Piper Jaffray: 'We Want To See An Evolution Not A Revolution' At McDonald's

McDonald's Corporation MCD reported a 4 percent decline in its U.S. same-store sales for February on Monday, which again highlighted how the company is having a difficult time in turning around its business.

Piper Jaffray analyst Nicole Miller Regan, who recently downgraded the stock to a Neutral from Overweight, was on CNBC to weigh in on the number and provide her outlook for the stock.

To Remain Range-Bound

"Shares are just really going to remain really range-bound," Regan said. "And we see these results really kind of giving some volatility to the stock to the downside and then there's just a lot of hope of the U.S. recovery that gives the volatility that we saw last week to the upside."

Evolution Not Revolution

Regan was asked that the recent comments from McDonald's suggest that the company itself is confused about what it is now and what it wants to be. She replied, "I think that's what worries me a little bit and that's why we did take the opportunity last week to go to Neutral. Frankly, we want to see an evolution, not a revolution, and those words seem a little stark, in contrast to what we would be looking for."

She continued, "For example, technology, we think that should be first and foremost, we think and hope that's not overshadowed by the ease of just changing menu and marketing and frankly for the last 50 years, they built a moat around this business and that's why it should only be an evolution. There's not even a close second player here."