Restaurant Analyst: McDonald's U.S. Turnaround Is Happening

McDonald's Corporation MCD announced a game plan to improve its struggling business back in 2015.CEO Steve Easterbrook even acknowledged the burger chain's woes and said "we're not on our game."

Two years later, McDonald's turnaround is a reality at least according to RBC Capital restaurant analyst David Palmer.

Speaking as a guest on CNBC Tuesday, Palmer described McDonald's Q1 beat as "pretty good." More important, the results show that the "turnaround is happening" in the key U.S. market. In fact, the company's same-store sales boost of 1.7 percent in the U.S. was particularly impressive as consensus estimates were calling for a decline.

Palmer added that McDonald's international segment has been "strong for a while" although a turnaround in the U.S. is "key."

McDonald's Immune From Grocery Strength

One of the biggest trends facing restaurants was cheap prices at grocery stores. As consumers looked to save a few dollars they started eating out less often but the analyst pointed out McDonald's was immune from this trend.

McDonald's can continue to attract consumers given its value proposition, including dollar beverages. In fact, the analyst believes McDonald's is preparing to become even more "sharper on the value message" for the first time since 2012 when it began shedding market share. Other non-menu related initiatives will also help McDonald's outlook, including operational changes, mobile ordering and payments, and even a loyalty program.

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