Investors should buy McDonald's shares because of new product offerings ahead next year and likely better-than-expected sales results, according to Credit Suisse, which reiterated its outperform rating on the restaurant chain.
"Our recent channel checks suggest US SSS [same-store sales] have improved in recent weeks, allaying fears about difficult compares in 4Q," analyst Jason West wrote in a note to clients Tuesday.
West's prescient upgrade of McDonald's stock in September 2015 preceded a 23 percent rally in the shares into the end of that year. The upgrade was based on the restaurant's expansion of all-day breakfast.
The analyst said McDonald's franchisees told him sales went "slightly positive" in November and December after a decline in October.
