Yum! Brands, Inc. (YUM), Michael Kors Holdings Ltd (KORS), Groupon Inc (GRPN): This Week’s Five Smartest Stock Moves

If you’re feeling good about the market, you’re not alone. Take my hand as we go over some of this week’s more uplifting headlines.

1. Waffling about
Yum! Brands, Inc. (NYSE:YUM) Taco Bell may have another head-turning hit on its hands.

The fast food chain is expanding its test of a waffle taco that apparently was a hit at the first three Southern California stores it was introduced in earlier this year.

The breakfast treat — essentially a waffle wrapped around scrambled eggs and a sausage patty — will be added to roughly 100 stores in three different markets.

This is the kind of news that will draw media attention, just as its Doritos-dusted tacos did last year. We saw how well that played out for Taco Bell, with comps soaring 8% in 2012. The waffle taco won’t have that kind of a dramatic impact on the chain’s business, but it will draw attention to Taco Bell as a breakfast destination.

Now, if only someone could drum up a jalapeno maple syrup.

2. Par for the Kors
Affluent shoppers are replacing their Coach handbags with Michael Kors Holdings Ltd (NYSE:KORS)‘ luxury goods.

A week after its larger rival posted disappointing quarterly results that were weighed down by a 1.7% decline in comps at North American stores, Michael Kors Holdings Ltd (NYSE:KORS) posted another blowout quarter, with North American same-store sales surging 25%.

Revenue itself soared 55%, to $640.9 million, as strong wholesale activity, and brisk expansion on top of the spectacular comps, drove high-end buyers to Michael Kors Holdings Ltd (NYSE:KORS). Net income skyrocketed 82%.

Luxury is alive and well, as long as investors buy the right brands.

3. Groupon deals with success
Groupon Inc (NASDAQ:GRPN) broke through the ceiling of single-digit share prices for the first time in more than a year after posting robust quarterly results this week.

The daily deals leader posted better-than-expected growth, and the gains look even stronger when you back out Groupon Inc (NASDAQ:GRPN)’s iffy international endeavors.

Sure, a lot of Groupon Inc (NASDAQ:GRPN)’s growth is coming from low-margin goods. This isn’t the same high-margin model that investors fell in love with when the reborn dot-com darling went public at $20 two years ago. Despite beating on the top line, Groupon Inc (NASDAQ:GRPN) merely met bottom-line estimates.