Fast-food stocks have been gobbled up in the past year.
"When you look at all these fast-food stocks, they've all been on fire this year. And right now, none of them are cheap," Mark Tepper, president of Strategic Wealth Partners, said Monday on CNBC's "Trading Nation."
One fast-food stock is nailing the important breakfast offering, and it could have more room to grow, Tepper says.
"Quite frankly, when you think of fast-food breakfast, you think of McDonald's, and when I look at everything that McDonald's is doing from improving customer experience to mobile delivery store makeovers, all that stuff, and then you see that McDonald's is actually the cheapest of the bunch from a valuation perspective, that's where I'd rather be," said Tepper. "McDonald's is a good defensive player right now and I don't think it's going to flame out anytime soon."
Ari Wald, head of technical analysis at Oppenheimer, says that dominance in the space should continue to play out on the charts even in the face of recent weakness.
"The stock recently pulled back 7% from its August peak into its recent October low [but] I think the more important point is that there was no damage to the uptrend done on that pullback," said Wald.
"In terms of some levels of support, that starts at $206 followed by $200, which is right around where the 200-day moving average comes into play. But more importantly, our expectation is for higher lows followed by higher highs given that bullish uptrend," said Wald.
McDonald's most recently hit a record on Aug. 9. It is roughly 5% below that high.