"I've spotted an excellent opportunity to cash in on the turnaround of one of America's most visible companies -- Starbucks (NASDAQ: SBUX)," says Jim Stanton.

The quantitative analyst and contributing editor to Xcelerated Profits Report explains, "I've had my eye on a number of retail stocks for some time now, looking for signs of a potential turnaround, and Starbucks is now high on my list."

"One of the main reasons for the slide in SBUX shares from its high of $40 in November 2006 was the overly aggressive expansion plan.

"And as food and dairy prices have soared, this has led to higher operating costs. In turn, this forced Starbucks to raise prices, just as consumers were struggling from the housing slump and soaring inflation.

"And as competition from the likes of McDonalds and Dunkin Donuts has turned up the heat, Starbucks has suffered charges related to closing out unprofitable stores. But Starbucks is tackling the problems.

"I think now is a particularly opportune time to buy the world's largest fast-food company, YUM! Brands (NYSE: YUM) ," says Louis Basenese.

The associate investment director and contributing editor to The Oxford Club observes, "YUM Brands operates 35,000 restaurants under the KFC, Taco Bell and Pizza Hut brands." Here's his review of the firm's outlook, including its expanding role in China.

"For starters, YUM keeps extending its streak of impressive results. For the seventh quarter in a row it beat expectations. Earnings per share increased 16% for the quarter and 28% year-to-date. Not to be overlooked either is the fact YUM raised guidance. Again.

"This quarter, fewer than 5% of companies in the S&P 500 can boast this triple whammy (beating earnings and revenue estimates and raising guidance). Ironically, while most of the other triple-whammy stocks enjoyed hefty single- and double-digit run-ups on the announcements, YUM sold off.

"And here's where I think most investors are missing the boat, and once again focusing too heavily on the short term. Yes, YUM's in a pinch. Food costs are rising and consumers are spending less.

"I am quite confident that business students in the future will be reading case studies on the battle between Starbucks (NASDAQ: SBUX) and McDonald's (NYSE: MCD)," says value investor Charles Mizrahi.

In his Hidden Values Alert, the advisor explains, "This is a classic case of a castle with a wide moat coming under attack because the attacker believes it has caught the duke napping." Here, Mizrahi shares a fascinating over the "Coffee War."

"As background, in 1982, Starbucks had five retail stores and was selling coffee to restaurants in Seattle, Washington. It was during that year that Howard Schultz signed on to manage retail sales and marketing. After traveling to Italy, he convinced the owners of Starbucks to open a coffee bar.

"Many U.S. companies are getting a lift from strong overseas business, and McDonald's (NYSE: MCD) is no exception," says Richard Moroney, noting that overeas same-store sales are growing at roughly twice the rate seen at U.S. outlets.

"That's not to say that the firm's domestic business is stale," he adds in Dow Theory Forecasts. Indeed, he notes that the company has reported 51 consecutive months of same-store-sales growth and has been beefing up its U.S. stores with new menu items and longer operating hours.

Moroney explains, "McDonald's should continue to benefit from the ongoing rollout of new menu items, including premium salads, snack wraps, and breakfast items." The company, he notes, has been extending operating hours at some restaurants and said it wants all of its U.S. restaurants to open by 5 a.m. by 2009 to capture more of the growing fast food breakfast market.

Another key to McDonald's success, he contends, has been its willingness to shed operations and outlets that are underperforming or diverting resources from core operations. To that end, the firm sold its remaining interest in Chipotle Mexican Grill (NYSE: CMG)and agreed to sell its Boston Market chain.