McDonald’s Corp.’s stock climbed 1.6% in morning trade Tuesday after the fast food giant was upgraded to outperform from neutral at Credit Suisse. The firm has also raised McDonald’s price target to $112 from $100. Among the reasons for the upgrade, Credit Suisse cites an increase in global same-store sales that analysts believe will spread to the U.S., especially in the fourth quarter. The fast-food chain introduces all-day breakfast on October 6. Credit Suisse calls the U.S. business “the weakest link in the turnaround so far.” The firm is raising its fourth-quarter same-store sales estimate to 1.5% from 0.7%. The firm also believes McDonald’s stock will hit a “floor” in the low-$90 range, supported by the dividend, which represents at annual yield of 3.5% at current prices. McDonald’s stock is up 2% for the past three months.
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