McDonald's Corporation (NYSE:MCD) was boosted by broker positivity on Tuesday, with the fast-food stock up almost 1%.
Wall Street investors are upbeat on the world’s biggest burger flipper in part because of the group’s successful roll-out of mobile phone based ordering.
Analysts at Cowen & Co, which upgraded McDonald’s to ‘outperform’ from ‘market perform’ highlighted in a note that mobile ordering was a positive addition and not a threat to ‘drive thru’ sales which account for 70% of the company’s business.
"In our view McDonald's differentiation lies in the operational enhancements of mobile ordering that includes curbside pick-up of orders in order to not disrupt the drive-thru,” the broker said.
Cowen & Co’s new target price of US$180, up from US$142, sees some 18% upside to the stock’s current price of US$154.