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 Shares in the company rose $2.97, or 5.8 percent, to $54.17 in midday trading after reaching a new high-water mark of $54.68.
The increase came a day after McDonald's raised its annual dividend by 50 cents per share to $1.50 on Wednesday afternoon and said it expects to return between $15 billion and $17 billion in cash to shareholders through dividends and share buybacks between 2007 and 2009.
Several brokerages upgraded their outlook for McDonald's shares.
"We believe positive global momentum combined with shareholder-friendly initiatives position McDonald's well in a challenging market environment," said Citigroup analyst Glen Petraglia in a research note.
Morgan Stanley analyst Mark Wiltamuth said McDonald's is effectively doubling its goals for annual return of cash to shareholders.
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 "Given the company's stronger than expected sales trends in U.S., Europe and Asia Pacific and now this larger-than expected buyback and dividend goal, we are increasing our earnings estimates and price target," he said in a note to investors.
Deutsche Bank analyst Jason West said the move speaks to management's growing confidence in the stability of its business and cash flow.
The world's largest restaurant company earlier this week announced stronger-than-expected August sales, citing robust demand in its U.S. outlets for its breakfast items, drinks and new Chipotle chicken wrap as well as a continuing turnaround in Europe.
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On the Net:
http://www.mcdonalds.com/
[Associated Press]
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