BMO Capital initiated stock coverage of  McDonald's (MCD) - Get McDonald's Corporation (MCD) Report and Wendy's (WEN) - Get Wendy's Company Report with "Outperform" ratings for both.

The firm issued a $17 price target for Wendy's, and a $153 price target for McDonald's. 

Shares of Wendy's were higher over 2% during mid-morning trading following the upgrade. The company presents investors an "attractive opportunity" because of its "defensible" premium positioning and the prospects of it achieving long-term goals following structural and business model enhancements, BMO Capital analyst Andrew Strelzik said. 

Shares of McDonald's were also higher following the upgrade. Strelzik views the firm as a premium brand in the early stages of mounting a comeback with a favorable risk/reward profile. 

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