Citigroup released a report stating that it upgraded its investment rating and Target Price for McDonald's (MCD.US), raising the investment rating from 'Neutral' to 'Buy', and increasing the Target Price from $311 to $334.

The firm indicated that after more than a year of consumers adjusting to price rebounds, it is expected that this year will be one where the company fully leverages its scale advantages, driving market share growth in major markets and promoting a recovery in profit margins and EBIT growth.

The firm believes that the company has addressed the issue of differentiated cost structures across the country, allowing franchisees to use 'basic' item pricing to manage profitability. It also believes that a national promotion will help recover lost time, accelerate relative market share growth, and restore over 3% comparable sales growth in the USA, contributing to PE expansion and outperforming the market over the next 12 months.