NEW YORK (TheStreet) -- Shares of McDonald's (MCD) - Get Report were advancing in pre-market trading on Tuesday after analysts at Canaccord Genuity initiated coverage of the stock with a "hold" rating.
The firm has a $122 price target on shares of the Oak Brook, IL-based fast food giant.
"Management has accomplished an impressive turnaround over the last year, which we believe is virtually unprecedented in the restaurant industry," Canaccord noted.
McDonald's strategy in 2016 involved restructuring leadership and reporting segments and changing advertising, promotions and operations, including ingredients and processes. Despite the changes, Canaccord said that "high hurdles await" the company.
However, the firm added that it is "cautious on shares" as it predicts that same-store sales will be lower in the second half of 2016 than the first, particularly in the U.S.
Canaccord is modeling same-store sales growth of 0.7% in the third quarter and a decline of 0.4% in the fourth.
Separately, 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 articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C+.
The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and generally higher debt management risk.
You can view the full analysis from the report here: MCD