McDonald's Corp. (MCD) shares rose 0.58% Thursday, Sept. 28, after Longbow Research upgraded the stock to "buy" from "neutral" on a positive comp sales outlook.

Analyst Alton Stump said McDonald's is poised to report third quarter comp sales of 4% to 4.5%, which would top the Wall Street consensus of 3.4%. Stump said conversations with franchise owners suggest new menu items including the Sriracha Big Mac and a line of Signature Crafted sandwiches have enhanced sales.

"Beyond positive trends for the current quarter, we believe the shares of MCD deserve to trade above the company's own historical multiples in light of its ongoing turnaround story both in the U.S. and internationally," Stump wrote.

Longbow put a $183 price target on McDonald's stock, which represents a 17% upside from McDonald's Thursday opening price. Shares have traded higher 30% this year.

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