This Analyst Says Buy McDonald’s For This Reason

One analyst is feeling very bullish on fast food king McDonald’s.

Jefferies analyst Andy Barish has reiterated a “buy” rating on McDonald’s and has cited the restaurant chain’s remodeling efforts for why the stock should be bought.

According to Barish, the strong download and install data for the restaurant’s mobile deal app has him very optimistic. He believes the company’s digital app for deals and promotions is gaining traction with consumers.

Barish notes that McDonald’s should see same-store sales benefiting from the app as well as the fast food company’s efforts to revamp its restaurants.

“We also see deeper penetration as customers take advantage of value offers,” the analyst said.

McDonald’s mobile app is driving customers to promotions like $1 drinks, $1 sandwiches and free fries with a $1 purchase. ”

“Mentions of Big Macs (in association with the 50th Anniversary promotion) and fresh beef (quarter-pounders and Signature Crafted) are up noticeably,” Barish said.

Citing data from SimilarWeb, Barish notes that average daily active users on McDonald’s Android app rose by 20 percent to 40 percent in recent months.

“MCD app downloads and install penetration data suggest digital strategy working,” he remarked.

Jefferies has a $190 price target on the stock.

Disclaimer: We have no position in McDonald’s Corp. (NYSE: MCD) and have not been compensated for this article.