McDonald's (MCD) was upgraded Wednesday on excitement of the expansion of McCafe, sending shares up more than 4% in afternoon trading.
Deustsche Bank analyst Jason West upgraded the fast-food chain to buy from hold, saying it could receive a boost in the second half of the year. McCafe now has more than 10,000 locations, compared to 1,000 the same time last year.
The company began promoting its espresso drinks on TV, radio, print and outdoor ads earlier this month as part of a $100 million marketing campaign.
Easing commodity and currency pressures are also likely to help results, West added, and the stock price is at a good entry point. "With the stock now boasting an all-time high dividend yield and an improving earnings outlook, we believe shares are as attractive as they've been in quite some time," he wrote, while increasing his price target to $65 from $60.Last week, Jim Cramer said stocks in the restaurant sector, which have been in the doghouse, are making a comeback. He cited McDonald's as "the way to go" within the sector.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV