The Dividend Daily

Fast food giant Burger King Holdings, Inc. (BKC) saw its coverage started on Wednesday as a “Buy” by analysts at Janney Montgomery Scott.

Along with the “Buy” rating, the analyst also set a $22 price target on BKC shares, which had closed at $17.67 on Tuesday.

The analyst commented that “Burger King Holdings is our top pick within our restaurant-stock coverage list,” and that “new products, such as the Steakhouse XT burger” could drive better-than expected same-store sales numbers.

Burger King shares rose 8 cents, or +0.5%, in morning trading Wednesday.

The Bottom Line
We have avoided shares of BKC since our early June coverage began last year, and shares were trading at $28.25. The company has a dividend yield of 1.41%, based on last night’s closing stock price of $17.67. The stock has technical support at the $16-17 price area. If those levels fail to hold, we could possibly see the $13 price point. If the shares can build on today’s upgrade, we see overhead resistance around the $19-$20 price levels. We would remain on the sidelines for now.

Burger King Holdings, Inc. (BKC) is not recommended at this time, holding a Dividend.com DARS™ Rating of 2.9 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.