Buy McDonald's because the new fresh beef Quarter Pounder will increase sales, Credit Suisse says

McDonald's Quarter Pounder hamburger
Getty Images

Investors should buy McDonald's shares as the restaurant chain's use of higher quality fresh ingredients will drive revenue higher next year, according to Credit Suisse, which reiterated its outperform rating on the company.

The fast-food giant revealed it will use fresh beef instead of frozen patties for its Quarter Pounder burgers in 2018 at most of its U.S. locations.

"We believe this move could be positive for US SSS [same-store sales] trends from both a direct lift to QP sales and a general uptick in brand perception," analyst Jason West wrote in a note to clients Friday. "We note this initiative also opens the door to further expansion in MCD's use of fresh ingredients, which could lead to sales lifts in other products and further improvement in brand perception."

More In Pro News and Analysis

CNBC ProCNBC’s Halftime Report traders answer your questions on Disney, Uber and PayPal
CNBC ProUBS’ Art Cashin shares what he’s watching for on inflation and where he sees possible bubbles
CNBC ProEmerging from the pandemic, Uber, Lyft may face global challenges to their gig work model