On McDonald's, Piper Jaffray Moving to the Sidelines

shares have gained 7 percent this year, causing analysts at Piper Jaffray to encourage investors to move to the sidelines. The analysts said that McDonald's partnership and relationship with franchisees is "paramount to success."

The current share price increase is based on investor optimism around potential new food sourcing initiatives. However, Piper Jaffray noted that it was just as important for the company to remain "true to its core menu." Instead of menu changes, Piper Jaffray said that McDonald's should focus on customer-facing technology.

Piper Jaffray is moving to Neutral from Overweight, leaving a $97 price target on the stock – a slight discount to yesterday's close of $100.25.