Ahead of Bell: McDonald's upgraded to 'Buy'

NEW YORK (AP) — An appealing stock price and the expansion of its espresso-based coffee drinks led an analyst to raise the rating of McDonald's Corp. to "Buy" from "Hold" on Wednesday.

Deutsche Bank North America's Jason West said in a client note that the nation's largest hamburger chain could get a boost in the second half of the year from McCafe, as the espresso-based coffee drinks can now be found in more than 10,000 locations compared with 1,000 restaurants a year earlier.

The Oak Brook, Ill.-based company began promoting the drinks in TV, radio, print, online and outdoor ads earlier this month — part of a more than $100 million marketing campaign to introduce the line to U.S. consumers.

Easing commodity and currency pressures are also likely to help results, West added. In addition, West feels that McDonald's stock price provides a good entry point.

"With the stock now boasting an all-time high dividend yield and an improving earnings outlook, we believe shares are as attractive as they've been in quite some time," West wrote.

The analyst increased McDonald's price target to $65 from $60.

Shares of McDonald's closed Tuesday at $53.87.