above $29.50 at all in the past year and has shown resistance around $28.70 recently. This trade could be risky if the stock continues its steady upward climb, but even if that happens, this position could be protected by resistance BKC might find around $29, where it has topped out twice in the past few months.

Brent Archer is an options analyst and writer at Investors Observer.

DISCLOSURE: Mr. Archer owns and/or controls diversified portfolios of long and short stock and option positions that may include holdings in companies he writes about. At publication time, Brent neither owns nor controls positions in BKC.

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

• Archer Daniels Midland Co. (NYSE: ADM) Q3 profits soared, beating analysts' expectations.
• Buffalo Wild Wings Inc. (NASDAQ: BWLD) strong Q1 results met analysts' expectations.
• Burger King Holdings Inc. (NYSE: BKC) reported solid Q3 results that beat Wall Street estimates.
• Chesapeake Energy Corp. (NYSE: CHK) beat expectations for the first quarter, sending shares up.
• Colgate-Palmolive Co. (NYSE: CL) posted better-than-expected Q1 results on the weak dollar.
• Corning Inc. (NYSE: GLW) beat earnings expectations and raised its guidance.
• Corn Products International (NYSE: CPO) posted record sales for the ninth consecutive quarter.
• Duke Energy Corp. (NYSE: DUK) Q1 profits met expectations but revenues beat them.
• ExxonMobil Corp. (NYSE: XOM) missed Q1 expectations due to narrower margins.
• Garmin Ltd. (NYSE: GRMN) reported lower-than-expected earnings due to slowed demand.
• General Motors Corp. (NYSE: GM) posted a smaller-than-expected loss for the first quarter.
• Herbalife Ltd. (NASDAQ: HLF) posted Q1 results and announced the resignation of the president and COO.
• Kellogg Co. (NYSE: K) beat Q1 expectations and announced a 10% dividend increase.
• Kraft Foods Inc. (NYSE: KFT) Q1 profits declined but beat analysts' expectations.
• Procter & Gamble Co. (NYSE: PG) reported better-than-expected Q1 results and raised its 2008 outlook.

• Starbucks Corp. (NASDAQ: SBUX) posted weak Q2 earnings in line with Wall Street expectations.
• Time Warner Cable Inc. (NYSE: TWC) beat Q1 expectations and reaffirmed its guidance.
• Time Warner Inc. (NYSE: TWX) posted solid Q1 results and announced a spin-off of TWC.
• Under Armour Inc. (NYSE: UA) beat Q1 expectations but lowered its full-year outlook.
• Valero Energy Corp. (NYSE: VLO) blew past Q1 EPS expectations despite despite profits plunging 77%.

Also, Jim Cramer lauds Procter & Gamble for its success in these tough times and Colgate-Palmolive for bouncing back after taking a hit. And Time Warner investors may have been looking for more than they got in the quarterly report.

Upcoming results to watch for include Anadarko Petroleum (NYSE: APC), Cisco Systems (NASDAQ: CSCO), Fannie Mae (NYSE: FNM), Molson Coors (NYSE: TAP), Walt Disney Company (NYSE: DIS), and American International Group (NYSE: AIG).

Visit AOL Money & Finance for more earnings coverage.

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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.

In this corner, the clown. After years of taking shots to the stomach, McDonald's (NYSE: MCD) was thought to be on the ropes, but has found new life in tightened operations, successful product launches, and a new aggressiveness. It's currently in training to take on the coffee-weight champ, Starbucks (NASDAQ: SBUX), in a no-holds-barred battle of the baristas.

In the other corner, the King. Burger King (NYSE: BKC), the burger chain with the creepiest ad campaign on television (what's with the young dude waking up to find the King in bed with him?) has thrived on a two-pronged approach; over-the-top menu items and movie/game tie-ins. BK hit the breakfast market hard with its enormous omelet sandwich, packing a wallop of 730 calories. Its Xbox game tie-in, a cheap game featuring the King was an enormous success, setting a trend that has been widely adopted.

Both chains are thriving as the third of the troika, Wendy's, continues to punch beneath its weight. With a three-year growth of almost 100% in its stock price, though, this bout clearing goes to the clown, on points.

Vote in our poll for McDonald's or Burger King 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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Wendy's (NYSE: WEN) finally sold the company to Nelson Peltz. The price which Peltz company Triarc paid was about $26.78 per share only a 6% premium according to the AP. One of the reasons the firm went for so little may be that there were no other buyers. The Wall Street Journal writes that "The move puts an end to the year-long saga that began when Wendy's first said it would consider a sale last April after Mr. Peltz began pressuring the chain."

Peltz has gotten a very good deal and Wendy's shareholders have not. The chain's current stock price is near its 52-week low. Over the last six months, the company's shares are down about 23% while rivals Burger King (NYSE: BKC) and McDonald's (NYSE: MCD) are up about 5%. Of course, they are the market share leaders and deserve some premium for that.

But if fast food does well, especially in a poor economy when people cannot afford more expensive restaurants, Peltz will have picked up a prize. When a recovery comes around, Wendy's could become a very nice business and the billionaire will look like a genius.

Douglas A. McIntyre is an editor at 247wallst.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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McDonald (NYSE: MCD) has issued a press release recently concerning the use of cellphone coupon marketing. The fast-food juggernaut wants its consumers to have the ability to snag a coupon whenever they desire and by
hooking up with a company called Cellfire, McDonald's is hoping it can establish a relationship with some of the
hip texters out there.

Cellphone users who download the Cellfire app can then text a certain number and receive a special code good for a specific offer. According to the release, McDonald's fans can take advantage of a free iced coffee promotion through April 27 in certain locations in Utah, Wyoming, and Nevada.

McDonald's knows we're an on-the-go society, and it obviously wants to leverage the fact that mobile devices are no longer just for talking -- we text, we play games, we surf the net, and, as I recently observed, we can even shop on Amazon on our cells (I say "we," but I should point out that I do not own a cell phone, believe it or not). However, as I stated in my previous post, I'm not so certain that Amazon's text-shopping service will take off.

In this case, though, I think consumers might indeed be apt to send a quick text and save some cash at their favorite fast-food joint. It's a simple protocol that just might inspire a significant amount of users to stop at their local Mickey Dee's establishment while running here and there. Certainly a lot of the youthful demographic will be targeted with this initiative.

I see the merit in this experiment. According to a Brandweek piece, consumer companies such as Procter & Gamble (NYSE: PG), Clorox (NYSE: CLX) and General Mills (NYSE: GIS) are also interested in coupon distribution via cellphones.

Obviously, traditional methods of distributing coupons won't disappear, but cell-phone marketing seems to me to be a great way to market to the youth and anyone who's away from home. Fast-food entities such as Burger King (NYSE: BKC) and Wendy's (NYSE: WEN), in addition to McDonald's, will benefit from an exploration of the limits of cell-phone targeted coupons.

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

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I was in a fast-food frame of mind last night, so I thought I'd check out Wendy's (NYSE: WEN) same-store sales report from last week. For the first quarter, Wendy's average same-store sales at franchise locations in the United States were essentially flat, declining by a mere 0.1%. However, in the year-ago period, the performance was a lot better, as comps increased 3.7%. Average same-store sales at company locations declined 1.6%; this compares to an increase of 3.8% in last year's quarter.

The early Easter holiday and inclement weather were sourced as reasons for the poor performance. Hmmm...not so sure about that. Wendy's might have just dropped the ball this time around. Hey, it's not easy competing with Burger King (NYSE: BKC) and McDonald's (NYSE: MCD). As a matter of fact, in the case of Burger King, you have to admit that it does have a pretty edgy marketing campaign currently supporting its brand equity (I love the company's humorous commercials).

Comps aren't everything to a fast-food chain's story, but this lackluster performance doesn't compel me to open the URL to my broker and place an order for shares of the company. Complicating things is the fact that Wendy's has expressed its desire to sell itself to a buyer. This makes the situation speculative, to me at least. For now, I'll stay away from Wendy's as a potential investment idea, but I do continue to watch McDonald's -- I've been perpetually interested in owning that one, but haven't pulled the trigger yet. I will admit, however, that Wendy's burgers are pretty cool...

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

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