McDonald’s shares lift Dow to green zone after price upgrade

McDonald's Company

The shares of the fast food giant, McDonald’s, in the US stock market registered a blistering performance of Thursday session as it surged more than 2%, enough to help the Dow Jones Industrial Average to extend its winning ways to two sessions.

McDonald’s shares tacked on 2.2% gain, or $3.44 dollars, to settle at $157.49 per share after reports surfaced that the data provider Longbow Research has upgraded its rating to the popular fast food giant.

This advancement steered the blue chip index to its second consecutive winning streak as it

The firm, according to its analyst Alton Stump, has raised its price target to $186 per share at the end of this year, an equivalent to 16% rise compared to its current level.

Also, the company upgraded its evaluation on McDonalds from its previous rating of ‘neutral’ and now to ‘buy,’ as the fast food giant was expected to deliver strong third quarter sales report due on October 24.

Analysts have forecasted a 4.5% same-store sales increase, up from 4% in the year prior and higher than FactSet’s expectations of just 3.4%.

The surge on McDonald’s surge just came in time as the financial sector, which helped the Dow index to erase its four-day losing skid, gave up most of its gains yesterday.

Meanwhile, the two other indices performed well in the stock market as the 11-sector S&P 500 settled at its 38th best record of the year behind 0.1% surge, or 3.02 points, at 2 510.06.

The NASDAQ Composite, mostly consists of tech stocks, was little changed at 6 453.45.

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