McDonald's Rises on Upgrade

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.

Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.

More from Investing

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

Danica Patrick's Final Race at 2018 Indianapolis 500: What She Thinks About Cars

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

Why The FANG Stocks' Dominance May Not Be So Bad For The Market

At End of May, Investors Signalling They May Stay Away

At End of May, Investors Signalling They May Stay Away

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever

Neel Kashkari: The Heart of Our Financial System Is More Radioactive Than Ever