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Pro Analysis

Buy McDonald's because of its new menu offerings, digital ordering, Bernstein says

Ronald McDonald balloon is seen at the 90th Annual Macy's Thanksgiving Day Parade on November 24, 2016 in New York City.
Noam Galai | Getty Images
Ronald McDonald balloon is seen at the 90th Annual Macy's Thanksgiving Day Parade on November 24, 2016 in New York City.

Investors should buy McDonald's shares because its new technology and food initiatives will drive sales above expectations, according to Bernstein, which raised its rating on the restaurant chain to outperform from market perform.

"More menu innovation and, over time, experience of the future [mobile and kiosk digital ordering] will prove beneficial, as it has in other markets," Bernstein analyst Sara Senatore wrote in a note to clients Tuesday. "Elsewhere, strong performance in Japan and healthy macro trends in Europe suggest other major markets are also performing well."