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.
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