Despite months of low U.S. sales, Credit Suisse is calling McDonald's one of its top investment ideas right now. But are investors actually lovin' it?
Will Slabaugh, a research analyst at Stephens, told CNBC that the current quarter is going to be crucial in finding out if McDonald's can make a turnaround.
"I think what we're seeing now is even though we like this stock over the next 12 months, a lot of that is being priced into the stock going into earnings, so we're a little more hesitant to jump in right in front of the print just given that there's a lot of options and other things being baked in right now," Slabaugh said on Monday's "Power Lunch."
R.J. Hottovy, a strategist at Morningstar, said he echoes Slabaugh's sentiment about learning from McDonalds' quarterly update. He said there might be a little bit more momentum to be had from the burger chain.
"The other thing to look out for, too, is the company's talked about some other structural moves, potentially they'd take a look at whether it'd be real estate transactions, additional refranchising above and beyond what they've looked at or additional SG&A cuts," Hottovy added on Tuesday's "Power Lunch." "I think that could be another lever to get people attracted to this name… ."
While he doesn't think McDonald's would sell all of their stores and convert them into franchises, Hottovy told CNBC he thinks they have the room to get into the 90-95 percent range.
But Slabaugh cautioned, "McDonald's willingness to really make any change historically has been pretty small. So will the new management team make some of those changes that we want to see? You know, I guess to be seen this week."
McDonald's stock was priced at around $104 in afternoon trading.