How McDonald's Stock Jumped 26% in the First Half of 2017

What happened

Shares of McDonald's (NYSE: MCD) gained 25.8% in the first half of 2017, according to data from S&P Global Market Intelligence.

So what

The fast-food chain's shares largely followed the broader market at the start of the year, sticking within a few percentage points of the S&P 500. That changed in a hurry on April 25 when a strong first-quarter earnings report sent shares more than 5% higher in a single day. The surge turned out to have staying power, as analysts followed up with buckets of upgrades and positive notes based on what McDonald's proved in the opening months of 2017.

Now what

McDonald's is taking several important steps to modernize its operations, and many of these efforts are paying off in a hurry. Serving popular breakfast items all day was a big winner, along with the promise to only use fresh beef in Quarter Pounder burgers and no more high fructose corn syrup in McDonalds' buns. The ordering and checkout process is also being updated with mobile ordering apps and unmanned kiosks, which should unlock lower operating costs as consumers get used to the new experience.

This old school fast-food chain is looking for ways to remain relevant in an era of changing consumer habits. Revenue is still sliding downward, but margins have already widened and bottom-line profits are stable. At the very least, that's a good start.

10 stocks we like better than McDonald'sWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and McDonald's wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of June 5, 2017

Anders Bylund has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.