Analysts at Credit Suisse believes that McDonald’s Corporation (NYSE:MCD) is a good stock to buy as recent promotions and revamped food offerings are improving the company’s sales.
Shares of McDonald’s Corporation (NYSE:MCD) is up over 24% so far this year. Credit Suisse maintained its “Outperform” rating on the fast-food chain. The firm raised its price target to $165 from $157.
In a note to clients on Thursday, the firm’s analysts said that the fast-food chain’s “franchisees indicated that investments in food quality and operations may now be translating into sustainable market share gains. This gives us increased confidence in the trajectory of MCD’s US business,” CNBC reported.
McDonald’s reported a 1.7% increase in first quarter comparable sales in the U.S., “building upon strong prior year results that benefited from the launch of All Day Breakfast.”
“The U.S. continues to strengthen its foundation as it executes strategic menu, value and convenience initiatives, with first quarter performance benefiting from the expansion of All Day Breakfast offerings, along with the Big Mac and beverage value promotions,” McDonald’s said in a statement.
Comparable sales for the international segment rose 2.8% for the quarter, primarily driven by continued momentum in the U.K. and Canada’s launch of All Day Breakfast. The segment’s operating income increased 2%, fueled by sales-driven improvements in franchised margin dollars across most markets, the fast-food chain said.
To attract more customers, McDonald’s is betting on menu innovation, store renovations, digital ordering and delivery.
Shares of McDonald’s Corporation (NYSE:MCD) were trading down 0.34% on Thursday. During the last 12 months, the company’s share price has surged nearly 25%.