NEW YORK (TheStreet) -- McDonald's (MCD) - Get Report stock is advancing by 0.08% to $125.93 in early-morning trading on Thursday, as the fast food chain plans to add more than 1,500 restaurants in China, Hong Kong and South Korea throughout the next five years.
The company already has more than 2,800 restaurants in those markets, according to Reuters.
Additionally RBC Capital, which has an "outperform" rating on shares,increased its price target to $135 from $132 on the stock.
The fast food chain's McPick 2 value brand will likely be one of several catalysts that will help McDonald's sustain sales beyond 2016, RBC Capital wrote in a note.
Other factors that should support continued sales include the All Day Breakfast lift, restaurant asset investments such as digital menu boards, reimaging, and drive-through investments, a heightened focus on order accuracy, food quality upgrades, loyalty and digital order and pay, the firm continued.
Improved industry growth, the end of international crises and a more stable foreign exchange should help end downward per-share earnings revisions, according to RBC Capital.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
McDonald's strengths such as its solid stock price performance, increase in net income, notable return on equity, expanding profit margins and growth in earnings per share outweigh the fact that the company shows weak operating cash flow.
You can view the full analysis from the report here: MCD
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.