McDonald's shares should jump 15% in the next year on new burgers, better food menu, analyst says

Key Points
  • BMO Capital Markets is optimistic about McDonald's food improvements such as the upcoming "fresh beef" initiative for Quarter Pounder burgers next year.
  • The firm's 2018 McDonald's earnings per share forecast is $6.69 versus the Wall Street consensus of $6.65.
McDonald's Egg McMuffin
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Investors should buy McDonald's shares because its new menu improvements will drive earnings above expectations next year, according to BMO Capital Markets, which initiated on the restaurant chain with an outperform rating.

"We believe MCD has a well-developed pipeline of menu news to continue to support customer engagement with the brand, including more focused value efforts, renovations around core menu items, and new product innovation," analyst Andrew Strelzik wrote in a note to clients Thursday.