According to Credit Suisse, investors should be buying McDonald’s shares.
This is because the fast food chain’s use of higher quality fresh ingredients will drive revenue higher next year.
The firm is keeping its outperform rating on the company.
Credit Suisse analyst Jason West wrote in a note to clients Friday, “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. 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.”
McDonald’s has revealed that it will use fresh beef over frozen patties for its Quarter Pounder burgers next year at most of its U.S. locations.
The company has been trying to choose healthier alternatives and have already removed artificial preservatives from Chicken McNuggets and cut the high fructose corn syrup from its bread.
McDonald’s company’s chief executive Steve Easterbrook said in a statement that the new beef policy was in line with changes it has made in the last two years to “build a better McDonald’s” including serving all-day breakfast, moving to cage-free eggs and testing delivery.
Wendy’s Twitter account threw some shade and tweeted to McDonald’s, “So you’ll still use frozen meat in MOST of your burgers in ALL of your restaurants? Asking for a friend.”
Disclaimer: We have no position in McDonald’s Corporation (NYSE: MCD) and have not been compensated for this article.