By Pete Najarian, co-founder of OptionMonster

LOUISVILLE, Ky. ( TheStreet) -- Yum! Brands ( YUM) is attracting some upside option activity after seeing two upgrades in as many days.

The casual-dining company closed Wednesday up 0.77% to $36.88 and rose another 0.33% in after-hours trading. It hit a new 52-week high of $36.99 Wednesday. The stock has been trading sideways for nearly a year but could be poised to finally break out of its range, which has been mostly between $32.50 and $36.50 since April 2009.

OptionMonster's tracking systems showed that traders were focused on the April 38 strike, turning over nearly 11,000 calls against open interest of 1,114 contracts. Many of these calls -- which had averaged a grand total of 48 a day for the last month -- were bought for 45 cents to 60 cents. Overall calls in the name outnumbered total puts by about 4 to 1.

Credit Suisse on Wednesday reiterated its "outperform" rating for Yum! Brands and raised its price target to $44 from $41, while UBS upgraded the stock Tuesday to "buy" from "neutral" and lifted its target to $44 from $38. The moves on the company, which has extensive reach in Asia, followed strong international sales numbers reported by McDonald's ( MCD) earlier in the week.

For the calls purchased Wednesday to turn a profit, the shares need to gain roughly 5% by the time the options expire on April 16. The company is scheduled to release its next earnings report on April 14.

At the time of publication, Najarian owned Yum! Brands calls.

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